| **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 30, 2007** |
| **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 90 days.  Yes [X]  No [  ]Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer.  See definition of “accelerated filer and large accelerated filer” in Rule 12b-2 of the Exchange Act.  (Checkone):    Large Accelerated Filer [   ]             Accelerated filer [X]             Non-Accelerated Filer[   ]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 November 5, 2007: 15,391,348 shares of common stock.

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| **LaBarge, Inc.**                                     |
|-------------------------------------------------------|
|                                                  |
| **FORM 10-Q**                                         |
|                                                  |
| **For the Quarterly Period Ended September 30, 2007** |
|                                                  |
| **Table of Contents**                                 |
|                                                  |

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

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PART I

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

***(amounts in thousands, except per-share amounts)***
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                                |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| **                                                                                                                **                   | **Three Months Ended**                                                                                                                                                                                                                                                                                                                                                               |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                                                                                                                                                                                                                                                                                                                                                      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                                                                                                                                                                                                                                                                                                                                                      | **                       ** |  |  |                          |  |
| **                                                                                                                   ** | ** **                                                                                                                                                                                                                                                                                                                                                                           | **September 30, 2007** | **  ** |   | October 1, 2006 |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                                                                                                                                                                                                                                                                                                                                                      |  |  |  |  |
| **Net sales**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                                                                      | **$** | **59,190** |        | $ | 49,900 |  |
| **Cost and expenses:**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                                                                                                                                                                                                                                                                                                                                                                      |  |  |  |  |  |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | Cost of sales                                                                                                                                                                                                                                                                                                                                                                        |   |  | **47,818** |        |  | 39,243 |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | Selling and administrative expense                                                                                                                                                                                                                                                                                                                                                   |   |  | **6,947** |  |   | 5,991 |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | Interest expense                                                                                                                                                                                                                                                                                                                                                                     |   |  | **427** |  |  | 651 |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | Other expense, net                                                                                                                                                                                                                                                                                                                                                                   |   |  | **10** |  |   | 44 |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                                                                                                                                                                                                                                                                                                                                                      |  |  |  |  |
| Earnings before income taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                 |  | **3,988** |  |  | 3,971 |  |
| Income tax expense                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                      |  | **1,468** |  |  | 1,560 |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                                                                                                                                                                                                                                                                                                                                                      |  |  |  |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                                                                                                                                                                                                                                                                                                                 |  |  |  |  |
| **Net earnings**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                                                                                                                                                                                 | **$** | **2,520** |  | $ | 2,411 |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                                                                                                                                                                                                                                                                                                                                                      |  |  |  |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                                                                                                                                                                                                                                                                                                                                                      |  |  |  |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                                                                                                                                                                                                                                                                                                                                                      |  |  |  |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| **Basic net earnings per share:**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                                                                                                                                                                                                                                                                                                                                                      |  | **     ** |  |  |
| Basic net earnings                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                      | **$** | **0.17** |  | $ | 0.16 |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                                                                                                                                                                                                                                                                                                                                                      |  |  |  |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| **Average common shares outstanding**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                 |  | **15,200** |  |   | 15,121 |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                                                                                                                                                                                                                                                                                                                                                      |  |  |  |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                                                                                                                                                                                                                                                                                                                                                      |  |  |  |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                                                                                                                                                                                                                                                                                                                                                      |  |  |  |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| **Diluted net earnings per share:**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                                                                                                                 |  |  |       |  |  |  |
| Diluted net earnings                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                                                                                                                                                                                                                                                                                                                      | **$** | **0.16** |  | $ | 0.15 |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                                                                                                                                                                                                                                                                                                                                                      |  |  |  |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| **Average diluted common shares outstanding**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                                                                      |  | **16,018** |  |  | 15,984 |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                                                                                                                                                                                                                                                                                                                                                      |  |  |  |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                                                                                                                                                                                                                                                                                                                                                      |  |  |  |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                                                                                                                                                                                                                                                                                                                                                      |  |  |  |  |

See accompanying notes to consolidated financial statements.

