| **UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q**        |
|----------------------------------------------------------------------------------------------|
| **QUARTERLY REPORT PURSUANT TO SECTION 13 or 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934** |
| For the quarterly period ended October 2, 2005                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | Commission file number:     1-5761                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
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|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| **LaBarge, Inc.**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| (Exact Name of Registrant as specified in its charter)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
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| DELAWARE                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | 73-0574586 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| (State or Other Jurisdiction of Incorporation or Organization)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | (I.R.S. Employer    Identification No.)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
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| 9900 Clayton Road, St. Louis, Missouri                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | 63124                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| (Address or Principal Executive Offices)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | (Zip Code)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                   |
| (314) 997-0800                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| (Registrant’s Telephone Number, including Area Code)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| N/A                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| *(Former name, former address and former fiscal year, if changed since last report)*                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that theregistrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes [X].  No [  ].

Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Act).  Yes [X]  No [  ].

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes [  ] No[X].

Indicate the number of shares outstanding of each of the issuer’s classes of common stock as of October 2, 2005: 15,123,553 shares of common stock.

**This document constitutes part of a prospectus covering securities that have been registered under the Securities Act of 1933.**

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| **LaBarge, Inc.**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
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|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| **FORM 10-Q**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| **For the Quarter Ended October 2, 2005**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| **Table of Contents**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|                                                                                                                                                                              |

|                                                                                                                                                                                                         |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **Part I**                                                                                                                                                                                                   | **                ** | **Financial Information (Unaudited)** | ** ** |
|                                                                                                                                                                                               |
| **                **                                                                                                         | Item 1. | Financial Statements |   |
|                                                                                                                                                                                                         |
|                                         | Consolidated Statements of Income |  |
|                                    | Consolidated Balance Sheets |  |
|                                                                                                                                                                                                         | Consolidated Statements of Cash Flows |  |
|                                                                                                                                                                                                         | Notes to Financial Statements |  |
|                                                                                                                                                                                                         |
| **                **                                                                                                         | Item 2. | Management’s Discussion and Analysis of Financial Conditions and Results of Operations |  |
| **                **                                                                                                         |
|                                                                                                                                                                                                              | Item 3. | Quantitative and Qualitative Disclosures About Market Risk |  |
|                                                                                                                                                                                                         |  |
| **                **                                                                                                         | Item 4. | Controls and Procedures |  |
|                                                                                                                                                                                                         |
| **Part II**                                                                                                                                                                                                  |  | **Other Information** |  |
|                                                                                                                                                                                                         |
|                                                                                                                                                                                                         | Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds |  |
|                                                                                                                                                                                                              |  |  |
|                                                                                                                                                                                                              | Item 6. | Exhibits |  |
|                                                             |
| Signature                                                                                                                                                                                                    |
|                                                                                                                                                                                                         |
|                                                                                                                                                                                                              |

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**LaBARGE, INC.CONSOLIDATED STATEMENTS OF INCOME*(Unaudited)***

****

***(Amounts In Thousands -- Except Per-Share Amounts)***

****

****
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | **Three Months Ended**             |
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|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                    |
| **                                                                                                                **                                                                                                                                                                                                                                                                                                                                                                                             | ** **                         | **October 2, 2005** |     | October 3, 2004 |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                    |  |  |  |  |
| **Net sales**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                    | **$** | **39,639** |        | $ | 43,634 |  |
| **Cost and expenses:**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                    |                                                          |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Cost of sales                      |   |  | **30,141** |             | 33,594 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Selling and administrative expense |   |  | **5,625** |  |   | 5,858 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Interest expense                   |   |  | **404** |  |  | 514 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Other income, net                  |   |  | **(33** | **)** |   | (89 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                    |  |  |  |  |
| Earnings from continuing operations before income taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                               |  | **3,502** |  |  | 3,757 |   |
| Income tax expense                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                    |  | **1,471** |  |  | 1,454 |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                    |  |  |  |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                               |  |  |  |   |
| **Net earnings**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                               | **$** | **2,031** |  | $ | 2,303 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                    |  |  |  |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                    |  |  |  |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                    |  |  |  |  |
|                                                                                                                                                                                                      |
| **Basic net earnings per common share:**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                    |                                                         |
| **Basic net earnings**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                    | **$** | **0.13** |  | $ | 0.15 |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                    |  |  |  |  |
|                                                                                                                                                                                       |
| **Average common shares outstanding**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                               |  | **15,084** |  |   | 14,975 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                    |  |  |  |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                    |  |  |  |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                    |  |  |  |  |
|                                                                                                                                                                                  |
| **Diluted net earnings per share:**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                               |  |  |             |  |  |
| **Diluted net earnings**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                    | **$** | **0.13** |  | $ | 0.15 |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                    |  |  |  |  |
|                                                                                                                                                                                       |
| **Average diluted common shares outstanding**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                    |  | **16,069** |  |  | 15,664 |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                    |  |  |  |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                    |  |  |  |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                    |  |  |  |  |

  See accompanying notes to consolidated financial statements.

**LaBARGE, INC.CONSOLIDATED BALANCE SHEETS*****(Amounts In Thousands -- Except Share Amounts)***

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| **   **                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | ** **                                                                                                                                               | **October 2, 2005**                                                                                                                                                                                                                                                                                                                  |                                                                      | July 3, 2005                                     |             |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------|--------------------------------------------------|-------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                      |                                                                                          |                                                  |             |
| **                                                                                                                    **                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                      | *(Unaudited)*                                                                            |                                                  |             | *                   * |  |
| **ASSETS**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                      |                                                                                          |                                                  |        |  |   |
| **Current assets:**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                      |                                                                                          |          |        |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Cash and cash equivalents                                                                                                                                |                                                                                                                                                                                                                                                                                                                                 | **$**                                                                                    | **1,979**                                        |        | $ | 820 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Accounts and other receivables, net                                                                                                                      |                                                                                                                                                                                                                                                                                                                                 |                                                                                          | **20,906**                                       |             |   | 23,371 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Inventories                                                                                                                                              |                                                                                                                                                                                                                                                                                                                                 |                                                                                          | **45,329**                                       |             |  | 41,342 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Prepaid expenses                                                                                                                                         |                                                                                                                                                                                                                                                                                                                                 |                                                                                          | **1,085**                                        |             |   | 974 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Deferred tax assets, net                                                                                                                                 |                                                                                                                                                                                                                                                                                                                                 |                                                                                          | **1,321**                                        |             |  | 1,387 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                      |                                                                                          |                                                  |             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | **Total current assets**                                                                                                                                 |                                                                                                                                                                                                                                                                                                                                 |                                                                                          | **70,620**                                       |             |  | 67,894 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                      |                                                                                          |                                                  |             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                      |                                                                                          |                                                  |        |
| Property, plant and equipment, net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                      | **19,627**                                                                               |                                                  |             | 18,849 |   |
| Intangible assets, net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                      | **3,155**                                                                                |                                                  |        | 3,388 |   |
| Goodwill, net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                      | **24,292**                                                                               |                                                  |        | 24,292 |  |
| Other assets, net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                      | **5,677**                                                                                |                                                  |        | 5,514 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                      |                                                                                          |                                                  |             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | **Total assets**                                                                                                                                         |                                                                                                                                                                                                                                                                                                                                 | **$**                                                                                    | **123,371**                                      |             | $ | 119,937 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                      |                                                                                          |                                                  |             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                      |                                                                                          |                                                  |             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                      |                                                                                          |                                                  |             |
|                                                                                                                                                                                  |
| **LIABILITIES AND STOCKHOLDERS’ EQUITY**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                                                                                     |                                                        |
| **Current liabilities:**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                      | **              ** |                                                  |             |            |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | Short-term borrowings                                                                                                                                    |                                                                                                                                                                                                                                                                                                                                      | **$**                                                                                    | **3,500**                                        |             | $ | 1,650 |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Current maturities of long-term debt                                                                                                                     |                                                                                                                                                                                                                                                                                                                                 |                                                                                          | **4,967**                                        |             |  | 4,661 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Trade accounts payable                                                                                                                                   |                                                                                                                                                                                                                                                                                                                                 |                                                                                          | **12,596**                                       |             |   | 10,026 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Accrued employee compensation                                                                                                                            |                                                                                                                                                                                                                                                                                                                                 |                                                                                          | **7,225**                                        |             |   | 9,511 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Other accrued liabilities                                                                                                                                |                                                                                                                                                                                                                                                                                                                                 |                                                                                          | **3,451**                                        |             |   | 2,609 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | Cash advances                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                      |                                                                                          | **10,378**                                       |             |   | 11,445 |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                      |                                                                                          |                                                  |             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | **Total current liabilities**                                                                                                                            |                                                                                                                                                                                                                                                                                                                                 |                                                                                          | **42,117**                                       |             |  | 39,902 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                      |                                                                                          |                                                  |             |
| Long-term advances from customer for purchase of materials                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                      | **3,567**                                                                                |                                                  |             | 3,854 |   |
| Deferred tax liabilities, net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                      | **584**                                                                                  |                                                  |        | 746 |  |
| Long-term debt                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                      | **20,503**                                                                               |                                                  |             | 21,605 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                      |                                                                                          |                                                  |             |
|                                                                                                                                                                                  |
| **Stockholders’ equity:**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                     |                                                        |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Common stock, $.01 par value.  Authorized 40,000,000 shares; 15,773,253 issued at October 2, 2005 and at July 3, 2005, including shares in treasury |                                                                                                                                                                                                                                                                                                                                 |                                                                                          | **158**                                          |             |   | 158 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Additional paid-in capital                                                                                                                               |                                                                                                                                                                                                                                                                                                                                 |                                                                                          | **14,120**                                       |             |   | 13,722 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Retained earnings                                                                                                                                        |                                                                                                                                                                                                                                                                                                                                 |                                                                                          | **44,754**                                       |             |  | 42,723 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | Accumulated other comprehensive income                                                                                                                   |                                                                                                                                                                                                                                                                                                                                      | **124**                                                                                  |                                                  | ---         |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | Less cost of common stock in treasury, shares of 649,700 at October 2, 2005 and 723,345 at July 3, 2005                                                  |                                                                                                                                                                                                                                                                                                                                      | **(2,556**                                                                               | **)**                                            | (2,773      | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                      |                                                                                          |                                                  |             |
|                                                                                                                                                                                       |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | **Total stockholders’ equity**                                                                                                                     |                                                                                                                                                                                                                                                                                                                                 |                                                                                          | **56,600**                                       |             |   | 53,830 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                      |                                                                                          |                                                  |             |
|                                                                                                                                                                                  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                          | **Total liabilities and stockholders’ equity**                                                                                                                                                                                                                                                                                 |                                                                                     | **$**                                            | **123,371** |  | $ | 119,937 |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                      |                                                                                          |                                                  |             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                      |                                                                                          |                                                  |             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                      |                                                                                          |                                                  |             |

