| **UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q**

(Mark One)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **[X] Quarterly Report Pursuant to Section 13 or 15(d) of the**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| **     **                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | **Securities Exchange Act of 1934** |
| **     **                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | **For the quarterly period ended September 28, 2008** |
| **or**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |  |
| **[  ] Transition Report Pursuant to Section 13 or 15(d) of the**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| **     **                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | **Securities Exchange Act of 1934** |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | For the transition period from _________ to _________ |
| ****                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| Commission File Number:  1-5761                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| **                                                                                                                                                              ** |
| **LaBarge, Inc.**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | (Exact name of registrant as specified in its charter) |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                |  |                                 |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | Delaware |                              | 73-0574586 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | (State or Other Jurisdiction of Incorporation or Organization) |           | (I.R.S. Employer Identification Number) |              |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                       |  |                                                               |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | 9900 Clayton Road, St. Louis, Missouri |     | 63124 |      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | (Address of 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 90days.                                                       Yes[X]  No [  ]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company.  See the definitions of “large accelerated filer,”“accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.  (Check one):
|                                                                                                                                                                                                                                                                          | Large accelerated filer  [   ] |                                                                                                                                                                                                                                            | Accelerated filer  [X]                                                                                               |                                                                                                                                                  |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------|
|                                              | Non-accelerated filer  [   ]   |                                                                                                                                                                                                                                                                          | Smaller reporting company  [   ]                                                                           |                          |
|                                                                                                                                                                           | (Do not check if a smaller reporting company)      |                                              |                       |

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 30, 2008:  15,495,857 shares of common stock.

| **LaBarge, Inc.**                                                                                                                                                                                                                                                                                                                                      |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                   |
| **FORM 10-Q**                                                                                                                                                                                                                                                                                                                                          |
|                                                                                                                                                                                                                                                                                                                                                   |
| **For the Quarterly Period Ended September 28, 2008**                                                                                                                                                                                                                                                                                                  |
|                                                                                                                                                                                                                                                                                                                                                   |
| **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 Consolidated Financial Statements |  |
|                                                                                                                                                                           |
| **                **                                                                           | Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |  |
| **                **                                                                           |
|                                                                                                                                                                                | Item 3. | Quantitative and Qualitative Disclosures About Market Risk |  |
|                                                                                                                                                                           |  |
| **                **                                                                           | Item 4. | Controls and Procedures |  |
|                                                                                                                                                                           |
| **Part II**                                                                                                                                                                    |  | **Other Information** |  |
|                                                                                                                                                                           |
|                                                                                                                                                                                | Item 1A. | Risk Factors |
|                                                                                                                                                                                | Item 6. | Exhibits |  |
|                               |
| Signatures                                                                                                                                                                     |
|                                                                                                                                                                           |
|                                                                                                                                                                                |

PART I

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

***(amounts in thousands, except per share amounts)***
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                                |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **                                                                                                                **                   | **Three Months Ended**                                                                                                                                                                                                                                                                                                                                                               |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                                                                                                                                                                                                                                                                                                                                                      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                                                                                                                                                                                                                                                                                                                                                      | **                       ** |  |  |                          |  |
| **                                                                                                                   ** | ** **                                                                                                                                                                                                                                                                                                                                                                           | **September 28, 2008** | **  ** |   | September 30, 2007 |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                                                                                                                                                                                                                                                                                                                                                      |  |  |  |  |
| **Net sales**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                                                                      | **$** | **68,192** |        | $ | 59,190 |  |
| **Cost and expenses:**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                                                                                                                                                                                                                                                                                                                                                                      |  |  |  |  |  |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | Cost of sales                                                                                                                                                                                                                                                                                                                                                                        |   |  | **53,929** |        |  | 47,818 |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | Selling and administrative expense                                                                                                                                                                                                                                                                                                                                                   |   |  | **8,270** |  |   | 6,947 |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | Interest expense                                                                                                                                                                                                                                                                                                                                                                     |   |  | **158** |  |  | 427 |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | Other expense, net                                                                                                                                                                                                                                                                                                                                                                   |   |  | **10** |  |   | 10 |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                                                                                                                                                                                                                                                                                                                                                      |  |  |  |  |
| Earnings before income taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                 |  | **5,825** |  |  | 3,988 |  |
| Income tax expense                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                      |  | **2,156** |  |  | 1,468 |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                                                                                                                                                                                                                                                                                                                                                      |  |  |  |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                                                                                                                                                                                                                                                                                                                 |  |  |  |  |
| **Net earnings**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                                                                                                                                                                                 | **$** | **3,669** |  | $ | 2,520 |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                                                                                                                                                                                                                                                                                                                                                      |  |  |  |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                                                                                                                                                                                                                                                                                                                                                      |  |  |  |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                                                                                                                                                                                                                                                                                                                                                      |  |  |  |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| **Basic net earnings per common share**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                                                                                                      | **$** | **0.24** |  | $ | 0.17 |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                                                                                                                                                                                                                                                                                                                                                      |  |  |  |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| **Average common shares outstanding**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                 |  | **15,234** |  |   | 15,200 |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                                                                                                                                                                                                                                                                                                                                                      |  |  |  |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                                                                                                                                                                                                                                                                                                                                                      |  |  |  |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                                                                                                                                                                                                                                                                                                                                                      |  |  |  |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| **Diluted net earnings per common share**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                                                                                                                                                                                                                                                                                                                 | **$** | **0.23** |       | $ | 0.16 |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                                                                                                                                                                                                                                                                                                                                                      |  |  |  |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| **Average diluted common shares outstanding**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                                                                      |  | **16,090** |  |  | 16,018 |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                                                                                                                                                                                                                                                                                                                                                      |  |  |  |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                                                                                                                                                                                                                                                                                                                                                      |  |  |  |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                                                                                                                                                                                                                                                                                                                                                      |  |  |  |  |

See accompanying notes to consolidated financial statements.