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LaBARGE, INC.CONSOLIDATED BALANCE SHEETS***(amounts in thousands, except  share amounts)***
| **   **                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | ** **                                                                                                                                               | **September 30, 2007**                                                                                                                                                                                                                                                                                                               |                                                                                                                |                                                  | **July 1, 2007**                                                                                                     |                                                                                                                                                  |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------|--------------------------------------------------|----------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                      |                                                                                                                |                                                  |                                                                                                                      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                                                                                          | *(Unaudited)*                                                                                                                                                                                                                                                                                                                        |                                                                                                                |                                                  |                                                                                                                      |
| **                                                                                                                    ** |                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                      | *                  * |          | *                   * |                                                                                                                                                  |
| **ASSETS**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                      |                                                                                                                |                                             |                                                                                                                      |                                                                                                                                             |
| **Current assets:**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                      |                                          |                                                  |                                                                                                                 |                          |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | Cash and cash equivalents                                                                                                                                |                                                                                                                                                                                                                                                                                                                                 | **$**                                                                                                          | **1,896**                                        |                                                                                                                 | $                                                                                                                                                | 392 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | Accounts and other receivables, net                                                                                                                      |                                                                                                                                                                                                                                                                                                                                 |                                                                                                                | **29,480**                                       |                                                                                                                      |                                                                                                                                             | 30,204 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | Inventories                                                                                                                                              |                                                                                                                                                                                                                                                                                                                                 |                                                                                                                | **61,314**                                       |                                                                                                                      |                                                                                                                                                  | 59,717 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | Prepaid expenses                                                                                                                                         |                                                                                                                                                                                                                                                                                                                                 |                                                                                                                | **1,472**                                        |                                                                                                                      |                                                                                                                                             | 2,333 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | Deferred tax assets, net                                                                                                                                 |                                                                                                                                                                                                                                                                                                                                 |                                                                                                                | **1,628**                                        |                                                                                                                      |                                                                                                                                                  | 1,822 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                      |                                                                                                                |                                                  |                                                                                                                      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | **Total current assets**                                                                                                                                 |                                                                                                                                                                                                                                                                                                                                 |                                                                                                                | **95,790**                                       |                                                                                                                      |                                                                                                                                                  | 94,468 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                      |                                                                                                                |                                                  |                                                                                                                      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                      |                                                                                                                |                                                  |                                                                                                                 |
| Property, plant and equipment, net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                      | **16,881**                                                                                                     |                                                  |                                                                                                                      | 16,269                                                                                                                                           |   |
| Intangible assets, net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                      | **2,002**                                                                                                      |                                                  |                                                                                                                 | 2,282                                                                                                                                            |   |
| Goodwill, net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                      | **24,292**                                                                                                     |                                                  |                                                                                                                 | 24,292                                                                                                                                           |  |
| Deferred tax asset, net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                      | **622**                                                                                                        |                                                  |                                                                                                                      | 499                                                                                                                                              |  |
| Other assets, net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                      | **4,933**                                                                                                      |                                                  |                                                                                                                 | 4,772                                                                                                                                            |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                      |                                                                                                                |                                                  |                                                                                                                      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | **Total assets**                                                                                                                                         |                                                                                                                                                                                                                                                                                                                                 | **$**                                                                                                          | **144,520**                                      |                                                                                                                      | $                                                                                                                                                | 142,582 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                      |                                                                                                                |                                                  |                                                                                                                      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                      |                                                                                                                |                                                  |                                                                                                                      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                      |                                                                                                                |                                                  |                                                                                                                      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
| **LIABILITIES AND STOCKHOLDERS’ EQUITY**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                  |
| **Current liabilities:**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                      | **              **                       |                                                  |                                                                                                                      |                                                                                                |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | Short-term borrowings                                                                                                                                    |                                                                                                                                                                                                                                                                                                                                      | **$**                                                                                                          | **13,600**                                       |                                                                                                                      | $                                                                                                                                                | 14,825 |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | Current maturities of long-term debt                                                                                                                     |                                                                                                                                                                                                                                                                                                                                 |                                                                                                                | **6,305**                                        |                                                                                                                      |                                                                                                                                                  | 6,300 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | Trade accounts payable                                                                                                                                   |                                                                                                                                                                                                                                                                                                                                 |                                                                                                                | **20,755**                                       |                                                                                                                      |                                                                                                                                             | 18,643 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | Accrued employee compensation                                                                                                                            |                                                                                                                                                                                                                                                                                                                                 |                                                                                                                | **9,686**                                        |                                                                                                                      |                                                                                                                                             | 10,837 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | Other accrued liabilities                                                                                                                                |                                                                                                                                                                                                                                                                                                                                 |                                                                                                                | **2,732**                                        |                                                                                                                      |                                                                                                                                             | 2,321 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | Cash advances                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                      |                                                                                                                | **4,173**                                        |                                                                                                                      |                                                                                                                                             | 3,613 |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                      |                                                                                                                |                                                  |                                                                                                                      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | **Total current liabilities**                                                                                                                            |                                                                                                                                                                                                                                                                                                                                 |                                                                                                                | **57,251**                                       |                                                                                                                      |                                                                                                                                                  | 56,539 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                      |                                                                                                                |                                                  |                                                                                                                      |
| Long-term advances from customers for purchase of materials                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                      | **1,285**                                                                                                      |                                                  |                                                                                                                      | 1,590                                                                                                                                            |   |
| Deferred gain on sale of real estate and other liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                      | **2,809**                                                                                                      |                                                  |                                                                                                                      | 2,912                                                                                                                                            |  |
| Long-term debt                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                      | **3,552**                                                                                                      |                                                  |                                                                                                                      | 5,131                                                                                                                                            |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                      |                                                                                                                |                                                  |                                                                                                                      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| **Stockholders’ equity:**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                                                                                     |                                                        |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | Common stock, $.01 par value.  Authorized 40,000,000 shares; 15,773,253 issued at September 30, 2007 and July 1, 2007, including shares in treasury |                                                                                                                                                                                                                                                                                                                                 |                                                                                                                | **158**                                          |                                                                                                                      |                                                                                                                                             | 158 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | Additional paid-in capital                                                                                                                               |                                                                                                                                                                                                                                                                                                                                 |                                                                                                                | **16,095**                                       |                                                                                                                      |                                                                                                                                             | 16,174 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | Retained earnings                                                                                                                                        |                                                                                                                                                                                                                                                                                                                                 |                                                                                                                | **66,294**                                       |                                                                                                                      |                                                                                                                                                  | 63,774 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | Less cost of common stock in treasury, shares of 389,298 at September 30, 2007 and 506,704 at July 1, 2007                                               |                                                                                                                                                                                                                                                                                                                                      | **(2,924**                                                                                                     | **)**                                            | (3,696                                                                                                               | )                                                                                                                                                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                      |                                                                                                                |                                                  |                                                                                                                      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | **Total stockholders’ equity**                                                                                                                     |                                                                                                                                                                                                                                                                                                                                 |                                                                                                                | **79,623**                                       |                                                                                                                      |                                                                                                                                             | 76,410 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                      |                                                                                                                |                                                  |                                                                                                                      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                                                                                          | **Total liabilities and stockholders’ equity**                                                                                                                                                                                                                                                                                 |                                                                                                           | **$**                                            | **144,520**                                                                                                          |                                                                                                                                                  | $ | 142,582 |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                      |                                                                                                                |                                                  |                                                                                                                      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                      |                                                                                                                |                                                  |                                                                                                                      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                      |                                                                                                                |                                                  |                                                                                                                      |