See accompanying notes to consolidated financial statements.

**LaBARGE, INC.CONSOLIDATED STATEMENTS OF CASH FLOWS(Unaudited)**

***(Amounts In Thousands)***
| **                                                                                         **                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | **Three Months Ended**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                       |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                            |  |  |
| **                                                                                           **                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | ** **                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | **October 2, 2005**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | ** **                                                                                                                                                                                 | October 3, 2004 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                            |  |  |
| **Cash flows from operating activities:**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                       |                                                                                                                                                                                       |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | Net earnings                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | **$**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | **2,031**                                                                                                                                                                                  | **         ** |         | $ | 2,303 |           |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | Adjustments to reconcile net cash provided by operating activities:                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                          |                                                                                                                                                                                       |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | Depreciation and amortization                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                           | **1,075** |  |   | 1,065 |  |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | Stock-based compensation                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                            | **475** |  |  | 9 |  |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | Realized gain on sale of investment                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                            | **(5** | **)** |  | --- |  |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | Deferred taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                       | **(169** | **)** |   | (9 | ) |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | Other                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                       | **---** |  |   | (1 | ) |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | Changes in assets and liabilities, net of acquisitions:                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                       |  |  |   |  |  |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Accounts and notes receivable, net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                                                                                                       |   | **2,484** |  |   | 1,555 |  |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Inventories                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                                                                                                                                                       |   | **(3,987** | **)** |   | (5,284 | ) |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Prepaid expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                                                                                                                                                                       |   | **(111** | **)** |   | (188 | ) |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | Trade accounts payable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                            |  | **2,382** |  |  | (412 | ) |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Accrued liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                                                                                                                       |   | **(1,371** | **) ** |   | (273 | ) |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | Advance payments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                                                                                                                                                                            |  | **(1,354** | **)** |  | (1,598 | ) |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                            |  |  |
| **Net cash (used) provided by operating activities**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | **1,450**                                                                                                                                                                                  |  |  | (2,833 | ) |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                            |  |  |
| **                                                                                                                                                                            ** |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| **Cash flows from investing activities:**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | Additions to property, plant and equipment                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                       | **(1,078** | **)** |  | (695 | ) |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | Proceeds from disposal of property and equipment                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                            | **62** |  |  | --- |  |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | Additions to other assets and intangibles                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                       | **(92** | **)** |  | (147 | ) |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                            |  |  |
| **Net cash (used) by investing activities**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | **(1,108**                                                                                                                                                                                 | **)** |  | (842 | ) |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                            |  |  |
|                                                                                                                                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| **Cash flows from financing activities:**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                 |  |  |                      |  |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | Borrowings on revolving credit facility                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                            | **12,525** |  |  | 19,075 |  |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | Payments of revolving credit facility                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                            | **(10,675** | **)** |  | (14,725 | ) |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | Repayments of long-term senior debt                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                            | **(1,100** | **)** |  | (1,127 | ) |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | Issuance of stock                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                       | **163** |  |  | 128 |  |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | Purchase of treasury stock                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                       | **(96** | **)** |  | --- |  |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                            |  |  |
| **                                                                                                                                                                           **       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| **Net cash provided by financing activities**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | **817**                                                                                                                                                                                    |  |  | 3,351 |  |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                            |  |  |
| **Net increase (decrease) in cash and cash equivalents**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | **1,159**                                                                                                                                                                                  | **        ** |  | (324 | ) |   |
| **Cash and cash equivalents at beginning of year**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | ** **                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | **820**                                                                                                                                                                                    |  |  | 793 |  |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                            |  |  |
|                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| **Cash and cash equivalents at end of period**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | **      **                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | **$**                                                                                                                                                                                      | **1,979** | **           ** |       | $ | 469 |  |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                            |  |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                            |  |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                            |  |  |
| Non-cash transactions: |                                       |        | **             ** |         |                                                            |                                            |              |     |
|------------------------|---------------------------------------|--------|------------------------------------------------------------------------------------|---------|------------------------------------------------------------|--------------------------------------------|--------------------------------------------------------------------------|-----|
|                   | Increase in capital lease obligations |   | **$**                                                                              | **304** | **         ** |         | $                                                                        | --- |           |

See accompanying notes to consolidated financial statements.
|         | **LaBarge, Inc****.**                          |          |
|--------------------------------------------|------------------------------------------------|--------------------------------------------------|
|                                            | **NOTES TO CONSOLIDATED FINANCIAL STATEMENTS** |                                                  |
|                                            | (Unaudited)                                    |                                                  |
| **1.** | **  ** | **CONSOLIDATED FINANCIAL STATEMENT -- BASIS OF PRESENTATION** |
|--------|------------------|---------------------------------------------------------------|

The consolidated balance sheet at October 2, 2005, the related consolidated statements of income for the three months ended October 2, 2005 and October 3, 2004, and the consolidated statements of cash flows for the threemonths ended October 2, 2005 and October 3, 2004, have been prepared by LaBarge, Inc. (the “Company”) without audit.  In the opinion of management, adjustments, all of a normal and recurring nature, necessary to present fairly the financial positionand the results of operations and cash flows for the aforementioned periods, have been made.  Certain prior-year amounts have been reclassified to conform to the current year’s presentation.

Certain information and footnote disclosures normally included in consolidated financial statements prepared in conformity with U.S. generally accepted accounting principles have been condensed or omitted.  Theseconsolidated financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended July 3, 2005.

***Stock-Based Compensation***As of October 2, 2005, the Company had established a number of share incentive programs, which are discussed in more detail in Note 11.  Prior to fiscal 2006, the Company applied the intrinsic value-based method as outlined in Accounting Principles Board OpinionNo. 25, “Accounting for Stock Issued to Employees,” (“APB No. 25”) and related interpretations, in accounting for stock options and share units granted under these programs. Under the intrinsic value-based method, no compensation expense wasrecognized if the exercise price of the Company’s employee stock options equaled the market price of the underlying stock on the date of the grant. Accordingly, prior to fiscal year 2006, no compensation cost was recognized in the accompanying consolidatedstatements of income on stock options granted to employees, since all options granted under the Company’s share incentive programs had an exercise price equal to the market value of the underlying common stock on the date of the grant.

Effective July 4, 2005, the Company adopted Statement of Financial Accounting Standards (“SFAS No. 123R”) “Share-based Payment.” This statement replaces SFAS No. 123, “Accounting forStock-Based Compensation,” and supersedes APB No. 25.  SFAS No. 123R requires that all stock-based compensation be recognized as an expense in the financial statements and that such cost be measured at the fair value of the award.  This statement wasadopted using the modified prospective method of application, which requires the Company to recognize compensation expense on a prospective basis. Therefore, prior period financial statements have not been restated. Under this method, in addition to reflectingcompensation expense for new share-based awards, expense is also recognized to reflect the remaining service period of awards that had been included in pro forma disclosures in prior periods. SFAS No. 123R also requires that excess tax benefits related to stockoption exercises be reflected as financing cash inflows instead of operating cash inflows. For the three months ended October 2, 2005, this new treatment has had no impact as the only options exercised were incentive stock options, which did not generate any excesstax benefits for the Company.

Total stock-based compensation expense in the first fiscal quarter of 2006 was $475,000 ($298,000 after tax), or $0.02 for both basic and diluted earnings per share. Included in this expense is $244,000 ($153,000after tax), or $0.01 for both basic and diluted earnings per share, attributable to the Company’s adoption of SFAS 123R. As of October 2, 2005, the total unrecognized compensation expense related to nonvested stock awards including stock options and performanceunits (PUs) was $1.2 million and the related weighted average period over which it is expected to be recognized is approximately 1.4 years.