LaBARGE, INC.CONSOLIDATED BALANCE SHEETS***(amounts in thousands, except per share amounts)***
| **   **                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | ** **                                                                                                                                                              | **September 28, 2008**                                                                                                                                                                                                                                                                                                               |                                                                                          |                                                  | June 29, 2008                                                                                                        |                                                                                                                                                  |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------|--------------------------------------------------|----------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                                                                                                         |                                                                                                                                                                                                                                                                                                                                      |                                                                                          |                                                  |                                                                                                                      |
| **                                                                                                                    ** |                                                                                                                                                                         |                                                                                                                                                                                                                                                                                                                                      | *(unaudited)*                                                                            |          | *                   * |                                                                                                                                                  |
| **ASSETS**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                                                                                                    |                                                                                                                                                                                                                                                                                                                                      |                                                                                          |                                             |                                                                                                                      |                                                                                                                                             |
| **Current assets:**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                    |                                                                                                                                                                                                                                                                                                                                      |                    |                                                  |                                                                                                                 |                          |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | Cash and cash equivalents                                                                                                                                               |                                                                                                                                                                                                                                                                                                                                 | **$**                                                                                    | **953**                                          |                                                                                                                      | $                                                                                                                                                | 1,646 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | Accounts and other receivables, net                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                 |                                                                                          | **36,590**                                       |                                                                                                                      |                                                                                                                                             | 40,778 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | Inventories                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                 |                                                                                          | **65,538**                                       |                                                                                                                      |                                                                                                                                                  | 66,927 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | Prepaid expenses                                                                                                                                                        |                                                                                                                                                                                                                                                                                                                                 |                                                                                          | **1,322**                                        |                                                                                                                      |                                                                                                                                             | 1,245 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | Deferred tax assets, net                                                                                                                                                |                                                                                                                                                                                                                                                                                                                                 |                                                                                          | **2,406**                                        |                                                                                                                      |                                                                                                                                                  | 1,960 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                                                                                                         |                                                                                                                                                                                                                                                                                                                                      |                                                                                          |                                                  |                                                                                                                      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | **Total current assets**                                                                                                                                                |                                                                                                                                                                                                                                                                                                                                 |                                                                                          | **106,809**                                      |                                                                                                                      |                                                                                                                                                  | 112,556 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                                                                                                         |                                                                                                                                                                                                                                                                                                                                      |                                                                                          |                                                  |                                                                                                                      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                    |                                                                                                                                                                                                                                                                                                                                      |                                                                                          |                                                  |                                                                                                                 |
| Property, plant and equipment, net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                    |                                                                                                                                                                                                                                                                                                                                      | **16,532**                                                                               |                                                  |                                                                                                                      | 17,248                                                                                                                                           |   |
| Intangible assets, net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                                                    |                                                                                                                                                                                                                                                                                                                                      | **1,364**                                                                                |                                                  |                                                                                                                 | 1,548                                                                                                                                            |   |
| Goodwill, net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                                                                                                                         |                                                                                                                                                                                                                                                                                                                                      | **24,292**                                                                               |                                                  |                                                                                                                 | 24,292                                                                                                                                           |  |
| Deferred tax asset, net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                                                                                                                                         |                                                                                                                                                                                                                                                                                                                                      | **210**                                                                                  |                                                  |                                                                                                                      | ---                                                                                                                                              |  |
| Other assets, net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                    |                                                                                                                                                                                                                                                                                                                                      | **4,907**                                                                                |                                                  |                                                                                                                 | 4,828                                                                                                                                            |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                                                                                                         |                                                                                                                                                                                                                                                                                                                                      |                                                                                          |                                                  |                                                                                                                      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | **Total assets**                                                                                                                                                        |                                                                                                                                                                                                                                                                                                                                 | **$**                                                                                    | **154,114**                                      |                                                                                                                      | $                                                                                                                                                | 160,472 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                                                                                                         |                                                                                                                                                                                                                                                                                                                                      |                                                                                          |                                                  |                                                                                                                      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                                                                                                         |                                                                                                                                                                                                                                                                                                                                      |                                                                                          |                                                  |                                                                                                                      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                                                                                                         |                                                                                                                                                                                                                                                                                                                                      |                                                                                          |                                                  |                                                                                                                      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| **LIABILITIES AND STOCKHOLDERS’ EQUITY**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                                                                                    |                                                                                                                                                                                                                                                                                                                  |
| **Current liabilities:**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                    |                                                                                                                                                                                                                                                                                                                                      | **              ** |                                                  |                                                                                                                      |                                                                                                |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | Short-term borrowings                                                                                                                                                   |                                                                                                                                                                                                                                                                                                                                      | **$**                                                                                    | **1,200**                                        |                                                                                                                      | $                                                                                                                                                | 10,500 |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | Current maturities of long-term debt                                                                                                                                    |                                                                                                                                                                                                                                                                                                                                 |                                                                                          | **2,138**                                        |                                                                                                                      |                                                                                                                                                  | 4,682 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | Trade accounts payable                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                 |                                                                                          | **20,697**                                       |                                                                                                                      |                                                                                                                                             | 22,684 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | Accrued employee compensation                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                 |                                                                                          | **11,347**                                       |                                                                                                                      |                                                                                                                                             | 13,494 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | Other accrued liabilities                                                                                                                                               |                                                                                                                                                                                                                                                                                                                                 |                                                                                          | **4,626**                                        |                                                                                                                      |                                                                                                                                             | 2,552 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | Cash advances                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                      |                                                                                          | **11,247**                                       |                                                                                                                      |                                                                                                                                             | 11,897 |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                                                                                                         |                                                                                                                                                                                                                                                                                                                                      |                                                                                          |                                                  |                                                                                                                      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | **Total current liabilities**                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                 |                                                                                          | **51,255**                                       |                                                                                                                      |                                                                                                                                                  | 65,809 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                                                                                                         |                                                                                                                                                                                                                                                                                                                                      |                                                                                          |                                                  |                                                                                                                      |
| Long-term advances from customers for purchase of materials                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                    |                                                                                                                                                                                                                                                                                                                                      | **46**                                                                                   |                                                  |                                                                                                                      | 622                                                                                                                                              |   |
| Deferred gain on sale of real estate and other liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                                                                                                         |                                                                                                                                                                                                                                                                                                                                      | **2,003**                                                                                |                                                  |                                                                                                                      | 2,125                                                                                                                                            |  |
| Long-term debt                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                                                                                    |                                                                                                                                                                                                                                                                                                                                      | **4,914**                                                                                |                                                  |                                                                                                                      | 447                                                                                                                                              |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                                                                                                         |                                                                                                                                                                                                                                                                                                                                      |                                                                                          |                                                  |                                                                                                                      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| **Stockholders’ equity:**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                                                                                                    |                                                        |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | Common stock, $.01 par value.  Authorized 40,000,000 shares; 15,773,253 issued at September 28, 2008 and June 29, 2008, respectively, including shares in treasury |                                                                                                                                                                                                                                                                                                                                 |                                                                                          | **158**                                          |                                                                                                                      |                                                                                                                                             | 158 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | Additional paid-in capital                                                                                                                                              |                                                                                                                                                                                                                                                                                                                                 |                                                                                          | **16,107**                                       |                                                                                                                      |                                                                                                                                             | 16,547 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | Retained earnings                                                                                                                                                       |                                                                                                                                                                                                                                                                                                                                 |                                                                                          | **82,270**                                       |                                                                                                                      |                                                                                                                                                  | 78,601 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | Less cost of common stock in treasury, shares of 282,771 at September 28, 2008 and 419,503 at June 29, 2008                                                             |                                                                                                                                                                                                                                                                                                                                      | **(2,639**                                                                               | **)**                                            | (3,837                                                                                                               | )                                                                                                                                                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                                                                                                         |                                                                                                                                                                                                                                                                                                                                      |                                                                                          |                                                  |                                                                                                                      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | **Total stockholders’ equity**                                                                                                                                    |                                                                                                                                                                                                                                                                                                                                 |                                                                                          | **95,896**                                       |                                                                                                                      |                                                                                                                                             | 91,469 |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                                                                                                         |                                                                                                                                                                                                                                                                                                                                      |                                                                                          |                                                  |                                                                                                                      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                                                                                                         | **Total liabilities and stockholders’ equity**                                                                                                                                                                                                                                                                                 |                                                                                     | **$**                                            | **154,114**                                                                                                          |                                                                                                                                                  | $ | 160,472 |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                                                                                                         |                                                                                                                                                                                                                                                                                                                                      |                                                                                          |                                                  |                                                                                                                      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                                                                                                         |                                                                                                                                                                                                                                                                                                                                      |                                                                                          |                                                  |                                                                                                                      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                                                                                                         |                                                                                                                                                                                                                                                                                                                                      |                                                                                          |                                                  |                                                                                                                      |

See accompanying notes to consolidated financial statements.

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

***(amounts in thousands)***
| **                                                                                         **       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | **Three Months Ended**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                       |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                            |  |  |
| **                                                                                          ** | ** **                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | **September 28, 2008**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | ** **                                                                                                                                                                                 | September 30, 2007 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                            |  |  |
| **Cash flows from operating activities:**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                                                                                                                       |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Net earnings                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | **      **                                                                                                                                                   | **$** | **3,669** | **         ** |         | $ | 2,520 |           |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Adjustments to reconcile net cash provided by operating activities:                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                          |                                                                                                                                                                                       |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Depreciation and amortization                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                                                                                                                       | **1,380** |  |              | 1,260 |  |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | Amortization of deferred gain on sale of real estate                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                            | **(119** | **)** |  | (120 | ) |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | Stock-based compensation                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                            | **572** |  |          | 283 |  |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | Other than temporary impairment of investment                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                            | **13** |  |  | 13 |  |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Deferred taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                       | **(657** | **)** |   | 71 |  |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Other                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                       | **---** |  |   | 2 |  |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Changes in assets and liabilities, net of acquisitions:                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                       |  |  |   |  |  |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Accounts and notes receivable, net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                                                                                                       |   | **4,188** |  |  | 724 |  |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Inventories                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                                                                                                                                                       |   | **1,389** |  |  | (1,597 | ) |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Prepaid expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                                                                                                                                                                       |   | **(77** | **)** |  | 861 |  |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | Trade accounts payable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                            |  | **(2,104** | **)** |  | 1,149 |  |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Accrued liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                                                                                                                       |   | **232** |  |  | (335 | ) |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | Advance payments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                                                                                                                                                                            |  | **(1,226** | **)** |  | 255 |  |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                            |  |  |
| **Net cash provided by operating activities**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | **7,260**                                                                                                                                                                                  |  |        | 5,086 |  |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                            |  |  |
| **    **                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| **Cash flows from investing activities:**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Additions to property, plant and equipment                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                        | **(281** | **)** |  | (648 | ) |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | Proceeds from disposal of property and equipment                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                            | **---** |  |  | 18 |  |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Additions to other assets and intangibles                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                       | **(173** | **)** |  | (175 | ) |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                            |  |  |
| **Net cash (used) by investing activities**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | **(454**                                                                                                                                                                                   | **)** |  | (805 | ) |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                            |  |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| **Cash flows from financing activities:**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                 |  |  |                      |  |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | Borrowings on revolving credit facility                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                            | **22,025** |  |  | 19,000 |  |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | Payments of revolving credit facility                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                            | **(27,825** | **)** |  | (20,225 | ) |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | Repayments of long-term debt                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                            | **(1,577** | **)** |  | (1,574 | ) |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Issuance of treasury stock                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                       | **185** |  |  | 287 |  |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Purchase of treasury stock                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                       | **(307** | **)** |  | (265 | ) |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                            |  |  |
| **                                                                                         **       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | **                      **                                                   |  |  |                        |  |   |
| **Net cash (used) by financing activities**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | **(7,499**                                                                                                                                                                                 | **)** |  | (2,777 | ) |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                            |  |  |
| **Net (decrease) increase in cash and cash equivalents**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | **(693**                                                                                                                                                                                   | **)** |  | 1,504 |  |   |
| **Cash and cash equivalents at beginning of period**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | ** **                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | **1,646**                                                                                                                                                                                  |  |  | 392 |  |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                            |  |  |
| **Cash and cash equivalents at end of period**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | **      **                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | **$**                                                                                                                                                                                      | **953** | **           ** |       | $ | 1,896 |             |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                            |  |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                            |  |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                            |  |  |