See accompanying notes to consolidated financial statements.

----

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

***(amounts in thousands)***
| **                                                                                         **       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | **Three Months Ended**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                       |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                            |  |  |
| **                                                                                          ** | ** **                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | **September 30, 2007**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | ** **                                                                                                                                                                                 | October 1, 2006 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                            |  |  |
| **Cash flows from operating activities:**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                                                                                                                       |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Net earnings                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | **      **                                                                                                                                                   | **$** | **2,520** | **         ** |         | $ | 2,411 |           |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Adjustments to reconcile net cash provided by operating activities:                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                          |                                                                                                                                                                                       |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Depreciation and amortization                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                                                                                                                       | **1,260** |  |              | 1,240 |  |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | Amortization of deferred gain on sale of real estate                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                            | **(120** | **)** |  | --- |  |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | Stock-based compensation                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                            | **283** |  |          | 332 |  |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | Other than temporary impairment of investment                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                            | **13** |  |  | 105 |  |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Deferred taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                       | **71** |  |   | (164 | ) |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Other                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                       | **2** |  |   | (3 | ) |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Changes in assets and liabilities, net of acquisitions:                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                       |  |  |   |  |  |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Accounts and notes receivable, net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                                                                                                       |   | **724** |  |  | 2,681 |  |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Inventories                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                                                                                                                                                       |   | **(1,597** | **)** |  | (2,909 | ) |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Prepaid expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                                                                                                                                                                       |   | **861** |  |  | 146 |  |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | Trade accounts payable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                            |  | **1,149** |  |  | 936 |  |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Accrued liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                                                                                                                       |   | **(335** | **)** |  | 2,124 |  |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | Advance payments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                                                                                                                                                                            |  | **255** |  |  | 3,461 |  |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                            |  |  |
| **Net cash provided by operating activities**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 | **5,086**                                                                                                                                                                                  |  |        | 10,360 |  |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                            |  |  |
| **    **                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| **Cash flows from investing activities:**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Additions to property, plant and equipment                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                        | **(648** | **)** |  | (1,229 | ) |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | Proceeds from disposal of property and equipment                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                            | **18** |  |  | 5 |  |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Additions to other assets and intangibles                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                       | **(175** | **)** |  | (428 | ) |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | Proceeds from sale of other assets and intangibles                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                            | **---** |  |  | 20 |  |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                            |  |  |
| **Net cash (used) by investing activities**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | **(805**                                                                                                                                                                                   | **)** |  | (1,632 | ) |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                            |  |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| **Cash flows from financing activities:**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                 |  |  |                      |  |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | Borrowings on revolving credit facility                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                            | **19,000** |  |  | 13,450 |  |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | Payments of revolving credit facility                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                            | **(20,225** | **)** |  | (20,175 | ) |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | Borrowings of long-term debt                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                            | **---** |  |  | 250 |  |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | Repayments of long-term senior debt                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                            | **(1,574** | **)** |  | (1,384 | ) |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Issuance of treasury stock                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                       | **287** |  |  | 381 |  |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Purchase of treasury stock                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                       | **(265** | **)** |  | (597 | ) |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                            |  |  |
| **                                                                                         **       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | **                      **                                                   |  |  |                        |  |   |
| **Net cash (used) by financing activities**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | **(2,777**                                                                                                                                                                                 | **)** |  | (8,075 | ) |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                            |  |  |
| **Net increase in cash and cash equivalents**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | **1,504**                                                                                                                                                                                  | **        ** |  | 653 |  |   |
| **Cash and cash equivalents at beginning of period**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | ** **                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | **392**                                                                                                                                                                                    |  |  | 947 |  |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                            |  |  |
| **Cash and cash equivalents at end of period**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | **      **                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | **$**                                                                                                                                                                                      | **1,896** | **           ** |       | $ | 1,600 |             |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                            |  |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                            |  |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                                                                                                            |  |  |

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 30, 2007, the related consolidated statements of income for the three months ended September 30, 2007 and October 1, 2006, and the consolidated statements of cash flows for the threemonths ended September 30, 2007 and October 1, 2006, 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 financialposition and the results of operations and cash flows for the aforementioned periods, have been made.