The following table illustrates the effect on net income and earnings per share as if SFAS 123R had been applied to all outstanding awards for the three months ended October 2, 2005 and October 3, 2004:

*(dollars in thousands, except per-share amounts)*
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | **Three Months Ended**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|                                                                                     | **October 2,**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |      | **    ** | October 3, |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | **2005**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | **            ** | 2004 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | ***                                  ***                                                                                                                                                                                                                                                                                                                   |  |  | *(pro forma)* |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |  |  |  |
| Net earnings as reported                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | **         **                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | **$** | **2,031** |  |              | $ | 2,303 |               |
| Add: Stock-based employee compensation                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | **       **                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                             |
|   expense included in reported net income, net of   related tax effects                                                                                                                                                                                                                                                                                                                                                                                                                        | **298**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |  |  | 6 |  |
| Deduct: Total stock-based employee compensation                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |  |       |  |  |
|   expense determined under fair value-based                                                                                                                                                                                                                                                                                                                                                                                                                                                              | **    **                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                             |
|   method for all awards, net of related tax effects                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | **(298** | **)** |  | (162 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |  |  |  |
| Pro forma net earnings                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | **         **                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | **$** | **2,031** |  |              | $ | 2,147 |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |  |  |  |
| **Net earnings per share:**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                                                        |
| Basic--as reported                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | **            **                                                                                                                                                                                                                                                                                                                                                                                                                                                         | **$** | **0.13** |  |             | $ | 0.15 |   |
| Basic--pro forma                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | **0.13** |  |  | 0.14 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |  |  |  |
| Diluted--as reported                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | **             **                                                                                                                                                                                                                                                                                                                                                                                                                                                   | **$** | **0.13** |  |             | $ | 0.15 |   |
| Diluted--pro forma                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | **       **                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | **0.13** |  |   | 0.14 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |  |  |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |  |  |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |  |  |  |

No new stock options were issued in the quarter ended October 2, 2005. On January 11, 2005, the Company awarded performance units to certain key executives tied to fiscal year 2006 financial performance. Compensation expenserelated to this award was recognized in the first fiscal quarter but no shares are included in the dilutive shares, as the performance condition had not been met at October 2, 2005.

The fair value of stock options granted in the quarter ended October 3, 2004 is estimated on the date of grant using the Black-Scholes option pricing model with the following weighted-average assumptions for fiscal year 2005:risk-free interest rate of 3.8%; expected dividend yield of 0%; expected life of six years; and expected volatility of 66.5%.

All stock options outstanding at October 2, 2005 were dilutive and included in the computation of diluted earnings per share. Options to purchase 316,902 shares (at a per-share price of $8.54) were outstanding during the threemonths ended October 3, 2004, and were not included in the respective computations of diluted earnings per share because the exercise price of the options was greater than the average market price of the common shares.  These options expire in various periodsthrough 2011.
| **2.** | **  ** | **GROSS AND NET SALES** |
|--------|------------------|-------------------------|

Gross and net sales consist of the following:*(dollars in thousands)*
| **                                                                    ** | **Three Months Ended** |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                              |                        |
| ** **                                                                                                                                                                                                                                                                                                                                                                                                                   | **October 2,**         |          | October 3, |
| ** **                                                                                                                                                                                                                                                                                                                                                                                                                   | **2005**               |             | 2004 |
|                                                                                                                                                                                                                                                                                                                                                                                                                              |
| Gross sales                                                                                                                                                                                                                                                                                                                                                                                                                  | ** **             | **$** | **39,907** |          |                 | $ | 43,802 |  |
| Less sales discounts                                                                                                                                                                                                                                                                                                                                                                                                         |                        | **268** |  | **     ** |  | 168 |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                              |
| Net sales                                                                                                                                                                                                                                                                                                                                                                                                                    | ** **             | **$** | **39,639** |  |  | $ | 43,634 |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                              |
|                                                                                                                                                                                                                                                                                                                                                                                                                              |                        |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                              |

*Geographic Information*The Company has no sales offices or facilities outside of the United States.  Sales for exports did not exceed 10% of total sales in any fiscal year.

For the three months ended October 2, 2005, the Company’s three largest customers, and the percentage of revenues each contributed, were Owens-Illinois, Inc., 12%; Schlumberger, 11%; and Lockheed MartinCorp., 8%.  For the three months ended October 3, 2004, the Company’s three largest customers, and the percentage of revenues each contributed, were Owens-Illinois, Inc., 11%; Schlumberger Ltd., 10%; and Lockheed Martin Corp., 9%.
| **3.** | **  ** | **ACCOUNTS AND OTHER RECEIVABLES** |
|--------|------------------|------------------------------------|

Accounts and other receivables consist of the following:*(dollars in thousands)*
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | **October 2,** |                 | July 3,    |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------|--------------------------------------------------------------------------------------------|------------|
|                                                                                                    | **2005**       |                                                                                            |            | 2005 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                |                                                                                            |
| Billed shipments, net of progress payments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | **$**          | **20,490**                                                                                 | ** ** | $ | 23,352 |   |
| Less allowance for doubtful accounts                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                | **254**                                                                                    | ** ** |  | 326 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                |                                                                                            |
| Trade receivables, net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                | **20,236**                                                                                 | ** ** | 23,026 |   |
| Other current receivables                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                | **670**                                                                                    | ** ** | 345 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                |                                                                                            |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | **$**          | **20,906**                                                                                 | ** ** | $ | 23,371 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                |                                                                                            |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                |                                                                                            |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                |                                                                                            |

Progress payments are payments from customers in accordance with contractual terms for contract costs incurred to date.  These payments are recognized as revenue when the completed units are shipped.

At October 2, 2005, the amounts due from the three largest accounts receivable debtors and the percentage of total accounts receivable those amounts represented were $2.4 million, 12%; $1.8 million, 9%; and $1.8 million,9%. This compares with $3.0 million, 15%; $2.8 million, 13% and $2.5 million, 12% at July 3, 2005.
| **4.** | **  ** | **INVENTORIES** |
|--------|------------------|-----------------|

Inventories consist of the following:*(dollars in thousands)*
|   |                                                                           |                                            | **October 2,** |                     | July 3, |                            |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------|----------------|--------------------------------------------------------------------------------------|---------|--------------------------------------------------------------------|
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                      | **2005**       |                                                                                      | 2005    |                                                                    |
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                      |                |                                                                                      |         |                                                                    |
|        | Raw materials                                                                                                                                                                                                                                                                                                                                                                                                                                          | **        ** | **$**          | **31,873**                                                                           |         |             | $ | 29,324 |  |
|        | Work in progress                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                      | **13,456**     |                | 12,018  |                                                                    |
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                      |                |                                                                                      |         |                                                                    |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                        | **       **       | **$**          | **45,329**                                                                           |         |                  | $ | 41,342 |  |
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                      |                |                                                                                      |         |                                                                    |
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                      |                |                                                                                      |         |                                                                    |
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                      |                |                                                                                      |         |                                                                    |

In accordance with contractual agreements, the U.S. Government has a security interest in inventories identified with contracts for which progress payments have been received.

For the three months ended October 2, 2005 and October 3, 2004, expense for obsolescence charged to income before taxes was $116,000 and $80,000, respectively.
| **5.** | **  ** | **INTANGIBLE ASSETS, NET** |
|--------|------------------|----------------------------|

Intangible assets, net, is summarized as follows:*(dollars in thousands)*
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                                            | **October 2,**                                               |                    | July 3,                                                            |      |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------|--------------------------------------------------------------------------------|--------------------------------------------------------------------|--------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                            | **2005**                                                     |               | 2005                                                               |                          |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                              |                                                                                |                                                                    |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | Software                                                                                                                                                                                                                                                                                                                                                                                                                                                     | **         **   | **$**                                                                          | **2,735**                                                          |                          |  |            | $ | 2,722 |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | Less accumulated amortization                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                              | **2,266**                                                                      |                                                                    |                          |  | 2,192 |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                              |                                                                                |                                                                    |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | Net software                                                                                                                                                                                                                                                                                                                                                                                                                                                 |            | **469**                                                                        |             |                |            | 530 |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                              |                                                                                |                                                                    |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Customer list                                                                                                                                                                                                                                                                                                                                                                                                                                                |                 | **3,400**                                                                      |                                                                    |                          |  | 3,400 |                 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | Less accumulated amortization                                                                                                                                                                                                                                                                                                                                                                                                                                |                      | **926**                                                                        |                                                                    |                          |  | 785 |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                              |                                                                                |                                                                    |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | Net customer list                                                                                                                                                                                                                                                                                                                                                                                                                                            |            | **2,474**                                                                      |                                                                    |                          |  | 2,615 |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                              |                                                                                |                                                                    |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Other, net                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                              | **212**                                                                        |                                                                    |                          |  | 243 |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                              |                                                                                |                                                                    |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | Total intangible assets, net                                                                                                                                                                                                                                                                                                                                                                                                                                 |                      | **$**                                                                          | **3,155**                                                          |                          |  |             | $ | 3,388 |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                              |                                                                                |                                                                    |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                              |                                                                                |                                                                    |                          |  |  |  |  |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                              |                                                                                |                                                                    |
|                                                                                                                                                                  |

Intangibles are amortized over a three- to six-year period.  Amortization expense was $283,000 and $258,000 for the three months ended October 2, 2005 and October 3, 2004, respectively.