See accompanying notes to consolidated financial statements.

|    | **LaBarge, Inc****.**                          |   |
|--------------|------------------------------------------------|--------|
|              | **NOTES TO CONSOLIDATED FINANCIAL STATEMENTS** |        |
|              | (Unaudited)                                    |        |

| **1.** | **  ** | **CONSOLIDATED FINANCIAL STATEMENTS -- BASIS OF PRESENTATION** |
|--------|------------------|----------------------------------------------------------------|

The consolidated balance sheet at September 28, 2008, and the related consolidated statements of income and cash flows for the three months ended September 28, 2008 and September 30, 2007, 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 position and the results of operations and cash flows for the aforementioned periods, have beenmade.

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 June 29, 2008.

**Recently Adopted Accounting Standards**In September 2006, the Financial Accounting Standards Board (“FASB”) issued Statement of Financial Accounting Standards (“SFAS”) No. 157, “Fair Value Measurements” (“SFAS No. 157”), to clarifythe definition of fair value, establish a framework for measuring fair value and expand the disclosures on fair value measurements. On June 30, 2008, the company adopted the provision of SFAS No. 157. The adoption did not have a material impact on its consolidatedfinancial statements. The Company will defer the adoption of SFAS No. 157 for its nonfinancial assets and nonfinancial liabilities until the year ended June 27, 2010, as permitted under FASB Staff Position 157-2, “Effective Date of FASB Statement No.157.”

In February 2007, the FASB issued SFAS No. 159, “The Fair Value Option for Financial Assets and Financial Liabilities” (“SFAS No. 159”), to permit all entities to choose to elect, at specified electiondates, to measure eligible financial instruments at fair value. An entity shall report unrealized gains and losses, on items for which the fair value option has been elected, in earnings at each subsequent reporting date, and recognize upfront costs and fees relatedto those items in earnings as incurred and not deferred. SFAS No. 159 applies to fiscal years beginning after November 15, 2007, with early adoption permitted for an entity that has also elected to apply the provisions of SFAS No. 157. On June 30, 2008, the Companyadopted the provisions of SFAS No. 159. The adoption did not have a material impact on its consolidated financial statements when it became effective for the fiscal year ending June 28, 2009.

In September 2006, the FASB’s EITF reached a consensus on EITF Issue No. 06-4, “Accounting for Deferred Compensation and Postretirement Benefits Aspects of Endorsement Split-Dollar Life InsuranceArrangements” (“EITF 06-4”).  This addresses only endorsement split-dollar life insurance arrangements that provide a benefit to an employee that extends to postretirement periods. EITF 06-04 was adopted on June 30, 2008. Adopting theprovisions of EITF 06-4 did not have a material impact on the Company’s consolidated financial statements.
| **2.** | **  ** | **SALES AND NET SALES** |
|--------|------------------|-------------------------|

Sales and net sales consist of the following:*(in thousands)*

**
| **                                                                    ** | **Three Months Ended** |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                              |                        |
| ** **                                                                                                                                                                                                                                                                                                                                                                                                                   | **September 28,**      |          | September 30, |
| ** **                                                                                                                                                                                                                                                                                                                                                                                                                   | **2008**               |             | 2007 |
|                                                                                                                                                                                                                                                                                                                                                                                                                              |
| Sales                                                                                                                                                                                                                                                                                                                                                                                                                        | ** **             | **$** | **68,470** |          |                 | $ | 59,349 |  |
| Less sales discounts                                                                                                                                                                                                                                                                                                                                                                                                         |                        | **278** |  | **     ** |  | 159 |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                              |
| Net sales                                                                                                                                                                                                                                                                                                                                                                                                                    | ** **             | **$** | **68,192** |  |  | $ | 59,190 |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                              |
|                                                                                                                                                                                                                                                                                                                                                                                                                              |                        |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                              |

**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.
| **3.** | **  ** | **ACCOUNTS AND OTHER RECEIVABLES** |
|--------|------------------|------------------------------------|

Accounts and other receivables consist of the following:*(in thousands)*
| **                                                                    ** | **Three Months Ended** |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                              |                        |
| ** **                                                                                                                                                                                                                                                                                                                                                                                                                   | **September 28,**      |          | June 29, |
| ** **                                                                                                                                                                                                                                                                                                                                                                                                                   | **2008**               |             | 2008 |
|                                                                                                                                                                                                                                                                                                                                                                                                                              |
| Billed shipments                                                                                                                                                                                                                                                                                                                                                                                                             | ** **             | **$** | **36,682** |          |              | $ | 40,105 |  |
| Less allowance for doubtful accounts                                                                                                                                                                                                                                                                                                                                                                                         |                        | **318** |  | **     ** |  | 252 |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                              |
| Trade receivables, net                                                                                                                                                                                                                                                                                                                                                                                                       |                        | **36,364** |  | **     ** |  | 39,853 |  |
| Other current receivables                                                                                                                                                                                                                                                                                                                                                                                                    |                        | **226** |  |  |  | 925 |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   Total                                                                                                                                                                                                                                                                                                                                                                                                            | ** **             | **$** | **36,590** |  |  | $ | 40,778 |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                              |
|                                                                                                                                                                                                                                                                                                                                                                                                                              |                        |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                              |

At September 28, 2008, the amounts due from the three largest accounts receivable debtors and the percentage of total accounts receivable represented by those amounts were $8.6 million (23%), $3.8 million (10%), and$3.1 million (8%).  This compares with $10.3 million (26%), $3.4 million (9%), and $2.9 million (7%) at June 29, 2008.

At September 28, 2008, the second largest accounts receivable debtor, with a balance of $3.8 million, includes $3.6 million which is past due.  The Company is in discussions with this customer to develop a paymentplan, the success of which is contingent on the customer raising additional capital. If the customer is able to raise additional equity, the Company anticipates that the receivables outstanding as of September 28, 2008 will be paid in full. If the customer is unableto raise additional equity, the Company may not collect the receivables, which could adversely affect the Company’s operations. As of September 28, 2008, the Company’s allowance for doubtful accounts includes $79,000 associated with this customerrelated to disputed invoices which have been outstanding for more than one year.  The Company’s allowance for doubtful accounts does not include any other amounts for this customer.

At June 29, 2008, other current receivables included an income tax receivable of $778,000.
| **4.** | **  ** | **INVENTORIES** |
|--------|------------------|-----------------|

Inventories consist of the following:*(in thousands)*
|   |                                                                           |                                            | **September 28,** |                     | June 29, |                            |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------|-------------------|--------------------------------------------------------------------------------------|----------|--------------------------------------------------------------------|
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                      | **2008**          |                                                                                      | 2008     |                                                                    |
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                      |                   |                                                                                      |          |                                                                    |
|        | Raw materials                                                                                                                                                                                                                                                                                                                                                                                                                                          | **        ** | **$**             | **46,952**                                                                           |          |             | $ | 47,221 |  |
|        | Work in progress                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                      | **18,586**        |                | 19,706   |                                                                    |
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                      |                   |                                                                                      |          |                                                                    |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                        | **       **       | **$**             | **65,538**                                                                           |          |                  | $ | 66,927 |  |
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                      |                   |                                                                                      |          |                                                                    |
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                      |                   |                                                                                      |          |                                                                    |
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                      |                   |                                                                                      |          |                                                                    |

For the three months ended September 28, 2008 and September 30, 2007, expense for obsolete or slow-moving inventory charged to income before taxes was $597,000 and $317,000, respectively.