Certain information and footnote disclosures normally included in consolidated financial statements prepared in conformity with U.S. generally accepted accounting principles have been condensed or omitted.  Theseconsolidated financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended July 1, 2007.

**Stock-Based Compensation**For the three months ended September 30, 2007, total stock-based compensation was $0.3 million ($0.2 million after tax), equivalent to earnings per basic and diluted share of $.01. For the three months endedOctober 1, 2006, total stock-based compensation was $0.3 million ($0.2 million after tax), equivalent to earnings per basic and dilutive share of $.01.

As of September 30, 2007, the total unrecognized compensation expense related to nonvested awards was $1.0 million pretax, and the period over which it is expected to be recognized is approximately 1.5 years. At October1, 2006, the total unrecognized compensation expense, including stock options and performance units, was $0.9 million pretax, and the period over which it was expected to be recognized was 1.4 years.

****

No stock options were issued in the fiscal quarters ended September 30, 2007 and October 1, 2006, respectively. On August 24, 2005 and January 11, 2005, the Company entered into long-term incentive plan agreements with certainkey executives tied to fiscal years 2008 and 2007 financial performance. Compensation expense related to these awards was recognized in the 2008 and 2007 first fiscal quarters, but no shares are included in the dilutive shares, as the performance conditions had notbeen met at September 30, 2007 and October 1, 2006.

All stock options outstanding at September 30, 2007 and October 1, 2006 were dilutive and included in the computation of diluted earnings per share.  These options expire in various periods through 2014.

***Recently Issued 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. SFAS No. 157 becomes effective for the Company in its fiscal year ending June 28, 2009. The Company believes that adopting theprovisions of SFAS No. 157 will not have a material impact on its consolidated financial statements.

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 related tothose 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. An entity is prohibited fromretrospectively applying SFAS No. 159, unless it chooses early adoption. The Company believes that the adoption of the provisions of SFAS No. 159 on its consolidated financial statements, if any, will not be material when it becomes effective for the fiscal yearending June 28, 2009.

In September 2006, the FASB’s Emerging Issues Task Force (“EITF”) reached a consensus on EITF Issue No. 06-4, “Accounting for Deferred Compensation and Postretirement Benefits Aspects of EndorsementSplit-Dollar Life Insurance Arrangements” (“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 becomes effective forthe Company in its fiscal year ending June 28, 2009. The Company is believes that adopting the provisions of EITF 06-4 will not have a material impact on its consolidated financial statements.

***Recently Adopted Accounting Standards***The Company adopted the provisions of FASB Interpretation No. 48, “Accounting for Uncertainty in Income Taxes as Interpretation of FASB Statement No. 109” (“FIN 48”) on July 2, 2007. The implementation of FIN 48did not result in an adjustment to the liability for unrecognized income tax benefits. At the adoption date of July 2, 2007, there was approximately $740,000 of unrecognized tax benefits, all of which would affect the Company’s effective tax rate if recognized.At September 30, 2007, there was approximately $756,000 of unrecognized tax benefits. In the short term, management of the Company does not reasonably expect any significant changes.

The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. As of September 30, 2007, there was approximately $101,000 of accrued interest related to uncertain tax positions, $19,000of which was recognized in the three months ended September 30, 2007.

The Company’s federal income tax returns for fiscal years 2004 through 2006 are open tax years. We file in numerous state jurisdictions with varying statutes of limitation open from 2003 through 2006, depending on eachjurisdiction’s unique tax laws. The Company’s federal returns for fiscal year 2005 and fiscal year 2006 are currently being examined by the Internal Revenue Service.

In September 2006, the FASB’s EITF reached a consensus on EITF Issue No. 06-5, “Accounting for Purchases of Life Insurance—Determining the Amount That Could Be Realized in Accordance with FASB TechnicalBulletin No. 85-4, *Accounting for Purchases of Life Insurance”* (“EITF 06-5”).  This consensus explains how to determine the amount that could be realized from a life insurance contract, which is the measurement amount for the asset inaccordance with Technical Bulletin 85-4.

EITF 06-5 became effective for the Company in the current fiscal year. Adopting the provisions of EITF 06-5 did not have a material impact on its consolidated financial statements.
| **2.** | **  ** | **GROSS AND NET SALES** |
|--------|------------------|-------------------------|

Gross and net sales consist of the following:*(in thousands)*
| **                                                                    ** | **Three Months Ended** |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                              |                        |
| ** **                                                                                                                                                                                                                                                                                                                                                                                                                   | **September 30,**      |          | October 1, |
| ** **                                                                                                                                                                                                                                                                                                                                                                                                                   | **2007**               |             | 2006 |
|                                                                                                                                                                                                                                                                                                                                                                                                                              |
| Gross sales                                                                                                                                                                                                                                                                                                                                                                                                                  | ** **             | **$** | **59,349** |          |                 | $ | 50,046 |  |
| Less sales discounts                                                                                                                                                                                                                                                                                                                                                                                                         |                        | **159** |  | **     ** |  | 146 |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                              |
| Net sales                                                                                                                                                                                                                                                                                                                                                                                                                    | ** **             | **$** | **59,190** |  |  | $ | 49,900 |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                              |
|                                                                                                                                                                                                                                                                                                                                                                                                                              |                        |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                              |