The Company anticipates that amortization expense will approximate $1.3 million for fiscal years 2006 and 2007, $1.2 million for fiscal year 2008, $1.0 million for fiscal year 2009, and $0.8 million for fiscal year2010.
| **6.** | **  ** | **GOODWILL** |
|--------|------------------|--------------|

Goodwill is summarized as follows:*(dollars in thousands)*
|   |                                                                           |                                      | **October 2,** |                | July 3, |                |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------|----------------|--------------------------------------------------------------------------------------|---------|--------------------------------------------------------|
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                | **2005**       |                                                                                      | 2005    |                                                        |
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                |                |                                                                                      |         |                                                        |
|        | Goodwill                                                                                                                                                                                                                                                                                                                                                                                                                                               | **       ** | **$**          | **24,492**                                                                           |         |                | $ | 24,492 |  |
|        | Less accumulated amortization                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                | **200**        |                | 200     |                                                        |
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                |                |                                                                                      |         |                                                        |
|   |  Net goodwill                                                                                                                                                                                                                                                                                                                                                                                                                                     | **       ** | **$**          | **24,292**                                                                           |         |           | $ | 24,292 |  |
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                |                |                                                                                      |         |                                                        |
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                |                |                                                                                      |         |                                                        |
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                |                |                                                                                      |         |                                                        |

Impairment is tested annually in the fourth quarter of each fiscal year, or more frequently if events or circumstances change.  There was no impairment of goodwill at October 2, 2005 and July 3, 2005.
| **7.** | **  ** | **OTHER ASSETS** |
|--------|------------------|------------------|

Other assets is summarized as follows:*(dollars in thousands)*
|   |                                                                           |                                            | **October 2,** |                 | July 3,                                                                                                      |                            |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------|----------------|--------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------|
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                      | **2005**       |                                                                                            | 2005                                                                                                         |                                                                    |
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                      |                |                                                                                            |                                                                                                              |                                                                    |
|        | Cash value of life insurance                                                                                                                                                                                                                                                                                                                                                                                                                           | **        ** | **$**          | **4,105**                                                                                  |                                                                                                              |             | $ | 3,934 |  |
|        | Deposits, licenses and other, net                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                      | **528**        |                                                                                            |                                                                                                              | 688                                                                |  |
|        | Securities held for sale                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                      | **687**        |                      | 504                                                                                                          |                                                                    |
|        | Deferred financing costs, net                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                      | **223**        |                                                                                            | 239                                                                                                          |                                                                    |
|        | Other                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                      | **134**        |                                                                                            | 149                                                                                                          |                                                                    |
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                      |                |                                                                                            |                                                                                                              |                                                                    |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                        | **       **       | **$**          | **5,677**                                                                                  |                    | $                                                                  | 5,514 |  |
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                      |                |                                                                                            |                                                                                                              |                                                                    |
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                      |                |                                                                                            |                                                                                                              |                                                                    |
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                      |                |                                                                                            |                                                                                                              |                                                                    |

In December 1999, the Company received 640,008 shares and options to acquire 5.2 million shares of Norwood Abbey Ltd. in partial settlement of a note receivable.  At that time, Norwood Abbey Ltd. was a newly formedAustralian company.  These shares and options were valued at $100,000.  Norwood Abbey was listed on the Australian Stock Exchange in August 2000.  Options to acquire 2.4 million shares expired, unexercised, due to the market price.  During thequarter ended December 28, 2003, the Company exercised options for 2.0 million shares at a per-share price of 1.00 Australian dollars, or $0.70 U.S. dollars, totaling $1.4 million U.S. dollars.  During the twelve months ended June 27, 2004, 850,000 shares weresold, resulting in a pretax gain of $225,000. During the 12 months ended July 3, 2005, no additional shares were sold, but an other-than-temporary impairment of $415,000 was recorded.  The remaining shares were valued at $0.28, totaling $504,000. During thequarter ended October 2, 2005, 50,000 shares were sold, resulting in a pretax gain of $5,000.  The remaining 1.7 million shares are held as available-for-sale securities and reported at fair value of $687,000, with the unrealized gain of $124,000, net of tax,reported as accumulated other comprehensive income in stockholders’ equity.

The Company entered into a senior loan agreement on February 17, 2004.  See Note 9.  The Company incurred $329,000 of financing costs that were deferred and are being amortized over a period beginning May 2004 andending February 2009.  At October 2, 2005, the unamortized amount was $223,000.
| **8.** | **  ** | **SHORT- AND LONG-TERM OBLIGATIONS** |
|--------|------------------|--------------------------------------|

Short-term borrowings, long-term debt and current maturities of long-term debt consist of the following:*(dollars in thousands)*
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                                            | **October 2,**                                 |                    | July 3,    |      |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------|--------------------------------------------------------------------------------|------------|--------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                            | **2005**                                       |               | 2005       |                          |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                |                                                                                |            |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | **Short-term borrowings:**                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                |                                                                                |            |                          |  |  |  |  |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |  Revolving credit agreement:                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                |                                                                                |            |                          |  |  |  |  |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   Balance at quarter-end                                                                                                                                                                                                                                                                                                                                                                                                                           | **       ** | **$**                                                                          | **3,500**  |                          |  |            | $ | 1,650 |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   Interest rate at quarter-end                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                | **5.00**                                                                       | **%**      |                          |  | 6.25 | % |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   Average amount of short-term borrowings                                                                                                                                                                                                                                                                                                                                                                                                          |                                                |                                                                                |            |                          |  |  |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |    outstanding during period                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                | **$**                                                                          | **461**    |                          |    |  | $ | 7,922 |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   Average interest rate for fiscal quarter                                                                                                                                                                                                                                                                                                                                                                                                         |                                                | **6.00**                                                                       | **%**      |                          |  | 4.48 | % |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   Maximum short-term borrowings at                                                                                                                                                                                                                                                                                                                                                                                                                 |                                                |                                                                                |            |                          |  |  |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |    any month-end                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                | **$**                                                                          | **3,500**  |                          |  |  | $ | 11,650 |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                |                                                                                |            |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                |                                                                                |            |                          |  |  |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                |                                                                                |            |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | **Senior long-term debt:**                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                |                                                                                |            |                          |  |  |  |  |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |  Senior lender:                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                |                                                                                |            |                          |  |  |  |  |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   Term loan                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                | **$**                                                                          | **19,000** |                          |  |  | $ | 20,000 |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   Mortgage loan                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                |                                                                                | **5,674**  |                          |  |  |  | 5,738 |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | ** ** Other                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                |                                                                                | **796**    |                          |  |  |  | 528 |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                |                                                                                |            |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Total senior long-term debt                                                                                                                                                                                                                                                                                                                                                                                                                                  |                       | **25,470**                                                                     |            |                          |  | 26,266 |                 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | Less current maturities                                                                                                                                                                                                                                                                                                                                                                                                                                      |                  | **4,967**                                                                      |            |                          |  | 4,661 |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                |                                                                                |            |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Long-term debt, less current maturities                                                                                                                                                                                                                                                                                                                                                                                                                      |                                      | **$**                                                                          | **20,503** |                          |  |  | $ | 21,605 |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                |                                                                                |            |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                |                                                                                |            |                          |  |  |  |  |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                |                                                                                |            |
|                                                                                                                                                                  |

The average interest rate was computed by dividing the sum of daily interest costs by the sum of the daily borrowings for the respective periods.

***Senior Lender:***The Company entered into a senior secured loan agreement with a group of banks on February 17, 2004.  The following is a summary of the agreement:
|  •                   |   | A revolving credit facility up to $20.0 million, available for direct borrowings or letters of credit.  The facility is based on a borrowing base formula equal to the sum of 85% of eligible receivables and 35% of eligibleinventories. As of October 2, 2005, outstanding loans under the revolving credit facility were $3.5 million.  Letters of credit outstanding were $1.6 million, and $14.9 million was available. This credit facility matures on February 17, 2009.                                                                                                                                                                                                                                                                                                                                                                                             |              |
|--------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------|
|       |   |                                                                                                                                                                                    |                                                                          |
|  •                   |   | A $25.0 million term loan amortized beginning May 2004, at a quarterly rate of $1.0 million, increasing to $1.25 million in May 2006 and increasing to $1.5 million in May 2007.  Final maturity is February2009.  As of October 2, 2005, the amount outstanding was $19.0 million.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                          |
|            |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                          |
|  •                   |        | On April 15, 2004, the Company entered into an Interest Rate Cap Agreement with a bank.  This Agreement caps the Company’s exposure to increases in LIBOR at 4% for a period of three years on a notional amountbeginning at $24.0 million and amortizing on a schedule that matches amortization of the $25.0 million term loan dated February 17, 2004.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                          |
|                                |        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                          |
|  •                   |        | Interest on both loans is at a percentage of prime or a stated rate over LIBOR based on certain ratios.  For the quarter ended October 2, 2005, the average rate was approximately 5.37%.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                          |
|       |   |                                                                                                                                                 |                                                                          |
|  •                   |   | Both loans are secured by substantially all the assets of the Company other than real estate.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                          |
|                           |        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                          |
|  •                   |        | Covenants and performance criteria consist of Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”) in relation to debt, EBITDA in relation to fixed charges, and minimum net worth.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                          |
|            |   |                                                                                                                                                           |                                                                     |

***Other Long-term Debt:****Mortgage Loan:*The Company has a $6.4 million term loan secured by the Company’s headquarters building in St. Louis, Missouri.  The loan repayment schedule is based on a 25-year amortization with a final balloon payment due in October2009.  The balance at October 2, 2005 was $5.7 million.  Interest is at a percentage of prime or a stated rate over LIBOR based on certain ratios.  For the quarter ended October 2, 2005, the average rate was approximately 4.08%.