The Company’s inventory balance at September 28, 2008 included $3.8 million related to a contract with a customer who has deferred its production schedule. The inventory value will be realizable if this customer is ableto resume its production schedule which, in part, is contingent upon the customer’s ability to raise additional capital. If the customer is unable to resume its production schedule, the Company may not recover the full value of the inventory related to thiscustomer. No provision was recorded for this inventory as of September 28, 2008.
| **5.** | **  ** | **INTANGIBLE ASSETS, NET** |
|--------|------------------|----------------------------|

Intangible assets, net, is summarized as follows:*(in thousands)*
|          |                                                                                                                                                                                                                                                                                                                                                                       |                    |           |     | **September 28,** |                       |      |                  | June 29, |      |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------|-----------|--------------------|-------------------|--------------------------------------|--------------------------|--------------------------------------|----------|--------------------------|
|               |                                                                     |                                                                                                              | **2008**  |                    |                   |                                      | 2008                     |                                      |
|                    |                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                              |           |                    |
|                    | Software                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                          | **$**     | **4,141**          |                   |                                      | $                        | 4,090                                |          |
|                    | Less accumulated amortization                                                                                                                                                                                                                                                                                                                                                                                      |                                                                                     | **3,551** |                    |              |        | 3,457                    |        |
|                    |                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                              |           |                    |
|          | Net software                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                              |           | **590**            |                   |                                      |                          | 633                                  |          |
|                    |                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                              |           |                    |
|                    | Customer list                                                                                                                                                                                                                                                                                                                                                                                                      |                                                                                                              | **3,400** |                    |                   |                                      | 3,400                    |                                      |
|                    | Less accumulated amortization                                                                                                                                                                                                                                                                                                                                                                                      |                                                                                                              | **2,626** |                    |                   |                                      | 2,485                    |                                      |
|                    |                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                              |           |                    |
|          | Net customer list                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                              | **774**   |                    |                   |                                      | 915                      |                                      |
|                    |                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                              |           |                    |
|     | Total intangible assets, net                                                                                                                                                                                                                                                                                                                                                                                       | **$**                                                                                                        | **1,364** |                    |                   | $                                    | 1,548                    |                                      |
|                    |                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                              |           |                    |
|                    |                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                              |           |                    |                   |                                      |                          |                                      |          |                          |
|                    |                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                              |           |                    |
|                    |                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                              |           |                    |                   |                                      |                          |                                      |          |                          |

Intangibles are amortized over a three-to-six-year period.  Amortization expense was $266,000 for the three months ended September 28, 2008, compared with $281,000 for the three months ended September 30,2007.

The Company anticipates that amortization expense will approximate $1.1 million for fiscal year 2009, $0.9 million for fiscal year 2010, $0.5 million for fiscal year 2011, $0.4 million for fiscal year 2012 and $0.4 million forfiscal year 2013.
| **6.** | **  ** | **GOODWILL** |
|--------|------------------|--------------|

Goodwill is summarized as follows:*(in thousands)*
|    |                                                                          | **September 28,**  |     |            |      | June 29,           |     |
|--------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------|--------------------|--------------------------------|--------------------------|--------------------|--------------------|
|         |                                                                                                                                                                                                                                                                                                                                                                                                                                             |                    |                    |                                | **2008**                 |                    |                    |  | 2008 |  |
|              |                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                    |                    |                                |
|         | Goodwill                                                                                                                                                                                                                                                                                                                                                                                                                                         | **$**              | **24,492**         |       |                | $                  | 24,492             |             |
|              | Less accumulated amortization                                                                                                                                                                                                                                                                                                                                                                                                                    |     | **200**            |                                |                          |     | 200                |  |
|              |                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                    |                    |                                |
|              |   Net goodwill                                                                                                                                                                                                                                                                                                                                                                                                                         |                    | **$**              | **24,292**                     |                          |                    | $                  | 24,292 |  |
|              |                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                    |                    |                                |
|              |                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                    |                    |                                |                          |                    |                    |  |  |  |
|              |                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                    |                    |                                |
|              |                                                                                                                                                                                                                                                                                                                                                                                                                                             |                    |                    |                                |                          |                    |                    |  |  |  |

There were no changes in the carrying amount of goodwill for the fiscal quarter ended September 28, 2008.
| **7.** | **  ** | **OTHER ASSETS** |
|--------|------------------|------------------|

Other assets is summarized as follows:*(in thousands)*
|    |                                                                            | **September 28,**                                |     |            |      | June 29,           |     |
|--------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------|--------------------|--------------------------------|--------------------------|--------------------|--------------------|
|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                  |                    |                                | **2008**                 |                    |                    |  | 2008 |  |
|              |                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                  |                    |                                |
|         | Cash value of life insurance                                                                                                                                                                                                                                                                                                                                                                                                                                 | **$**                                            | **4,724**          |       |                | $                  | 4,612              |             |
|              | Deposits, licenses and other, net                                                                                                                                                                                                                                                                                                                                                                                                                            |                                   | **98**             |                                |                          |     | 112                |  |
|              | Securities held for sale                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                  | **13**             |                                |                          |                    | 26                 |  |
|              | Deferred financing costs, net                                                                                                                                                                                                                                                                                                                                                                                                                                |          |                    | **36**                         |                          |                    |                    | 42 |  |
|              | Other                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                  |                    | **36**                         |                          |                    |                    | 36 |  |
|              |                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                  |                    |                                |
|              |   Total                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                  | **$**              | **4,907**                      |                          |                    | $                  | 4,828 |  |
|              |                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                  |                    |                                |
|              |                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                  |                    |                                |                          |                    |                    |  |  |  |
|              |                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                  |                    |                                |
|              |                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                  |                    |                                |                          |                    |                    |  |  |  |
| **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)*
|    |                                                                            | **September 28,** |                                                                     |      |      | June 29, |                                                                                                           |
|--------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------|------------------------------------------------------------------------------------|--------------------------|--------------------------|----------|--------------------------------------------------------------------------------------------------------------------------|
|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                   |                                                                                    |                          | **2008**                 |          |                                                                                                                          |  | 2008 |  |
|              |                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                   |                                                                                    |                          |
|              | **Short-term borrowings:**                                                                                                                                                                                                                                                                                                                                                                                                                                   |                   | **             ** |                          |                          |          |                                                              |  |
|              |  Revolving credit agreement:                                                                                                                                                                                                                                                                                                                                                                                                                            |                   |                                                                                    |                          |                          |          |                                                                                                                          |  |
|              |   Balance at quarter-end                                                                                                                                                                                                                                                                                                                                                                                                                           | **$**             | **1,200**                                                                          |                          |                          | $        | 10,500                                                                                                                   |  |
|              |   Interest rate at quarter-end                                                                                                                                                                                                                                                                                                                                                                                                                     |                   | **4.23**                                                                           | **%**                    |                          |          | 3.83                                                                                                                     | % |
|              |   Average amount of short-term borrowings                                                                                                                                                                                                                                                                                                                                                                                                          | **  **  |                                                                                    |                          |                          |          |                                                                                                                          |  |
|              |    outstanding during period                                                                                                                                                                                                                                                                                                                                                                                                                  | **$**             | **6,146**                                                                          |                          |                          | $        | 14,764                                                                                                                   |  |
|              |   Average interest rate for period                                                                                                                                                                                                                                                                                                                                                                                                                 |                   | **4.05**                                                                           | **%**                    |                          |          | 5.79                                                                                                                     | % |
|              |   Maximum short-term borrowings at                                                                                                                                                                                                                                                                                                                                                                                                                 |                   |                                                                                    |                          |                          |          |                                                                                                                          |  |
|              |    any month-end                                                                                                                                                                                                                                                                                                                                                                                                                              | **$**             | **5,875**                                                                          |                          |           | $        | 19,025                                                                                                                   |  |
|              |                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                   |                                                                                    |                          |
|              |                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                   |                                                                                    |                          |                          |          |                                                                                                                          |  |
|              |                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                   |                                                                                    |                          |
|              | **Senior long-term debt:**                                                                                                                                                                                                                                                                                                                                                                                                                                   |                   |                                                                                    |                          |                          |          |                      |  |
|              |  Senior lender:                                                                                                                                                                                                                                                                                                                                                                                                                                         |                   |                                                                                    |                          |                          |          |                                                                                                                          |  |  |
|              |    Term loan                                                                                                                                                                                                                                                                                                                                                                                                                                  |                   | **$**                                                                              | **6,500**                |                          |          | $                                                                                                                        | 4,500 |  |
|         |  Other                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                   | **552**                                                                            |                          |                          |          | 629                                                                                                                      |  |
|              |                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                   |                                                                                    |                          |
|         | Total senior long-term debt                                                                                                                                                                                                                                                                                                                                                                                                                                  |                   | **7,052**                                                                          |                          |                          |          | 5,129                                                                                                                    |  |
|              | Less current maturities                                                                                                                                                                                                                                                                                                                                                                                                                                      |                   |                                                                                    | **2,138**                |                          |          |                                                                                                                          | 4,682 |  |
|              |                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                   |                                                                                    |                          |
|              | Long-term debt, less current maturities                                                                                                                                                                                                                                                                                                                                                                                                                      | **$**             | **4,914**                                                                          |                          |                          | $        | 447                                                                                                                      |  |
|              |                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                   |                                                                                    |                          |
|              |                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                   |                                                                                    |                          |                          |          |                                                                                                                          |  |  |  |
|              |                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                   |                                                                                    |                          |
|              |                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                   |                                                                                    |                          |                          |          |                                                                                                                          |  |  |  |

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.