**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 30,**      |          | July 1, |
| ** **                                                                                                                                                                                                                                                                                                                                                                                                                   | **2007**               |             | 2007 |
|                                                                                                                                                                                                                                                                                                                                                                                                                              |
| Billed shipments, net of progress payments                                                                                                                                                                                                                                                                                                                                                                                   | ** **             | **$** | **29,445** |          |                 | $ | 30,042 |  |
| Less allowance for doubtful accounts                                                                                                                                                                                                                                                                                                                                                                                         |                        | **264** |  | **     ** |  | 214 |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                              |
| Trade receivables, net                                                                                                                                                                                                                                                                                                                                                                                                       |                        | **29,181** |  | **     ** |  | 29,828 |  |
| Other current receivables                                                                                                                                                                                                                                                                                                                                                                                                    |                        | **299** |  |  |  | 376 |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   Total                                                                                                                                                                                                                                                                                                                                                                                                            | ** **             | **$** | **29,480** |  |  | $ | 30,204 |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                              |
|                                                                                                                                                                                                                                                                                                                                                                                                                              |                        |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                              |

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

At September 30, 2007, the amounts due from the three largest accounts receivable debtors and the percentage of total accounts receivable represented by those amounts were $5.4 million (18%), $2.6 million (9%), and $1.8million (6%). This compares with $4.4 million (15%), $2.5 million (8%), and $2.3 million (8%) at July 1, 2007.
| **4.** | **  ** | **INVENTORIES** |
|--------|------------------|-----------------|

Inventories consist of the following:*(in thousands)*
|   |                                                                           |                                            | **September 30,** |                     | July 1, |                            |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------|-------------------|--------------------------------------------------------------------------------------|---------|--------------------------------------------------------------------|
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                      | **2007**          |                                                                                      | 2007    |                                                                    |
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                      |                   |                                                                                      |         |                                                                    |
|        | Raw materials                                                                                                                                                                                                                                                                                                                                                                                                                                          | **        ** | **$**             | **40,274**                                                                           |         |             | $ | 39,369 |  |
|        | Work in progress                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                      | **21,040**        |                | 20,348  |                                                                    |
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                      |                   |                                                                                      |         |                                                                    |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                        | **       **       | **$**             | **61,314**                                                                           |         |                  | $ | 59,717 |  |
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                      |                   |                                                                                      |         |                                                                    |
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                      |                   |                                                                                      |         |                                                                    |
|        |                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                      |                   |                                                                                      |         |                                                                    |

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

For the three months ended September 30, 2007 and October 1, 2006, expense for obsolete or slow-moving inventory charged to income before taxes was $0.3 million and $0.2 million, respectively.
| **5.** | **  ** | **INTANGIBLE ASSETS, NET** |
|--------|------------------|----------------------------|

Intangible assets, net, is summarized as follows:*(in thousands)*
|          |                                                                                                                                                                                                                                                                                                                                                                       |                    |           |     | **September 30,** |                       |      |                  | July 1, |      |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------|-----------|--------------------|-------------------|--------------------------------------|--------------------------|--------------------------------------|---------|--------------------------|
|               |                                                                     |                                                                                                              | **2007**  |                    |                   |                                      | 2007                     |                                      |
|                    |                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                              |           |                    |
|                    | Software                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                          | **$**     | **3,765**          |                   |                                      | $                        | 3,830                                |         |
|                    | Less accumulated amortization                                                                                                                                                                                                                                                                                                                                                                                      |                                                                                     | **3,103** |                    |              |        | 3,043                    |        |
|                    |                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                              |           |                    |
|          | Net software                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                              |           | **662**            |                   |                                      |                          | 787                                  |         |
|                    |                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                              |           |                    |
|                    | Customer list                                                                                                                                                                                                                                                                                                                                                                                                      |                                                                                                              | **3,400** |                    |                   |                                      | 3,400                    |                                      |
|                    | Less accumulated amortization                                                                                                                                                                                                                                                                                                                                                                                      |                                                                                                              | **2,060** |                    |                   |                                      | 1,918                    |                                      |
|                    |                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                              |           |                    |
|          | Net customer list                                                                                                                                                                                                                                                                                                                                                                                                  |                                                                                                              | **1,340** |                    |                   |                                      | 1,482                    |                                      |
|                    |                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                              |           |                    |
|               | Other, net                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                                              |           | **---**            |                   |                                      |                          | 13                                   |         |
|                    |                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                              |           |                    |
|     | Total intangible assets, net                                                                                                                                                                                                                                                                                                                                                                                       | **$**                                                                                                        | **2,002** |                    |                   | $                                    | 2,282                    |                                      |
|                    |                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                              |           |                    |
|                    |                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                              |           |                    |                   |                                      |                          |                                      |         |                          |
|                    |                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                                                              |           |                    |
|                    |                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                              |           |                    |                   |                                      |                          |                                      |         |                          |

Intangibles are amortized over a three-to-six-year period.  Amortization expense was $0.3 million for each of the three-month periods ended September 30, 2007 and October 1, 2006.