*****Industrial Revenue Bonds:*In July 1998, the Company acquired tax-exempt Industrial Revenue Bond financing in the amount of $1.3 million.  The debt is payable over 10 years with an interest rate of 5.28%.  This funding was used to expand the Berryville,Arkansas, facility.  The outstanding balance at October 2, 2005 was $484,000.

*Capital Lease Obligations:*

In September 2005, the Company entered into a capital lease agreement to fund the purchase of machinery with a fair market value of $304,000. The lease is for five years with an interest rate of 6.11%. The obligationoutstanding at October 2, 2005 was $304,000.

The aggregate maturities of long-term obligations are as follows:*(dollars in thousands)*
| **Fiscal Year**               |
|-------------------------------|
|                               |
| 2007                          | ...............................................................  | $ | 3,601 |   |
| 2008                          | ...............................................................  |      | 5,725 |   |
| 2009                          | ...............................................................  |       | 6,483 |   |
| 2010                          | ...............................................................  |       | 4,862 |   |
| 2011                          | ...............................................................  |       | 4,782 |   |
| Thereafter                    | ...............................................................  |       | 17 |   |
|                               |
|     Total | ...............................................................  |  $ | 25,470 |   |
|                               |
| **9.** | **  ** | **CASH FLOWS** |
|--------|------------------|----------------|

****

Total cash payments for interest for the three months ended October 2, 2005 and October 3, 2004 amounted to $363,000 and $442,000, respectively.  Net cash payments for federal and state income taxes were$745,000 and $455,000 for the three months ended October 2, 2005 and October 3, 2004, respectively.
| **10.** | **  ** | **EARNINGS PER COMMON SHARE** |
|---------|------------------|-------------------------------|

Basic and diluted earnings per share are computed as follows:*(amounts in thousands, except per-share amounts)*
|                                                                                           |              | **October 2,**                                                                                                                                                                                                                                   |                                      | October 3, |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------|------------|
|                                                                                      |              | **2005**                                                                                                                                                                                                                                         |                                                | 2004       |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | Net earnings |                                          | **$**                                          | **2,031**  |  | $ | 2,303 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |              |                                                                                                                                                                                                                                                  |                                                |            |  |  |
| **Basic net earnings per share**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | **$**        | **0.13**                                                                                                                                                                                                                                         | **       ** | $          | 0.15 |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |              |                                                                                                                                                                                                                                                  |                                                |            |  |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |              |                                                                                                                                                                                                                                                  |                                                |            |  |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |              |                                                                                                                                                                                                                                                  |                                                |            |  |  |
| **Diluted net earnings per share**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |    | **$**                                                                                                                                                                                                                                            | **0.13**                                       |            | $ | 0.15 |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |              |                                                                                                                                                                                                                                                  |                                                |            |  |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |

Basic earnings per share are calculated using the weighted-average number of common shares outstanding during the period.  Diluted earnings per share are calculated using the weighted-average number of common sharesoutstanding during the period plus shares issuable upon the assumed exercise of dilutive common share options and awards by using the trmasury stock method.

*(share amounts in thousands)*
|                                                                                               |                                                      | **Three Months Ended** |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------|------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                      |                        |
|                                                                                               |                                                      | **October 2,**         |      | October 3, |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                      | **2005**               |  | 2004 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                      |                        |  |  |  |
| Average common shares outstanding -- basic                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | **        ** | **15,084**             |        |  | 14,975 |   |
| Dilutive options                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                      | **985**                |  |  | 689 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                      |                        |  |  |  |
| Adjusted average common shares outstanding -- diluted                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                      | **16,069**             |  |  | 15,664 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                      |                        |  |  |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                      |                        |  |  |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                      |                        |  |  |  |

All stock options outstanding at October 2, 2005 were dilutive for the quarter. The Company has awarded performance units to certain key executives tied to the Company’s fiscal year 2006 financial performance. Thecompensation expense related to this award was recognized in the first fiscal quarter, but no shares are included in the dilutive shares, as the performance condition has not been met at October 2, 2005. Options to purchase 316,902 shares (at a per-share price of$8.54) were outstanding during the three months ended October 3, 2004.  These option amounts were not included in respective computations of diluted earnings per share because the exercise price of the options was greater than the average market price of thecommon shares.  These options expire in various periods through 2011.
| **11.** | **  ** | **STOCK PROGRAMS** |
|---------|------------------|--------------------|

The Company has established the 1993 Incentive Stock Option Plan, the 1995 Incentive Stock Option Plan, and the 1999 Non-Qualified Stock Option Plan (collectively, the “Plans”). The Plans provide for the issuanceof 2,200,000 shares to be granted in the form of stock-based awards to key employees of the Company. In addition, pursuant to the 2004 Long Term Incentive Plan (“LTIP”), the Company provides for the issuance of 850,000 shares to be granted in the form ofstock-based awards to certain key employees and non-employee directors. The Company may satisfy the awards upon exercise with either new or treasury shares. The Company’s stock compensation awards outstanding at October 2, 2005 include stock options, restrictedstock and Performance Units (“PUs”).

Also, the Company has an Employee Stock Purchase Plan (“ESPP”) that allows any eligible employee to purchase common stock at the end of each quarter at 15% below the market price as of the first or last day of thequarter, whichever is lower. The Company has always recognized as expense the difference between the price the employee pays and the market price of the stock on the last day of the quarter.

Total net stock-based compensation expense is attributable to the granting of, and the remaining requisite service periods of, stock options, restricted stock and PUs, and shares sold under the ESPP. Compensation expenseattributable to net stock-based compensation in the three months ended October 2, 2005 was $475,000 ($298,000 after tax), or $0.02 for both basic and diluted earnings per share. As of October 2, 2005, the total unrecognized compensation cost related to nonvestedstock awards was $1.2 million and the related weighted-average period over which it is expected to be recognized is approximately 1.4 years.

A summary of the Company’s stock option programs as of October 2, 2005 and changes during the three-month period then ended, is presented below:

*(share amounts in thousands)*
| **                                                           ** | **Shares**            |                    | **Weighted-Average Exercise Price** |   | **Aggregate Intrinsic Value****(1) (in millions)**     |      | **Weighted-Average Contractual Life Remaining in Years** |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------|--------------------|-------------------------------------|---|--------------------------------------------------------|------|----------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                        |                       |                    |                                     |   |                                                        |      |                                                          |
| Outstanding at July 3, 2005                                                                                                                                                                                                                                                                                                                                            | 1,880,576             |     |                                     | $ | 3.96                                                   |      |                                                          |                              |  |                                      |
|                                                                                                                                                                                                                                                                                                                                                         | Granted at fair value | ---                |                      |   |                                                        | ---  |                                                          |  |  |  |  |
|                                                                                                                                                                                                                                                                                                                                                                        | Exercised             | (19,750            | )                                   |   |                                                        | 3.87 |                                                          |  |  |  |  |
|                                                                                                                                                                                                                                                                                                                                                                        | Expired               | ---                |                                     |   |           | ---  |                                                          |  |  |  |  |
|                                                                                                                                                                                                                                                                                                                                                                        | Forfeited             | (3,750             | )                                   |   |                                                        | 8.54 |                                                          |  |  |  |  |
|                                                                                                                                                                                                                                                                                                                                                                        |                       |                    |                                     |   |                                                        |      |                                                          |
| Outstanding at October 2, 2005                                                                                                                                                                                                                                                                                                                                         | 1,857,076             |                    |                                     |   | 3.95                                                   |      |                                                          | $ | 16.6 |  |  | 5.8 |
|                                                                                                                                                                                                                                                                                                                                                                        |                       |                    |                                     |   |                                                        |      |                                                          |
|                                                                                                                                                                                                                                                                                                                                                                        |                       |                    |                                     |   |                                                        |      |                                                          |
|                                                                                                                                                                                                                                                                                                                                                                        |                       |                    |                                     |   |                                                        |      |                                                          |
| Exercisable at October 2, 2005                                                                                                                                                                                                                                                                                                                                         | 1,604,258             |                    |                                     |   | 3.59                                                   |      |                                                          | $ | 14.9 |  |  | 5.5 |
|                                                                                                                                                                                                                                                                                                                                                                        |                       |                    |                                     |   |                                                        |      |                                                          |
|                                                                                                                                                                                                                                                                                                                                                                        |                       |                    |                                     |   |                                                        |      |                                                          |
|                                                                                                                                                                                                                                                                                                                                                                        |                       |                    |                                     |   |                                                        |      |                                                          |
|                                                                                                                                                                                                                                                                                                                                                         |                       |                    |                                     |   |                                                        |      |                                                          |

The intrinsic value of a stock option is the amount by which the current market value of the underlying stock exceeds the exercise price of the option.

The total intrinsic value of stock options exercised during the three months ended October 2, 2005 and October 3, 2004 was $220,000 and $124,000, respectively. The exercise period for all stock options generally may not exceed10 years from the date of grant. Stock option grants to individuals generally become exercisable over a service period of one to five years.