The Company entered into a senior loan agreement on February 17, 2004, which was amended on October 3, 2008. The amended agreement extended the credit facility for two years. Remaining termsare substantially similar to the Company’s existing bank credit facility.

The amended agreement allows the Company to borrow up to a $10.0 million term loan. This new credit facility resulted in the Company paying down short-term borrowings with the proceeds from the term loan. In accordance with SFAS No.6, “Classification of Short-term Obligations Expected to be Refinanced, an amendment of ARB No. 43,”(“SFAS No. 6”) the Company classified those current obligations, $3.5 million, that have been refinanced on a long-term basis as long-term debtin the consolidated balance sheet as of September 28, 2008.

**Senior Lender:**

The Company entered into a senior secured loan agreement with a group of banks on October 3, 2008. The following is a summary of the agreement:
|  •                   |   | A revolving credit facility, up to $25.0 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% ofeligible inventories. As of September 28, 2008, the outstanding loans under the revolving credit facility were $4.7 million; $3.5 million of the loans were reclassified to long-term debt under SFAS No. 6 due to the October 3, 2008 amendment to the credit facility. Asof September 28, 2008, letters of credit issued were $1.0 million; and an aggregate of $22.8 million was available under the revolving credit facility. This credit facility matures on October 3, 2010.                                                                                                                                                                    |              |
|--------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------|
|       |   |                                                                                                                                                                                    |                                                                          |
|  •                   |   | A $10.0 million term loan amortized beginning November 2008, at a quarterly rate of $500,000, with the balance due October 2010.  The balance sheet reflects the amount outstanding at September 28, 2008 under the previousterm loan, $3.0 million, plus the reclassification of $3.5 million of short-term borrowings to long-term debt discussed in the paragraph above. The Company is obligated to borrow the remaining $3.5 million by November 30, 2008.                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                          |
|            |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                          |
|  •                   |        | Interest on both loans is calculated at a percentage of prime or a stated rate over LIBOR based on certain ratios.  For the fiscal quarter ended September 28, 2008, the average rate was approximately 4.47%.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                                          |
|       |   |                                                                                                                                                 |                                                                          |
|  •                   |   | 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. The Companywas in compliance with its borrowing agreement covenants as of September 28, 2008.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                          |
|            |   |                                                                                                                                                           |                                                                     |

***Other Long-Term Debt:***Other long-term debt includes capital lease agreements with outstanding balances totaling $302,000 the three months ended September 28, 2008 and $336,000 at June 29, 2008.

The aggregate maturities of long-term obligations are as follows:*(in thousands)*
| **Fiscal Year**               |
|-------------------------------|
|                               |
| 2009                          | ...............................................................  | $ | 1,605 |   |
| 2010                          | ...............................................................  |      | 2,146 |   |
| 2011                          | ...............................................................  |       | 3,051 |   |
| 2012                          | ...............................................................  |       | 250 |   |
| 2013                          | ...............................................................  |       | --- |   |
|                               |
|     Total | ...............................................................  | $ | 7,052 |   |
|                               |
| **9.** | **  ** | **CASH FLOWS** |
|--------|------------------|----------------|

****

Total cash payments for interest for the three months ended September 28, 2008 and September 30, 2007 amounted to $132,000 and $456,000, respectively.  Net cash payments for federal and state income taxes were $0 and$4,000 for the three months ended September 28, 2008 and September 30, 2007, respectively.
| **10.** | **  ** | **EARNINGS PER COMMON SHARE** |
|---------|------------------|-------------------------------|

Basic and diluted earnings per share are computed as follows:*(amounts in thousands, except earnings per-share amounts)*
|                                                                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | **September 28,** |                                      | September 30, |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------|------------------------------------------------|---------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                             |                   | **2008**                                       |               | 2007 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|  Net earnings                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | **$**                                                                                                                                                                                                                                                                                                                                                                                                                                                              | **3,669**         |                                                | $             | 2,520 |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                   |                                                |               |  |  |
| Basic net earnings per share                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | **$**                                                                                                                                                                                                                                                                                                                                                                                                                                                              | **0.24**          | **       ** | $             | 0.17 |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                   |                                                |               |  |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                   |                                                |               |  |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                   |                                                |               |  |  |
| Diluted net earnings per share                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                                                                                                                                                                                                                                                                                                                                                                                          | **$**             | **0.23**                                       |               | $ | 0.16 |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                   |                                                |               |  |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |

Basic earnings per share are calculated using the weighted-average number of common shares outstanding during the period.  Diluted earnings per share are calculated under the treasury stock method using theweighted-average number of common shares outstanding during the period plus shares issuable upon the assumed exercise of dilutive common share options.

*(in thousands)*
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                      | **Three Months Ended** |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------|------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                      |                        |  |  |  |
|                                                                                               |                                                      | **September 28,**      |      | September 30, |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                      | **2008**               |  | 2007 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                      |                        |  |  |  |
| Average common shares outstanding – basic                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | **        ** | **15,234**             |        |  | 15,200 |   |
| Dilutive options and nonvested shares                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                      | **856**                |  |  | 818 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                      |                        |  |  |  |
| Adjusted average common shares outstanding -- diluted                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                      | **16,090**             |  |  | 16,018 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                      |                        |  |  |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                      |                        |  |  |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                      |                        |  |  |  |

All stock options outstanding and nonvested shares at September 28, 2008 and September 30, 2007 were dilutive and included in the computation of diluted earnings per share. These options expire in various periods through 2014.The nonvested shares vest over the next two fiscal years.
| **11.** | **  ** | **STOCK-BASED COMPENSATION** |
|---------|------------------|------------------------------|

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 up to 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 up to 850,000 shares to be granted inthe form of stock-based awards to certain key employees and nonemployee directors. The Company may satisfy the awards upon exercise with either new or treasury shares. The Company’s stock compensation awards outstanding at September 28, 2008 include stockoptions, restricted stock and performance units.

Also, the Company has an Employee Stock Purchase Plan 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 the quarter, whichever islower. The Company recognizes as expense the difference between the price the employee pays and the market price of the stock on the last day of the quarter.

For the quarter ended September 28, 2008, total stock-based compensation was $572,000 ($355,000 after tax), equivalent to earnings per basic and diluted shares of $.02. For the three months ended September 30, 2007, totalstock-based compensation was $283,000 ($177,000 after tax), equivalent to earnings per basic and diluted share of $0.01.

As of September 28, 2008, the total unrecognized compensation expense related to nonvested awards, including stock options and performance units, was $1.4 million pretax, and the period over which it is expected to berecognized is approximately 1.5 years. As of September 30, 2007, the total unrecognized compensation expense related to nonvested awards, including stock options and performance units, was $1.0 million pre-tax and the period over which it was expected to berecognized was 1.5 years.

A summary of the Company’s Stock Option Plans as of September 28, 2008 is presented below:
|   | **                                                   **                                                                                                                                                               | **Number of Shares** | ** ** | **Weighted- Average Exercise Price** | ** ** | **Number of Shares Exercisable** | ** ** | **Weighted- Average Exercise Price** | ** **    | **Weighted- Average Fair Value Granted Option** |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------|------------|--------------------------------------|------------|----------------------------------|------------|--------------------------------------|---------------|-------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|   | Outstanding at June 29, 2008                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                      | 1,481,324  |                                      |            | $                                | 3.84       |                                      |     | 1,481,324                                       |  | $ | 3.84 |  |   |
|        |
|   |                                                                                |                 |
|   | **Canceled**                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                      | **---**    |                                      |            | **---**                          |            |                                      |               |                                                 |  |  |  |  |  |   |
|   | **Exercised**                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                      | **11,675** |                                      |            | **8.54**                         |            |                                      |               |                                                 |  |  |  |  |  |   |
|        |
|   | **Outstanding at  September 28, 2008**                                                                                                                                                                                                                                                                                                                                                                                                                                          | **1,469,649**        |            |                                      | **$**      | **3.81**                         |            | **  **                     | **1,469,649** |                                                 | **$** | **3.81** | **        ** |  | **---** |   |
|        |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|        |