The Company anticipates that amortization expense will approximate $1.2 million for fiscal year 2008, $1.1 million for fiscal year 2009, $0.8 million for fiscal year 2010, $0.4 million for fiscal year 2011 and $0.4million for fiscal year 2012.
| **6.** | **  ** | **GOODWILL** |
|--------|------------------|--------------|

Goodwill is summarized as follows:*(in thousands)*
|    |                                                                          | **September 30,**  |     |            |      | July 1,            |     |
|--------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------|--------------------|--------------------------------|--------------------------|--------------------|--------------------|
|         |                                                                                                                                                                                                                                                                                                                                                                                                                                             |                    |                    |                                | **2007**                 |                    |                    |  | 2007 |  |
|              |                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                    |                    |                                |
|         | Goodwill                                                                                                                                                                                                                                                                                                                                                                                                                                         | **$**              | **24,492**         |       |                | $                  | 24,492             |             |
|              | Less accumulated amortization                                                                                                                                                                                                                                                                                                                                                                                                                    |     | **200**            |                                |                          |     | 200                |  |
|              |                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                    |                    |                                |
|              |   Net goodwill                                                                                                                                                                                                                                                                                                                                                                                                                         |                    | **$**              | **24,292**                     |                          |                    | $                  | 24,292 |  |
|              |                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                    |                    |                                |
|              |                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                    |                    |                                |                          |                    |                    |  |  |  |
|              |                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                    |                    |                                |
|              |                                                                                                                                                                                                                                                                                                                                                                                                                                             |                    |                    |                                |                          |                    |                    |  |  |  |

Impairment is tested annually in the fourth quarter of each fiscal year, or more frequently if events or circumstances change.  There were no changes in the carrying amount of goodwill at September 30, 2007 and July 1,2007.
| **7.** | **  ** | **OTHER ASSETS** |
|--------|------------------|------------------|

Other assets is summarized as follows:*(in thousands)*
|    |                                                                            | **September 30,**                                |     |            |      | July 1,            |     |
|--------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------|--------------------|--------------------------------|--------------------------|--------------------|--------------------|
|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                  |                    |                                | **2007**                 |                    |                    |  | 2007 |  |
|              |                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                  |                    |                                |
|         | Cash value of life insurance                                                                                                                                                                                                                                                                                                                                                                                                                                 | **$**                                            | **4,579**          |       |                | $                  | 4,390              |             |
|              | Deposits, licenses and other, net                                                                                                                                                                                                                                                                                                                                                                                                                            |                                   | **155**            |                                |                          |     | 154                |  |
|              | Securities held for sale                                                                                                                                                                                                                                                                                                                                                                                                                                     |                                                  | **72**             |                                |                          |                    | 85                 |  |
|              | Deferred financing costs, net                                                                                                                                                                                                                                                                                                                                                                                                                                |          |                    | **91**                         |                          |                    |                    | 108 |  |
|              | Other                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                  |                    | **36**                         |                          |                    |                    | 35 |  |
|              |                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                  |                    |                                |
|              |   Total                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                  | **$**              | **4,933**                      |                          |                    | $                  | 4,772 |  |
|              |                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                  |                    |                                |
|              |                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                  |                    |                                |                          |                    |                    |  |  |  |
|              |                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                  |                    |                                |
|              |                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                  |                    |                                |                          |                    |                    |  |  |  |