There were no stock options granted in the three months ended October 2, 2005.

*Performance Units*

The Company made awards under the LTIP in January 2005. The Company’s LTIP provides for the issuance of PUs, which will be settled in stock subject to the achievement of the Company’s financial goals. Settlementwill be made pursuant to a range of opportunities relative to net earnings. No settlement will occur for results below the minimum threshold and additional shares shall be issued if the performance exceeds the targeted goals. The compensation cost of PUs is subjectto adjustment based upon the attainability of the target goals.

Upon achievement of the performance goals, restricted shares are awarded in the employee’s name but are still subject to a two-year vesting condition. If employment is terminated (other than due to death or disability)prior to the vesting period, the shares are forfeited. Compensation expense is recognized over the performance period plus vesting period. The awards are treated as a liability award during the performance period and as an equity award once the performance targetsare settled.

During the three months ended October 2, 2005, the Company issued 56,257 shares of restricted stock, subject to the two-year vesting condition, for attainment of fiscal 2005 goals. In addition, the Company began recordingcompensation expense for the attainment of the fiscal 2006 goals.

The Company recorded compensation expense of $218,000 ($147,000 after tax) related to the LTIP in the quarter ended October 2, 2005, compared with zero expense in the quarter ended October 3, 2004.

The weighted-average grant date fair value of the restricted stock granted for the three months ended October 2, 2005 was $18.00.
| **12.** | **  ** | **LITIGATION AND CONTINGENCIES** |
|---------|------------------|----------------------------------|

In March 2004, the Company received notice from the Library of Congress (“LOC”) that the LOC seeks financial restitution in the amount of $1.8 million stemming from the Company’s production of audiocassettemachines during the period 1992 through 1996. The LOC claims the machines are defective.  The Company advised the LOC that the machines were tested and certified by an independent laboratory, were manufactured to the requirements of the contract and the allegedfailure could not be recreated under any usual and typical operating conditions. These issues are now in litigation in the Court of Federal Claims. The Company intends to vigorously defend its position. The discovery period commenced in September 2005, and trial willlikely be scheduled for 2007.

After consultation with legal counsel, it is management’s belief that the LOC claim against the Company will not prevail.
|                              | **LaBARGE, INC.**                                     |                             |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                          | **FORM 10-Q**                                         |                                                                                                                                                                    |
|                                                                                                                                                                          |                                                       |                                                                                                                                                                    |
| **Item 2.**                                                                                                                                                              |                                                       |                                                                                                                                                                    |
|                                                                                                                                                                          | **MANAGEMENT’S DISCUSSION AND ANALYSIS**        |                                                                                                                                                                    |
|                                                                                                                                                                          | **OF FINANCIAL CONTDITION AND RESULTS OF OPERATIONS** |                                                                                                                                                                    |

**Forward-Looking Statements**

*This report contains forward-looking statements that relate to future events or our future financial performance.  We have attempted to identify these statements by terminology including “believe,”“anticipate,” “plan,” “expect,” “estimate,” “intend,” “seek,” “goal,” “may,” “will,” “should,” “can,” “continue,” or thenegative of these terms or other comparable terminology.  These statements include statements about our market opportunity, our growth strategy, competition, expected activities, and the adequacy of our available cash resources.  These statements may befound in the section of this report entitled “Management’s Discussion and Analysis of Financial Condition and Results of Operations.”  Readers are cautioned that matters subject to forward-looking statements involve known and unknown risks anduncertainties, including the impact of increasing competition or deterioration of economic conditions in our markets; cutbacks in defense spending by the U.S. Government; loss of one or more large customers; our ability to replace completed and expired contracts on atimely basis; our ability to integrate recently acquired businesses; the outcome of litigation we may be party to; increases in the cost of raw materials, labor and other resources necessary to operate our business; the availability, amount, type and cost offinancing and any changes to that financing; and other factors that may cause our or our industry’s actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance orachievements expressed or implied by these forward-looking statements.  These statements are not guarantees of future performance and are subject to the risks, uncertainties and assumptions.*

**General**General Development of Business and Information about Business ActivityLaBarge, Inc. (“LaBarge” or the “Company”) is a Delaware corporation that manufactures and designs high-performance electronics and interconnect systems for customers in diverse technology-driven markets.  TheCompany’s core competencies are to provide complete electronic systems solutions, including the manufacturing, engineering and design of interconnect systems, circuit card assemblies and high-level assemblies for its customers’ specializedapplications.

The Company markets its services to customers who are looking for an engineering and manufacturing partner capable of developing and providing high-reliability electronic equipment, including products capable of performing inharsh environmental conditions, such as high and low temperatures, severe shock and vibration.  The Company serves customers in a variety of markets including defense, government systems, aerospace, natural resources, industrial and other commercialmarkets.  The Company’s engineering and manufacturing facilities are located in Arkansas, Missouri, Oklahoma, Pennsylvania and Texas.  The Company employs approximately 1,050 people, including approximately 890 people (of which 36 are engineers) whoprovide support for production activities and approximately 160 people who provide administrative support.

**Results of Operations - Three Months Ended October 2, 2005**

***Net Sales****(dollars in thousands)*
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | **Three Months Ended**                                                                                                                                       |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                                                                                                                              |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                            | **October 2,** | **           ** | October 3, |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | Change                                                                                                                                                       | **2005** |  | 2004 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                                                                                                                              |  |
| Net sales                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | (9.2)%                                                                                                                                                       | **$** | **39,639** |  | **    ** | $ | 43,634 |          |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                                                                                                                              |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                                                                                                                              |  |  |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                                                                                                                              |  |
|                                                                                                                                                                                |

Results for the quarter ended October 2, 2005 included 13 weeks of sales compared with 14 weeks of sales in the quarter ended October 3, 2004. This resulted in an approximately $3.0 million decline in sales.

The primary contributor to fiscal 2006 first-quarter revenues was shipments to defense customers which generated $16.4 million of sales versus $18.3 million in 2005. During the current year’s first quarter, LaBargeprovided cables and electronic assemblies for a variety of defense applications, including military aircraft, radar systems and shipboard programs.  In addition, shipments of capital equipment to natural resources customers, including downhole tools and miningsystems, represented $8.3 million of fiscal 2006 first-quarter revenues, compared with $8.3 million in the year-ago period.  Sales to industrial customers represented $7.2 million of fiscal 2006 first-quarter revenues, compared with $8.6 million in the year agoperiod.

Sales to the Company’s 10 largest customers represented 68% of total revenue in the first quarter of fiscal 2006 versus 69% for the same period of fiscal 2005.  The Company’s top three customersand the portion of total first-quarter sales they represented were as follows:  Owens-Illinois, Inc., 12%; Schlumberger Ltd., 11%, and Lockheed Martin Corp., 8%.

The backlog of unshipped orders at October 2, 2005 was $164.9 million, essentially unchanged when compared with  $164.9 million at July 3, 2005, and up from $149.5 million at October 3, 2004.  The growth in backlogis the result of a sales and marketing effort that focuses on needs of targeted large customers in a variety of industries. Approximately $31.3 million of the backlog at the quarter ended October 2, 2005 is scheduled to ship beyond the next 12 months pursuant to theshipment schedules contained in those contracts. This compares with $32.4 million at fiscal year end 2005.

***Gross Profit****(dollars in thousands)*
|                                                                               | **Three Months Ended** |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                        |
|                                                                                                                                                                                                                                                    | Change                 | **       ** | **October 2, 2005** | **        ** | October 3, 2004 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                        |  |  |  |
| Gross profit Gross margin                                                                                                                                                                                                                                                                                                                                                                                                                                                      | $                      | (542 1.0 | ) pts. | **       ** | **$** | **9,498 24.0** | **%** |  | $ | 10,040 23.0 | % |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                        |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                        |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                        |  |  |  |

The Company’s gross profit margin percentage generally runs between a range of 20 to 23%, and gross margin for the three months ended October 2, 2005 was slightly above this range.  Gross profit margin in thequarter ended October 2, 2005 benefited from employee medical costs that were $0.4 million lower than those in the quarter ended October 3, 2004. This was due to recent favorable claims experience versus prior year claims. In addition, the first quarter of fiscal2006 benefited from a one-time reduction of insurance expense of $0.2 million. This contributed 1.5 percentage points to margins in the first quarter of fiscal year 2006.

***Selling and Administrative Expenses****(dollars in thousands)*
|                                                                             | **Three Months Ended**                                                                                                          |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                                                                                                 |
|                                                                        |                      Change | **October 2, 2005** | **         ** | October 3, 2004 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                                                                                                 |  |
| Selling and administrative expenses                                                                                                                                                                                                                                                                                                                                                                                                  | $                                                                                                                               | (233 | )     | **$** | **5,625** |  | ** ** | $ | 5,858 |         |
| Percent of sales                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                             | 0.8 | pts. | **       ** | **14.2** | **%** | **   ** |           | 13.4 | % |
|                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                                                                                                 |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                                                                                                 |  |  |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                                                                                                 |  |

Selling and administrative expenses decreased over prior periods primarily as a result of a reduction in variable compensation of $0.4 million, a reduction of professional services of $0.2 million, offset by an increased cost due to expensing stock options of $0.2million and a $0.2 million increase in compensation costs due to wage inflation and headcount increase.