***Stock Options***

The following table summarizes information about stock options outstanding:

| **                      ** |                  | **Outstanding and Exercisable Options as of September 28, 2008** |
|------------------------------------------------------------------------------------------------------------------------------------------|------------------|------------------------------------------------------------------|
|                                                                                                                                          |                  |                                                                  |
| **Range of Exercise Prices**                                                                                                             | **  ** | **Number Outstanding**                                           | **  ** | **Weighted- Average Remaining Contractual Life** | ** ** | ** ** | **Weighted- Average Exercise Price** | ** ** | **Aggregate Intrinsic Value****(1)****(in millions)** |
|                                                                                                                                          |                  |                                                                  |  |  |  |  |  |  |  |  |
|                                                                                                                                     | $                | 2.50 – 3.00                                                |  |   | 944,547 |        | 1.7 |               |    | $ | 2.59 |       |    | $ | 12.1 |         |
|                                                                                                                                          | $                | 3.03 – 5.96                                                |  |  | 266,200 |  | 4.8 |  |  | 3.52 |  | 3.2 |  |
|                                                                                                                                          | $                | 5.97 – 8.54                                                |  |   | 258,902 |   | 5.9 |   |  | 8.54 |   | 1.8 |  |
|                                                                                                                                          |                  |                                                                  |  |  |  |  |  |  |  |  |
|                                                                                                                                          |                  |                                                                  |  | 1,469,649 |  | 3.0 |  |    | $ | 3.81 |      | $ | 17.1 |  |
|                                                                                                                                          |                  |                                                                  |  |  |  |  |  |  |  |  |
|                                                                                                                                          |                  |                                                                  |  |  |  |  |  |  |  |
|                                                                                                                                          |                  |                                                                  |  |  |  |  |  |  |  |  |
|                                                                                                                                          |                  |                                                                  |  |  |  |  |  |  |  |

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 fiscal quarters ended September 28, 2008 and September 30, 2007 was $56,000 and $103,000, respectively. The exercise period for all stock options generally maynot exceed 10 years from the date of grant. Stock option grants to individuals generally become exercisable over a service period of one to five years.

No stock options were issued in the fiscal quarters ended September 28, 2008 and September 30, 2007. All stock options previously granted were at prices not less than fair market value of the common stock at the grantdate. All stock options outstanding at September 28, 2008 were dilutive and included in the computation of diluted earnings per share.  These options expire in various periods through 2014.

***Performance Units and Nonvested Stock***

The Company’s LTIP provides for the issuance of performance units, which will be settled in stock subject to the achievement of the Company’s financial goals. Settlement will be made pursuant to a range ofopportunities 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 performance units is subject to adjustment basedupon the attainability of the target goals.

Upon achievement of the performance goals, 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 thevesting 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 targets are settled.Awards vest on the last day of the second year following the performance period.

A summary of the nonvested shares as of September 28, 2008 is presented below:
|                                                                             |                                            | **Number of** |             | **Weighted-**                                    |       |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------|---------------|--------------------------------------------------------------------|--------------------------------------------------|-------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                            | **Nonvested** |                                                                    | **Average**                                      |       |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                            | **Shares**    |                                                               | **Grant Price**                                  |       |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                            |               |                                                                    |                                                  |       |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | Nonvested shares at June 29, 2008          |               | 108,084                                                            |          | $     | 12.29 |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                            |               |                                                                    |                                                  |       |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | **Issued**                                 |               | **141,923**                                                        |                                                  |       | **13.00** |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | **Vested**                                 |               | **---**                                                            |                                                  |       | **---** |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | **Forfeited**                              |               | **---**                                                            |                                                  |       | **---** |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                            |               |                                                                    |                                                  |       |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | **Nonvested shares at September 28, 2008** |               | **250,007**                                                        |                                                  | **$** | **12.69** |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                            |               |                                                                    |                                                  |       |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                            |               |                                                                    |                                                  |       |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                            |               |                                                                    |                                                  |       |  |

For the quarters ended September 28, 2008 and September 30, 2007, compensation expense related to the LTIP was $551,000, and $271,000, respectively.

|                                                                                                                                                     | **LaBARGE, INC.**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                    | **FORM 10-Q**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |        |
|                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |        |
|                                                                                                                                                                    | **MANAGEMENT’S DISCUSSION AND ANALYSIS**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |        |
|                                                                                                                                                                    | **OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |        |
| Item 2                                                                                                                                                             | **                                                                                                            ** |        |

**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 the negative 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 cashresources.  These statements may be found throughout the Report, including in the section of this report entitled “Management’s Discussion and Analysis of Financial Condition and Results of Operations.”  Readers are cautioned that matterssubject to forward-looking statements involve known and unknown risks and uncertainties, including those discussed in our most recent Annual Report on Form 10-K. These risks and uncertainties may cause our actual results, levels of activity, performance orachievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. Accordingly, we can give no assurances that any of the events anticipated by the forward-lookingstatements will occur, or if any of them do, what impact they will have on our results of operations or financial condition. We expressly decline any obligation to publicly revise any forward-looking statements that have been made to reflect the occurrence of eventsafter the date of this report.*

**General**General Development of Business and Information about Business ActivityLaBarge, Inc. (“LaBarge” or the “Company”) is a Delaware corporation, incorporated in 1968, that provides custom high-performance electronic, electromechanical and interconnect systems on a contract basis forcustomers in diverse technology-driven markets.  The Company’s core competencies are manufacturing, engineering and design of interconnect systems, circuit card assemblies, high-level assemblies, and complete electronic systems for its customers’specialized applications.

The Company markets its services to customers desiring an engineering and manufacturing partner capable of developing and providing products that can perform reliably in harsh environmental conditions, such as high and lowtemperatures, severe shock and vibration.  The Company serves customers in a variety of markets including defense, aerospace, natural resources, industrial, medical and other commercial markets.  The Company’s engineering and manufacturing facilitiesare located in Arkansas, Missouri, Oklahoma, Texas and Pennsylvania.  The Company employs approximately 1,340 people, including approximately 1,130 people who provide support for production activities (including assembly, testing and engineering) andapproximately 210 people who provide administrative support.

The Company uses a fiscal year ending the Sunday closest to June 30; each fiscal quarter is 13 weeks.  Fiscal year 2008 consisted of 52 weeks.

**Results of Operations - Three Months Ended September 28, 2008**

*********Backlog****(in thousands)*
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                         | **September 28,** | **           ** | June 29,    |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------|-------------------|------------------------------------------------------------------------|-------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | Change                                                                                                                                     | **2008**          |                                                                        | 2008        |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                            |                   |
| Backlog                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | $(2,928                                                                                                                                    | )                 | **$**                                                                  | **218,365** |  | **    ** | $ | 221,293 |    |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                            |                   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                            |                   |                                                                        |             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                            |                   |
|                                                                                                                                                                      |

Approximately $62.9 million of the backlog at September 28, 2008 is scheduled to ship beyond the next 12 months pursuant to the shipment schedules contained in those contracts.  This compares with $48.4 million atJune 29, 2008. 

As of September 28, 2008, the Company’s backlog includes approximately $39.6 million relating to orders on a very light jet program.  Approximately $25.5 million of the backlog is scheduled to ship beyond the next12 months. This program is discussed in more detail in Part II - Item 1A, “Risk Factors,” in the section related to customer concentration.

***Net Sales****(dollars in thousands)*
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | **Three Months Ended**                                                                                                                     |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                            |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                         | **September 28,** | **           ** | September 30, |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | Change                                                                                                                                     | **2008** |  | 2007 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                            |  |
| Net sales                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | 15.2%                                                                                                                                      |  | **$** | **68,192** |  | **    ** | $ | 59,190 |    |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                            |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                            |  |  |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                            |  |
|                                                                                                                                                                      |

The largest contributor to fiscal 2009 first-quarter revenues was shipments to defense customers, representing $30.8 million of net sales, versus $22.9 million in 2008.  During the current year’s first quarter,LaBarge provided cables and electronic assemblies for a variety of defense applications, including military aircraft, missile systems, radar systems and shipboard programs.  Shipments to natural resources customers were $11.2 million in the first quarter offiscal 2009, compared with $15.4 million in the year-ago period. In addition, industrial customers represented $14.6 million of fiscal 2009 first-quarter net sales, compared with $11.0 million in the year-ago period. Shipments to medical customers represented$4.7 million of fiscal 2009 first-quarter net sales, compared with $3.2 million in the year-ago period. 

Sales to the Company’s 10 largest customers represented 70% of total revenue in the first quarter of fiscal 2009, compared with 69% for the same period of fiscal 2008.  The Company’s top threecustomers accounted for 18%, 9% and 9%, respectively, of total sales for the first quarter of fiscal 2009. This compares with 13%, 12% and 11%, respectively, for the first quarter of fiscal 2008.