As a percent of sales, selling and administrative expenses increased on lower sales volume due to certain fixed costs.

***Interest Expense****(dollars in thousands)*
|                                                                               | **Three Months Ended** |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                        |
|                                                                                    | Change                 | **October 2, 2005** | **          ** | October 3, 2004 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                        |  |
|  Interest expense                                                                                                                                                                                                                                                                                                                                                                                                                                                         | $(110)                 | **$** | **404** | **        ** | **         ** | $ | 514 |           |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                        |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                        |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                        |  |

Interest expense decreased for the three months ended October 2, 2005.  The decrease reflects lower average debt levels.

Average interest rates during the period were 5.1%, compared with 4.2% in the comparable quarter.

***Pretax Earnings from Continuing Operations****(dollars in thousands)*
|                                                                                | **Three Months Ended** |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                        |
|                                                                           | Change                 | **October 2, 2005** | **   ** | October 3, 2004 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                        |  |
| Pretax earnings from continuing operations                                                                                                                                                                                                                                                                                                                                                                                                             | $                      | (255 | ) | **$** | **3,502** | **           ** | **    ** | $ | 3,757 |             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                        |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                        |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                        |  |

The decrease in pretax earnings for the quarter ended October 2, 2005, compared with the same period of fiscal 2005, is primarily attributable to lower gross profit of $0.5 million on a sales decrease of $4.0 million,offset by a decrease in selling and administrative expenses of $0.2 million and a $0.1 million decrease in interest expense.

***Tax Expense from Continuing Operations****(dollars in thousands)*
|                                                                                   | **Three Months Ended** |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                        |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | Change                 | **October 2, 2005** | **      ** | October 3, 2005 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                        |  |
| Tax expense from continuing operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | $                      | 17 |      | **$** | **1,471** | **   ** | **      ** | $ | 1,454 |    |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                        |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                        |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                        |  |

The income tax provision was 42%, due to additional Sub Part F income from the Company’s investment in its offshore captive insurance company. The effective income tax rate for the three-month period ended October 2,2005, excluding the impact of the additional Sub Part F income was 37.5%, compared with 38.7% for the three-month period ended October 3, 2004.  The decrease in the effective tax rate is attributable to the new manufacturing tax credit in the American JobsCreation Act of 2004.

**Financial Condition and Liquidity******The following table shows LaBarge’s equity and total debt positions:

***Stockholders’ Equity and Debt****(dollars in thousands)*
|                                                                                                                                                                                                                                                                                                                                        | **October 2,**                                                                                                                                                                                                                                                                     | July 3,                                                                                                                                                                                                                                                |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                               | **2005**                                                                                                                                                                                                                                                                           | 2005                                                                                                                                                                                                                                                   |
|                                                                                                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                        |
|                                                                                                                                                                                                                                                                                                                                                                                | **                                             ** |                                           |
| Stockholders’ equity                                                                                                                                                                                                                                                                                                                                                     | **         **                                                                                                                                                                                                                         | **$**                                                                                                                                                                                                                                                  | **56,600** |                 |          | $ | 53,830 |             |
| Debt                                                                                                                                                                                                                                                                                                                                                                           | **    **                                                                                                                                                                                                                                                       | **28,970**                                                                                                                                                                                                                                             | **     ** |     | 27,916 |              |
|                                                                                                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                        |
|                                                                                                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                        |

The Company’s continuing operations provided $1.5 million of net cash for the three months ended October 2, 2005.

***Senior Lender:***The Company entered into a senior secured loan agreement with a group of banks on February 17, 2004.  The following is a summary of the agreement:
|  •                   |   | A revolving credit facility up to $20.0 million, available for direct borrowings or letters of credit.  The facility is based on a borrowing base formula equal to the sum of 85% of eligible receivables and 35% of eligibleinventories. As of October 2, 2005, outstanding loans under the revolving credit facility were $3.5 million.  Letters of credit outstanding were $1.6 million, and $14.9 million was available. This credit facility matures on February 17, 2009.                                                                                                                                                                                                                                                                                                                                                                                                   |              |
|--------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------|
|       |   |                                                                                                                                                  |                                                                          |
|  •                   |   | A $25.0 million term loan amortized beginning May 2004, at a quarterly rate of $1.0 million, increasing to $1.25 million in May 2006 and increasing to $1.5 million in May 2007.  Final maturity is February2009.  As of October 2, 2005, the amount outstanding was $19.0 million.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                          |
|            |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                          |
|  •                   |        | On April 15, 2004, the Company entered into an Interest Rate Cap Agreement with a bank.  This Agreement caps the Company’s exposure to increases in LIBOR at 4% for a period of three years on a notional amountbeginning at $24.0 million and amortizing on a schedule that matches amortization of the $25.0 million term loan dated February 17, 2004.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                          |
|                                |        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                          |
|  •                   |        | Interest on both loans is at a percentage of prime or a stated rate over LIBOR based on certain ratios.  For the quarter ended October 2, 2005, the average rate was approximately 5.37%.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                          |
|       |   |                                                                                                                                                       |                                                                          |
|  •                   |   | Both loans are secured by substantially all the assets of the Company other than real estate.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                          |
|                           |        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                          |
|  •                   |        | Covenants and performance criteria consist of Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”) in relation to debt, EBITDA in relation to fixed charges, and minimum net worth.  TheCompany is in compliance with its borrowing agreement covenants as of October 2, 2005.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                                          |
|            |   |                                                                                                                                                                 |                                                                     |

***Other Long-term Debt:****Mortgage Loan:*The Company has a $6.4 million term loan secured by the Company’s headquarters building in St. Louis, Missouri.  The loan repayment schedule is based on a 25-year amortization with a final balloon payment due in October2009.  The balance at October 2, 2005 was $5.7 million.  Interest is at a percentage of prime or a stated rate over LIBOR based on certain ratios.  For the quarter ended October 2, 2005, the average rate was approximately 4.08%.

*****Industrial Revenue Bonds:*In July 1998, the Company acquired tax-exempt Industrial Revenue Bond financing in the amount of $1.3 million.  The debt is payable over 10 years with an interest rate of 5.28%.  This funding was used to expand the Berryville,Arkansas facility.  The outstanding balance at October 2, 2005 was $484,000.

*Capital Lease Obligations:*

In September 2005, the Company entered into a capital lease agreement to fund the purchase of machinery with a fair market value of $304,000. The lease is for five years with an interest rate of 6.11%. The obligationoutstanding at October 2, 2005 was $304,000.

The aggregate maturities of long-term obligations are as follows:*(dollars in thousands)*
| **Fiscal Year**               |
|-------------------------------|
|                               |
| 2007                          | ...............................................................  | $ | 3,601 |   |
| 2008                          | ...............................................................  |      | 5,725 |   |
| 2009                          | ...............................................................  |       | 6,483 |   |
| 2010                          | ...............................................................  |       | 4,862 |   |
| 2011                          | ...............................................................  |       | 4,782 |   |
| Thereafter                    | ...............................................................  |       | 17 |   |
|                               |
|     Total | ...............................................................  |  $ | 25,470 |   |
|                               |

Overall, management believes the Company’s availability of funds going forward from cash generated from operations and available bank credit should be sufficient to support the planned operations and capital expendituresof the Company’s business for the next two fiscal years.

At October 2, 2005, the total debt-to-equity ratio for the Company was .51 to 1, versus .53 to 1 at the end of fiscal 2005.

****

***Off-Balance Sheet Arrangements***The Company has no off-balance sheet arrangements.

***Critical Accounting Policies***The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions in certain circumstances that affect amountsreported in the accompanying consolidated financial statements.  In preparing these financial statements, management has made its best estimates and judgment of certain amounts included in the financial statements.  The Company believes there is alikelihood that materially different amounts would be reported under different conditions or using different assumptions related to the accounting policies described below.  Application of these accounting policies involves the exercise of judgment and use ofassumptions as to future uncertainties and, as a result, actual results could differ from these estimates.  The Company’s senior management discusses the accounting policies described below with the audit committee of the Company’s Board of Directorson a periodic basis.

The following discussion of critical accounting policies is intended to bring to the attention of readers those accounting policies that management believes are critical to the Company’s consolidated financial statementsand other financial disclosures.  It is not intended to be a comprehensive list of all of our significant accounting policies that are more fully described in Note 1 of the Notes to the Consolidated Financial Statements included in our 2005 Annual Report on Form10-K.

***Revenue Recognition and Cost of Sales***Revenue is generally recognized on the percentage-of-completion method based upon the units delivered.  The percentage-of-completion method gives effect to the most recent contract value and estimates of cost at completion. Whenappropriate, contract prices are adjusted for increased scope and other changes ordered or caused by the customer.  When percentage-of-completion is not appropriate, the Company recognizes revenue when title transfers, which is usually upon shipment. On a verylimited number of contracts, at a customers’ request, the Company will recognize revenue when ownership passes. As of October 2, 2005 and July 3, 2005, the Company has recognized revenue under these arrangements of $1.7 million and $2.0 million, respectively.The Company recognizes revenue for storage and other related services when the services are provided.