***Gross Profit****(dollars in thousands)*
|                                                          |                                                                                    | **Three Months Ended**       |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------|------------------------------|
|                                                                                                                                                                                                                                                                                                                                                  |                                                                                    |
|                                                                                                                                                                                  | **            **Change | **    ** | **September 28, 2008** | **          ** | September 30, 2007 |
|                                                                                                                                                                                                                                                                                                                                                  |                                                                                    |                              |  |  |
| Gross profit Gross margin                                                                                                                                                                                                                                                                                                                        |                                                                     | $                            | 2,891 1.7 |   points | **   ** | **$** | **14,263 20.9** | **%** |  | $ | 11,372 19.2 | % |
|                                                                                                                                                                                                                                                                                                                                                  |                                                                                    |                              |
|                                                                                                                                                                                                                                                                                                                                                  |                                                                                    |                              |
|                                                                                                                                                                                                                                                                                                                                                  |                                                                                    |                              |  |  |

Gross profit margins vary significantly from contract to contract. The gross profit margin for any particular quarter will reflect the mix of contracts recognized in revenue for the quarter. The gross margin expansion is theresult of improved operating efficiencies and favorable product mix.

***Selling and Administrative Expenses****(dollars in thousands)*
|                                                                       |                                                         | **Three Months Ended** |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------|------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                  |                                                         |
|                                                                  |          Change | **   ** | **September 28, 2008** | **         ** | September 30, 2007 |
|                                                                                                                                                                                                                                                                                                                                                                                                  |                                                         |                        |
| Selling and administrative expenses                                                                                                                                                                                                                                                                                                                                                              | $                                                       | 1,323                  |  | **$** | **8,270** |  | ** ** | $ | 6,947 |         |
| Percent of sales                                                                                                                                                                                                                                                                                                                                                                                 |                                     | 0.4                    |   points | **       ** | **12.1** | **%** | **   ** |           | 11.7 | % |
|                                                                                                                                                                                                                                                                                                                                                                                                  |                                                         |                        |
|                                                                                                                                                                                                                                                                                                                                                                                                  |                                                         |                        |  |  |
|                                                                                                                                                                                                                                                                                                                                                                                                  |                                                         |                        |

Selling and administrative expenses increased over the prior comparable period, primarily as a result of an increase in compensation cost and related fringes of $1.3 million due to wage inflation and higher accrued incentive pay.

***Interest Expense****(in thousands)*
|                                                                      |        | **Three Months Ended** |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                          |        |
|                                                                                                                                                                                                                                                                                                                                                                                                           | Change | **September 28, 2008** | **     ** | September 30, 2007 |
|                                                                                                                                                                                                                                                                                                                                                                                                                          |        |                        |
|  Interest expense                                                                                                                                                                                                                                                                                                                                                                                                   | $      | (269                   | )        | **$** | **158** |  | **       ** | $ | 427 |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                          |        |                        |
|                                                                                                                                                                                                                                                                                                                                                                                                                          |        |                        |
|                                                                                                                                                                                                                                                                                                                                                                                                                          |        |                        |

Interest expense declined for the three months ended September 28, 2008, versus the year-ago period.  The reduction reflects lower average debt levels and lower average interest rates.

Average interest rates during the current-year period were 4.3%, compared with 6.8% in the comparable quarter a year ago.

******

***Income Tax Expense****(in thousands)*
|                                                                         |        | **Three Months Ended** |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                            |        |
|                                                                                                                                                                                                                                                                                                                                                                                                                   | Change | **September 28, 2008** | **      ** | September 30, 2007 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                            |        |                        |
| Income tax expense                                                                                                                                                                                                                                                                                                                                                                                                                         | $      | 688                    |      | **$** | **2,156** | **   ** | **      ** | $ | 1,468 |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                            |        |                        |
|                                                                                                                                                                                                                                                                                                                                                                                                                                            |        |                        |
|                                                                                                                                                                                                                                                                                                                                                                                                                                            |        |                        |

The reported income tax rate was 37.0% and 36.8% for the three-month periods ended September 28, 2008 and September 30, 2007, respectively. The effective income tax rate for the three-month period ended September 28, 2008 was37.9%, compared with 37.3% for the three-month period ended September 30, 2007. The difference between the reported income tax rate and the effective income tax rate was due to changes in estimated Sub Part F income.

**Liquidity Capital Resources******The following table shows LaBarge’s equity and total debt positions:

***Stockholders’ Equity and Debt****(in thousands)*
|                                                                               | **September 28,**                                                                  | June 29,  |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------|-----------|
|                                                                | **2008**                                                                           | 2008      |
|                                                                                                                                                                                                                                                                                                                                                                                      |                                                                                    |           |
| Stockholders’ equity                                                                                                                                                                                                                                                                                                                                                           | **    **                                                       | **$**     | **95,896** |             |       | $ | 91,469 |          |
| Debt                                                                                                                                                                                                                                                                                                                                                                                 | **             ** | **8,252** | **     ** |     | 15,629 |  |
|                                                                                                                                                                                                                                                                                                                                                                                      |                                                                                    |           |

The Company’s operations generated $7.3 million of cash in the first quarter ended September 28, 2008.

**Senior Lender:**

The Company entered into a senior secured loan agreement with a group of banks on October 3, 2008. The following is a summary of the agreement:
|  •                   |   | A revolving credit facility, up to $25.0 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% ofeligible inventories. As of September 28, 2008, the outstanding loans under the revolving credit facility were $4.7 million; $3.5 million of the loans were reclassified to long-term debt under SFAS No. 6 due to the October 3, 2008 amendment to the credit facility. Asof September 28, 2008, letters of credit issued were $1.0 million; and an aggregate of $22.8 million was available under the revolving credit facility. This credit facility matures on October 3, 2010.                                                                                                                                                                    |              |
|--------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------|
|       |   |                                                                                                                                                                                    |                                                                          |
|  •                   |   | A $10.0 million term loan amortized beginning November 2008, at a quarterly rate of $500,000, with the balance due October 2010.  The balance sheet reflects the amount outstanding at September 28, 2008 under the previousterm loan, $3.0 million, plus the reclassification of $3.5 million of short-term borrowings to long-term debt discussed in the paragraph above. The Company is obligated to borrow the remaining $3.5 million by November 30, 2008.                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                          |
|            |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                          |
|  •                   |        | Interest on both loans is calculated at a percentage of prime or a stated rate over LIBOR based on certain ratios.  For the fiscal quarter ended September 28, 2008, the average rate was approximately 4.47%.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                                          |
|       |   |                                                                                                                                                 |                                                                          |
|  •                   |   | 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. The Companywas in compliance with its borrowing agreement covenants as of September 28, 2008.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                          |
|            |   |                                                                                                                                                           |                                                                     |

***Other Long-Term Debt:***Other long-term debt includes capital lease agreements with outstanding balances totaling $302,000 the three months ended September 28, 2008 and $336,000 at June 29, 2008.

The aggregate maturities of long-term obligations are as follows:*(in thousands)*
| **Fiscal Year**               |
|-------------------------------|
|                               |
| 2009                          | ...............................................................  | $ | 1,605 |   |
| 2010                          | ...............................................................  |      | 2,146 |   |
| 2011                          | ...............................................................  |       | 3,051 |   |
| 2012                          | ...............................................................  |       | 250 |   |
| 2013                          | ...............................................................  |       | --- |   |
|                               |
|     Total | ...............................................................  | $ | 7,052 |   |
|                               |

***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 statements and 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 the Notes to the Consolidated Financial Statements included with this quarterly report on Form 10-Q for the quarter ended September 28, 2008and as referenced in the Company’s Annual Report on Form 10-K for the fiscal year ended June 29, 2008.

***Revenue Recognition and Cost of Sales***Revenue is recognized in accordance with Staff Accounting Bulletin No. 104, “Revenue Recognition.” Revenue is recognized on substantially all transactions when title transfers, which is usually upon shipment.  TheCompany has a significant number of contracts for which revenue is accounted for under the percentage of completion method based upon units delivered. This results in revenue for these contracts being recognized when the units are shipped to the customer and titletransfers.

The percentage-of-completion method gives effect to the most recent contract value and estimates of cost at completion. Management’s estimates of material, labor and overhead costs on long-term contracts are critical tothe Company.  Due to the size, length of time and nature of many of our contracts, the estimation of costs through completion is complicated and subject to many variables. Total contract cost estimates are largely based on negotiated or estimated purchasecontract terms, historical performance trends, business base and other economic projections. Factors that influence these estimates include inflationary trends, technical and schedule risk, performance trends, business volume assumptions, asset utilization, andanticipated labor rates.

The development of estimates of costs at completion involves procedures and personnel in all areas that provide financial or production information on the status of contracts. Estimates of each significant contract’svalue and estimate of costs at completion are reviewed and reassessed quarterly. Changes in these estimates result in recognition of cumulative adjustments to the contract profit in the period in which the change in estimate was made.  When the current estimateof costs indicates a loss will be incurred on the contract, a provision is made in the current period for the total anticipated loss.