Management’s estimates of material, labor and overhead costs on long-term contracts are critical to the Company.  Since some contracts extend over a long period of time, revisions in cost during the progress of workhave the effect of adjusting current period earnings applicable to performance in prior periods.  When the current contract cost estimate indicates a loss, provision is made for the total anticipated loss on the period the loss becomes evident.

***Inventories***Inventories, which consist of materials, labor and manufacturing overhead, are carried at the lower of cost or market value. Inventory that has been held beyond specific time limits is automatically reserved. Inaddition, management regularly reviews inventory for obsolescence to determine whether any additional write-down is necessary.  Various factors are considered in making this determination, including expected program life, recent sales history, predicted trendsand market conditions.  If actual demand or market conditions are less favorable than those projected by management, additional inventory write-downs may be required.  For both the quarters ended October 2, 2005 and October 3, 2004, expense for obsolete orslow-moving inventory charged to income before income taxes was $0.1 million.

***Goodwill and Intangible Assets***The Company has adopted Statement of Financial Accounting Standard (“SFAS”) No. 142 “Goodwill and Other Intangible Assets.”  Under the provisions of this standard, intangible assets deemed to have indefinitelives and goodwill are not subject to amortization.  All other intangible assets are amortized over their estimated useful lives.  Goodwill and other intangible assets not subject to amortization are tested for impairment annually or more frequently ifevents or changes in circumstances indicate that the asset might be impaired.  This testing requires comparison of carrying values to fair values, and when appropriate, the carrying value of impaired assets is reduced to fair value.  During the fourthquarter of 2005, the Company completed its annual impairment test and determined that estimates of fair value are reasonable. Different assumptions regarding such factors as sales levels and price changes, labor and material cost changes, interest rates andproductivity could affect such valuations.

***New Accounting Pronouncements***In November 2004, the Financial Accounting Standards Board (“FASB”) issued SFAS No. 151, “Inventory Costs” (SFAS No. 151).  SFAS No. 151 requires that costs such as idle facility expense, freight handlingcosts and wasted material be recognized as current period charges, regardless of whether they are abnormal.  SFAS No. 151 is effective for LaBarge for inventory costs incurred after July 4, 2005.  Adoption of this pronouncement did not have a materialimpact on the Company’s financial statements.

During December 2004, the FASB issued SFAS No. 123R, “Share-Based Payment” (SFAS No. 123R) which requires companies to measure and recognize compensation expense for all stock-based payments at fair value. Stock-based payments include stock option grants and certain transactions under other Company stock plans.  SFAS No. 123R is effective for the first fiscal year beginning after June 15, 2005.  The Company has adopted SFAS No. 123R in the first quarter offiscal 2006.  The Company has determined that the impact of the adoption of SFAS No. 123R will reduce fiscal year 2006 net earnings by approximately $437,000.****

****

****
| **ITEM 3.**                                                                                                                                            | **Quantitative and Qualitative Disclosures About Market Risk**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|--------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **                        **   | **                                                                                                                                                       **                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|                                                                                                                                                        | *Foreign Currency Risk***No information has been included hereunder because the Company’s foreign sales in each of the three months ended October 2, 2005 and October 3, 2004 were less than 10% of total Company revenue.  All foreign contracts are paid inU.S. dollars and the Company is not significantly exposed to foreign currency translation.  However, if the significance of foreign sales grows, management will continue to monitor whether it would be appropriate to use foreign currency risk managementinstruments to mitigate any exposures.*Interest Rate Risk* As of October 2, 2005, the Company had $29.0 million in total debt.  Industrial revenue bonds totaling $484,000 have a fixed rate and are not subject to interest rate risk.  The interest rate on the remaining $28.5 million is subject to fluctuation. OnApril 15, 2004, the Company entered into an Interest Rate Cap Agreement with a bank.  This Agreement caps the Company's exposure to 90-day LIBOR at 4% for a period of three years on a notional amount beginning at $24.0 million and amortizing on a schedule thatmatches amortization of the $25.0 million term loan dated February 17, 2004. The additional interest cost to the Company if interest rates increased 1% would be approximately $96,000 for one year.                                                                                                                               |
| ** **                                                                                                                                             | ** **                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |  |
| **ITEM 4.        **                                                                                            | **Controls and Procedures**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | **                                  ** |
|                           | The Company’s Chief Executive Officer and President, and the Company’s Vice President, Chief Financial Officer and Secretary, have conducted an evaluation of the design and effectiveness the Company’sdisclosure controls and procedures, as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as of the end of the period covered by this report.

The Chief Executive Officer and Chief Financial Officer have concluded that the Company’s disclosure controls, procedures and systems are functioning effectively to provide reasonable assurance that the Company can meetits disclosure obligations.  The Company’s disclosure controls system is based upon a chain of financial and general business reporting lines that converge in the headquarters of the Company in St. Louis, Missouri.  The reporting process is designedto ensure that information required to be disclosed by the Company in the reports that it files with or submits to the Securities and Exchange Commission is recorded, processed, summarized and reported within the time periods specified in the Commission’s rulesand forms.

During our first fiscal quarter, there were no significant changes in internal controls over financial reporting identified in connection with the evaluation that have materially affected or that are reasonably likely tomaterially affect these controls. |

**PART II**

****

****
|  | **ITEM 2.** | **Unregistered Sales of Equity Securities and Use of Proceeds** |
|--|-------------|-----------------------------------------------------------------|
|  |             |                                                                 |
| **Repurchases:**                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                            |                                                                                                              |                    |                                            |                                      |                                                                                                        |              |                                                                                                                                                              |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------|--------------------|--------------------------------------------|--------------------------------------|--------------------------------------------------------------------------------------------------------|--------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **Period**                                                                                                                                                                                                                                                   |                                                                                                                                                                                                                                            | **Total Number of Shares (or Units) Purchased**                                                              |                    | **Average Price Paid per Share (or Unit)** |                                      | **Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs****(1)** |              | **Maximum Number (or Approximate Dollar Value) of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs**                                  |
|                                                                                                                                                                                                                                                              |                                                                                                                                                                                                                                            |                                                                                                              |                    |                                            |                                      |                                                                                                        |              |                                                                                                                                                              |
|                                            |                                                                                                                                                                                                                                            |                    |     |                                            |        |                   |              |                            |  |                                    |
|                                                                                                                                                                                                                                               | July 4 - August 3                                                                                                                                                                                                                          |                                                                                                              | ---                |                             |                                      |                                                                                                        | ---          |                                                                                                                                                              |  | --- |  |  |          | --- |  |
|                                                                                                                                                                                                                                                              |                                         |                                                                                                              |                    |                                            |                                      |                                                                                                        |    |                                                                                                                                                              |    |  |                                  |
|                                                                                                                                                                                                                                                              | August 4 - September 3                                                                                                                                                                                                                     |                                                                                                              | 5,000              |                                            |                                      | $                                                                                                      | 12.37        |                                                                                                                                                              |  | 5,000 |  |  |  | 995,000 |  |
|                                                                                                                                                                                                                                               |                                                                                                                                                                                                                                            |                                                                                                              |                    |                                            |                                      |                                                                                                        |              |                                                                                                                                                              |  |  |  |  |  |
|                                                                                                                                                                                                                                                              | September 4 - October 2                                                                                                                                                                                                                    |                                                                                                              | ---                |                                            |                                      |                                                                                                        | ---          |                                                                                                                                                              |  | --- |  |  |  | --- |  |
|                                                                                                                                                                                                                                                              |                                                                                                                                                                                                                                            |                                                                                                              |                    |                                            |                                      |                                                                                                        |              |                                                                                                                                                              |
|                                                                                                                                                                                                                                                              |                                                                                                                                                                                                                                            |                                                                                                              |                    |                                            |                                      |                                                                                                        |              |                                                                                                                                                              |  |  |  |  |
|                                                                                                                                                                                                                                                              |                                                                                                                                                                                                                                            |                                                                                                              |                    |                                            |                                      |                                                                                                        |              |                                                                                                                                                              |
|                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                            |                                                                                                              |                    |                                            |                                      |                                                                                                        |              |                                                                                                                                                              |  |  |  |  |

(1)  Shares repurchased under resolution of the Board of Directors dated August 24, 2005, authorizing repurchase of up to 1,000,000 shares. Authorization expires on August 24, 2006.
| ** **                                                                           | **           ** |                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                  |
|--------------------------------------------------------------------------------------|------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                      | **ITEM 6.**                                                            | **Exhibits**                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                                                                                                                                                                                                                                                                                                                                  |
|                |                                                                        |                                                                                |
|                                                                                      |                                                                        | 31.1                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | Certification by Chief Executive Officer pursuant to Exchange Act Rule 13a - 14(a) and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                          |
|                                                                                      |                                                                        | 31.2                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | Certification by Chief Financial Officer pursuant to Exchange Act Rule 13a - 14(a) and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                          |
|                                                                                 |                      | 32.1                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | Certification by Chief Executive Officer pursuant to 18 U.S. C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                              |
|                                                                                      |                                                                        | 32.2                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | Certification by Chief Financial Officer pursuant to 18 U.S. C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                                                                                              |
|                                                                                      | **      **                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                  |

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.LaBARGE, INC.Date:  November 9, 2005
| /S/DONALD H. NONNENKAMP         |
|---------------------------------|
|                                 |
| Donald H. Nonnenkamp            |
| Vice President                  |
| and Chief Financial Officer     |
| *(Principal Financial Officer)* |