Due to the significance of judgment in the estimation process described above, it is likely that different cost of sales amounts could be recorded if we used different assumptions, or if the underlying circumstances were tochange. Changes in underlying assumptions/estimates, supplier performance, or circumstances may adversely or positively affect financial performance in the future.

During fiscal year 2007, the Company entered an agreement with an industrial customer to manufacture and supply certain parts. Under the Financial Accounting Standards Board’s (“FASB”) Emerging Issues TaskForce (“EITF”) No. 99-19, “Reporting Revenue Gross as a Principle versus Net as an Agent,” the cost of the supplied parts is netted against the invoice price to determine net sales when the part is shipped. In the quarter ended September 28,2008, the Company’s net revenues recognized under this contract were $4.8 million, related to the manufactured assemblies, and $137,000, related to the supplied parts.

On a very limited number of transactions, at a customer’s request, the Company will recognize revenue when title passes, but prior to the shipment of the product to the customer. As of September 28, 2008, the Company hasrecognized revenue on products for which title has transferred but the product has not been shipped to the customer of $950,000. The Company recognizes revenue for storage and other related services as the services are provided.

***Inventories***Inventories, which consist of materials, labor and manufacturing overhead, are carried at the lower of cost or market value. In addition, management regularly reviews inventory for obsolescence to determine whether any additionalwrite-down is necessary.  Various factors are considered in making this determination, including expected program life, recent sales history, predicted trends and market conditions.  If actual demand or market conditions are less favorable than thoseprojected by management, additional inventory write-downs may be required.  For the quarters ended September 28, 2008 and September 30, 2007, expense for obsolete or slow-moving inventory charged to income before income taxes was $597,000 and $317,000,respectively.

***Recently Adopted Accounting Standards***In September 2006, the Financial Accounting Standards Board (“FASB”) issued Statement of Financial Accounting Standards (“SFAS”) No. 157, “Fair Value Measurements” (“SFAS No. 157”), toclarify the definition of fair value, establish a framework for measuring fair value and expand the disclosures on fair value measurements. On June 29, 2008, the company adopted the provision of SFAS No. 157. The adoption did not have a material impact on itsconsolidated financial statements. The Company will defer the adoption of SFAS No. 157 for its nonfinancial assets and nonfinancial liabilities until the year ended June 27, 2010, as permitted under FASB Staff Position 157-2, “Effective Date of FASB StatementNo. 157.”

In February 2007, the FASB issued SFAS No. 159, “The Fair Value Option for Financial Assets and Financial Liabilities” (“SFAS No. 159”), to permit all entities to choose to elect, at specified electiondates, to measure eligible financial instruments at fair value. An entity shall report unrealized gains and losses, on items for which the fair value option has been elected, in earnings at each subsequent reporting date, and recognize upfront costs and fees relatedto those items in earnings as incurred and not deferred. SFAS No. 159 applies to fiscal years beginning after November 15, 2007, with early adoption permitted for an entity that has also elected to apply the provisions of SFAS No. 157. On June 29, 2008, the Companyadopted the provisions of SFAS No. 159. The adoption did not have a material impact on its consolidated financial statements when it became effective for the fiscal year ending June 28, 2009.

In September 2006, the FASB’s EITF reached a consensus on EITF Issue No. 06-4, “Accounting for Deferred Compensation and Postretirement Benefits Aspects of Endorsement Split-Dollar Life InsuranceArrangements” (“EITF 06-4”).  This addresses only endorsement split-dollar life insurance arrangements that provide a benefit to an employee that extends to postretirement periods. EITF 06-04 was adopted on June 29, 2008. Adopting theprovisions of EITF 06-4 did not have a material impact on the Company’s consolidated financial statements.
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| **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 fiscal quarters ended September 28, 2008 and September 30, 2007, 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 September 28, 2008, the Company had $8.3 million in total debt. Industrial revenue bonds and capital leases totaling $552,000 have a fixed rate and are not subject to interest rate risk. The interest rate on the remaining $7.7 millionis subject to fluctuation.  If interest rates increased 1.0%, the additional interest cost to the Company would be approximately $68,000 for one year.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| ** **                                                                                                                                             | **                                                                                       **                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |  |
| **ITEM 4.        **                                                                                            | **Controls and Procedures**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | **                        ** |
| ** **                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |  |
|                           | *Evaluation Of Disclosure Controls And Procedures*The Company’s Chief Executive Officer and President, and the Company’s Vice President and Chief Financial Officer, have conducted an evaluation of the design and effectiveness of 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 amended, as of the end of the period covered by this report.

The Chief Executive Officer and Chief Financial Officer have concluded that as of the end of the period covered by this report, the Company’s disclosure controls and procedures are functioning adequately and effectivelyto provide reasonable assurance that the Company can meet its disclosure obligations.  The Company’s disclosure controls and procedures are based upon a chain of financial and general business reporting lines that converge in the headquarters of theCompany in St. Louis, Missouri.  The reporting process is designed to 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 andreported within the time periods specified in the Commission’s rules and forms.

*Changes In Internal Controls*

During our first fiscal quarter of 2009, there were no changes in internal control over financial reporting identified in connection with Management’s evaluation that have materially affected or that are reasonablylikely to materially affect these controls. |

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**PART II**

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| **ITEM 1A.**                                                                                                                                         | **Risk Factors**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
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| **                        ** | **                                                                                                                    **                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|                                                                                                                                                      | Our Annual Report on Form 10-K for the year ended June 28, 2008, includes “Risk Factors” under Item 1A of Part I. Except for the updated risk factors described below, there have been no material changes from therisk factors described in our Form 10-K. The information below updates, and should be read in conjunction with, the risk factors and information disclosed in our Form 10-K.

*Because the Company’s customer base is concentrated, significant reduction in sales to any of the Company’s major customers or the loss of a major customer could have a material impact on the Company’soperations.*Although the Company believes its relationships with its large customers are good, there can be no assurance that the Company will retain any or all of its large customers or will be able to form new relationships with customers upon theloss of one or more of its existing customers. This risk may be further complicated by pricing pressures and intense competition prevalent in our industry.

As of September 28, 2008, the Company’s backlog included approximately $39.6 million relating to orders on a very light jet program with one customer. Based on current estimates, approximately $25.5 million of thebacklog is scheduled to ship beyond the next 12 months.

As of September 28, 2008, the trade receivables due from this customer were $3.8 million, of which $3.6 million was past due. Included in inventory as of September 28, 2008 was $3.8 million related to thisprogram.

At June 29, 2008, included in trade receivables was $3.4 million due from this customer, of which $1.1 million was past due. Included in inventory as of June 29, 2008 was $3.2 million related to this program.

In response to the past due receivables, the Company’s management is in discussions with the customer to develop a payment plan. The customer is currently attempting to raise additional equity to fund its operations,including satisfying obligations to suppliers. The Company does not expect to receive payment for the receivables prior to the customer raising additional equity. If the customer is able to raise additional equity, the Company anticipates that the receivablesoutstanding as of September 28, 2008 will be paid-in full. If the customer is unable to raise additional equity, the Company may not collect the receivables or recover the full value of inventory related to this program, which could adversely affect theCompany’s operations. As of September 28, 2008, the Company’s allowance for doubtful accounts includes $79,000 associated with this customer related to disputed invoices which have been outstanding for more than one year.  The Company’sallowance for doubtful accounts does not include any other amounts for this customer.

The customer has also notified the Company of a significant delay in the customer’s production schedule.  The Company anticipates that shipments to this customer will be minimal in the first half of fiscal year2009, as compared to shipments of $4.7 million in the first half of fiscal 2008. Based on schedules received from the customer, the Company anticipates that shipments will resume to previous levels in the second half of fiscal year 2009. |
| **ITEM 6.**                                                  | **Exhibits**                                     |                                                                                                                                                                                                          |
|--------------------------------------------------------------|--------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                              |                         |
| 10.1                                                         |                                                  | Fifth Amendment to the Loan Agreement dated October 3, 2008 by and among the Company, LaBarge Electronics, Inc., as borrowers, U.S. Bank National Association and Wells Fargo, as agent, filed herewith. |
|                                                         |                                                  |                                                                                                                                                                                                          |
| 31.1                                                    |                    | Certification by Chief Executive Officer pursuant to Exchange Act Rule 13a-14 and 15d-14, 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 and 15d-14, 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.                                                       |
|            |          |

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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:                                                                                                                                                                                                     | October 30, 2008                           |
| By:                                                                                                                                                                                                            | /S/ DONALD H. NONNENKAMP                   |
|                                                                                                                                                                                                                          |                                            |
| Name:                                                                                                                                                                                                          | Donald H. Nonnenkamp                       |
|                                      | Vice President and Chief Financial Officer |
|                                                                                                                                                                                                                          | Principal Financial Officer                |