The Company’s investment in securities held for sale of $72,000 at September 30, 2007 consists of 1.6 million shares of Norwood Abbey Ltd.  This investment is the result of shares and options acquired as apartial settlement of a note receivable in December 1999. In the quarter ended September 30, 2007, the Company recorded an other-than-temporary write-down on the 1.6 million shares of $13,000, compared with a $105,000 write down in the quarter ended October 1,2006.
| **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 30,** |                                                                     |      |      | July 1, |                                                                                                           |
|--------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------|------------------------------------------------------------------------------------|--------------------------|--------------------------|---------|--------------------------------------------------------------------------------------------------------------------------|
|         |                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                   |                                                                                    |                          | **2007**                 |         |                                                                                                                          |  | 2007 |  |
|              |                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                   |                                                                                    |                          |
|              | **Short-term borrowings:**                                                                                                                                                                                                                                                                                                                                                                                                                                   |                   | **             ** |                          |                          |         |                                                              |  |
|              |  Revolving credit agreement:                                                                                                                                                                                                                                                                                                                                                                                                                            |                   |                                                                                    |                          |                          |         |                                                                                                                          |  |
|              |   Balance at quarter-end                                                                                                                                                                                                                                                                                                                                                                                                                           | **$**             | **13,600**                                                                         |                          |                          | $       | 14,825                                                                                                                   |  |
|              |   Interest rate at quarter-end                                                                                                                                                                                                                                                                                                                                                                                                                     |                   | **6.84**                                                                           | **%**                    |                          |         | 6.91                                                                                                                     | % |
|              |   Average amount of short-term borrowings                                                                                                                                                                                                                                                                                                                                                                                                          | **  **  |                                                                                    |                          |                          |         |                                                                                                                          |  |
|              |    outstanding during period                                                                                                                                                                                                                                                                                                                                                                                                                  | **$**             | **12,872**                                                                         |                          |                          | $       | 13,486                                                                                                                   |  |
|              |   Average interest rate for period                                                                                                                                                                                                                                                                                                                                                                                                                 |                   | **6.86**                                                                           | **%**                    |                          |         | 7.29                                                                                                                     | % |
|              |   Maximum short-term borrowings at                                                                                                                                                                                                                                                                                                                                                                                                                 |                   |                                                                                    |                          |                          |         |                                                                                                                          |  |
|              |    any month-end                                                                                                                                                                                                                                                                                                                                                                                                                              | **$**             | **13,725**                                                                         |                          |           | $       | 16,675                                                                                                                   |  |
|              |                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                   |                                                                                    |                          |
|              |                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                   |                                                                                    |                          |                          |         |                                                                                                                          |  |
|              |                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                   |                                                                                    |                          |
|              | **Senior long-term debt:**                                                                                                                                                                                                                                                                                                                                                                                                                                   |                   |                                                                                    |                          |                          |         |                      |  |
|              |  Senior lender:                                                                                                                                                                                                                                                                                                                                                                                                                                         |                   |                                                                                    |                          |                          |         |                                                                                                                          |  |  |
|              |    Term loan                                                                                                                                                                                                                                                                                                                                                                                                                                  |                   | **$**                                                                              | **9,000**                |                          |         | $                                                                                                                        | 10,500 |  |
|         |  Other                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                   | **857**                                                                            |                          |                          |         | 931                                                                                                                      |  |
|              |                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                   |                                                                                    |                          |
|         | Total senior long-term debt                                                                                                                                                                                                                                                                                                                                                                                                                                  |                   | **9,857**                                                                          |                          |                          |         | 11,431                                                                                                                   |  |
|              | Less current maturities                                                                                                                                                                                                                                                                                                                                                                                                                                      |                   |                                                                                    | **6,305**                |                          |         |                                                                                                                          | 6,300 |  |
|              |                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                   |                                                                                    |                          |
|              | Long-term debt, less current maturities                                                                                                                                                                                                                                                                                                                                                                                                                      | **$**             | **3,552**                                                                          |                          |                          | $       | 5,131                                                                                                                    |  |
|              |                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                   |                                                                                    |                          |
|              |                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                   |                                                                                    |                          |                          |         |                                                                                                                          |  |  |  |
|              |                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                   |                                                                                    |                          |
|              |                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                   |                                                                                    |                          |                          |         |                                                                                                                          |  |  |  |

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

The Company entered into a senior loan agreement on February 17, 2004, which was amended in February 2006.  The Company incurred $330,000 of financing costs that have been deferred and are being amortized over a periodbeginning May 2004 and ending February 2009.  At September 30, 2007, the unamortized amount was $91,000.

**Senior Lender:**

The Company entered into a senior secured loan agreement with a group of banks on February 17, 2004. The following is a summary of the agreement:
|  •                   |   | A revolving credit facility, up to $30.0 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 30, 2007, outstanding loans under the revolving credit facility were $13.6 million; letters of credit issued were $1.3 million; and an aggregate of $15.1 million was available under the revolving credit facility. Thiscredit facility matures on February 17, 2009.                                                                                                                                                                                                                                                                                                                                      |              |
|--------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------|
|       |   |                                                                                                                                                                                    |                                                                          |
|  •                   |   | A $25.0 million term loan amortized beginning May 2004, at a quarterly rate of $1.0 million, increased to $1.25 million in May 2006 and increased to $1.5 million in May 2007.  Final maturity is February2009.  As of September 30, 2007, the amount outstanding was $9.0 million.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                          |
|            |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |                                                                          |
|  •                   |        | 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 30, 2007, the average rate was approximately 6.82%.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                                          |
|       |   |                                                                                                                                                 |                                                                          |
|  •                   |   | 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 30, 2007.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                          |
|            |   |                                                                                                                                                           |                                                                     |

***Other Long-Term Debt:***Other long-term debt includes capital lease agreements with outstanding balances totaling $438,000 for the three months ended September 30, 2007 and $470,000 at July 1, 2007.

The aggregate maturities of long-term obligations are as follows:*(in thousands)*
| **Fiscal Year**               |
|-------------------------------|
|                               |
| 2008                          | ...............................................................  | $ | 4,728 |   |
| 2009                          | ...............................................................  |      | 4,682 |   |
| 2010                          | ...............................................................  |       | 146 |   |
| 2011                          | ...............................................................  |       | 51 |   |
| 2012                          | ...............................................................  |       | 250 |   |
|                               |
|     Total | ...............................................................  | $ | 9,857 |   |
|                               |
| **9.** | **  ** | **CASH FLOWS** |
|--------|------------------|----------------|

****

Total cash payments for interest for the three months ended September 30, 2007 and October 1, 2006 amounted to $456,000 and $646,000, respectively.  Net cash payments for federal and state income taxes were $4,000 and $0for the three months ended September 30, 2007 and October 1, 2006, 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 30,** |                                      | October 1, |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------|------------------------------------------------|------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |                                                                             |                   | **2007**                                       |            | 2006 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|  Net earnings                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | **$**                                                                                                                                                                                                                                                                                                                                                                                                                                                              | **2,520**         |                                                | $          | 2,411 |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                   |                                                |            |  |  |
| Basic net earnings per share                                                                                                                                                                                                                                                                                                                                                                                                                                                                           | **$**                                                                                                                                                                                                                                                                                                                                                                                                                                                              | **0.17**          | **       ** | $          | 0.16 |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                   |                                                |            |  |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                   |                                                |            |  |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                   |                                                |            |  |  |
| Diluted net earnings per share                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                                                                                                                                                                                                                                                                                                                                                                                          | **$**             | **0.16**                                       |            | $ | 0.15 |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                   |                                                |            |  |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |

Basic earnings per share are calculated using the weighted-average number of common shares outstanding during the period.  Diluted earnings per share are calculated 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 30,**      |      | October 1, |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                                      | **2007**               |  | 2006 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                      |                        |  |  |  |
| Average common shares outstanding – basic                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | **        ** | **15,200**             |        |  | 15,121 |   |
| Dilutive options and restrictive shares                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                      | **818**                |  |  | 863 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                      |                        |  |  |  |
| Adjusted average common shares outstanding -- diluted                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                      | **16,018**             |  |  | 15,984 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                      |                        |  |  |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                      |                        |  |  |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                      |                        |  |  |  |

All stock options outstanding and nonvested restricted shares at September 30, 2007 and October 1, 2006 were dilutive and included in the computation of diluted earnings per share. These options expire in various periodsthrough 2014. The restricted 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 30, 2007 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.

As of September 30 2007, the total unrecognized compensation expense related to nonvested awards, including stock options, restricted shares and performance units, was $1.0 million pretax and the period over which it isexpected to be recognized is approximately 1.5 years.

A summary of the Company’s Plans as of September 30, 2007 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 July 1, 2007                                                                                                                                                                                                                                                                                                  |                      | 1,581,313                                                                                      |                                     |            | $                                | 3.90       |                                     |               | 1,581,313                                      |       | $ | 3.90 |   |   |
|                                                                                                                                                                                                                                                                                                                              |
| **                                                    ** |                      | **               ** |                                     |            |                                  |            |                                     |               |                                                |  |  |  |  |  |   |
| **Canceled**                                                                                                                                                                                                                                                                                                                 |                      | **---**                                                                                        |                                     |            |                                  |            |                                     |               |                                                |  |  | **   ** |  |  |   |
| **Granted**                                                                                                                                                                                                                                                                                                                  |                      | **---**                                                                                        |                                     |            |                                  |            |                                     |               |                                                |  |  | **$** | **---** |  |   |
| **Exercised**                                                                                                                                                                                                                                                                                                                |                      | **(24,500**                                                                                    | **)**                               |            | **8.54**                         |            |                                     |               |                                                |  |  |  |  |  |   |
|                                                                                                                                                                                                                                                                                                                              |
| **Outstanding at September 30, 2007**                                                                                                                                                                                                                                                                                        | **1,556,813**        |                                                                                                |                                     | **$**      | **3.83**                         |            | **  **                    | **1,556,813** |                                                | **$** | **3.83** | **        ** |  |  |   |
|                                                                                                                                                                                                                                                                                                                              |
|                                                                                                                                                                                                                                                                                                                              |
|                                                                                                                                                                                                                                                                                                                              |

***Stock Options***

The following table summarizes information about stock options outstanding:
|                                                                                                                                                                                                                                                                    |            | **Outstanding and Exercisable Options**                                                          |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------|--------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                    |            |                                                                                                  |  |  |  |  |  |  |
| **Range of Exercise Prices**                                                                                                                                                                                                                                       | ** ** | **Number Outstanding at September 30, 2007**                                                     | **  ** | **Weighted Average Remaining Contractual Life (In Years)** | **  ** | **Weighted Average Exercise Price** | **  ** | **Aggregate Intrinsic Value****(1)*********(in thousands)***** ** |
|                                                                                                                                                                                                                                                                    |
| $2.50 - 3.00                                                                                                                                                                                                                                                       |            | 988,836                                                                                          |  | 2.7 |  |  | $ | 2.58 |  |  | $ | 9,222 |  |
| $3.03 - 5.96                                                                                                                                                                                                                                                       |            | 288,200                                                                                          |  | 5.4 |  |  | 3.51 |  | 2,420 |  |
| $5.97 - 8.54                                                                                                                                                                                                                                                       |            | 279,777                                                                                          |  | 6.9 |  |  | 8.54 |  | 943 |  |
|                                                                                                                                                                                                                                                                    |
|                                             |            | 1,556,813                                                                                        |  | 4.0 |  | $ | 3.83 |  | $ | 12,585 |  |
|                                                                                                                                                                                                                                                                    |
|                                                                                                                                                                                                                                                                    |
|                                                                                                                                                                                                                                                                    |
|                                                                                                                                                                                                                                                                    |            |                  |  |  |  |  |  |  |  |  |  |

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

The total intrinsic value of stock options exercised during the three months ended September 30, 2007 was $103,000. The exercise period for all stock options generally may not exceed 10 years from the date of grant. Stockoption grants to individuals generally become exercisable over a service period of one to five years.

There were no stock options granted in the fiscal quarter ended September 30, 2007.

***Performance Units and Restricted Stock***

The Company entered into long-term incentive plan agreements with certain key executives under the LTIP in January 2005 and August 2005, respectively. These agreements provide for the issuance of performance units, which willbe settled in stock subject to the achievement of the Company’s financial goals. Settlement will be made pursuant to a range of opportunities relative to net earnings. No settlement will occur for results below the minimum threshold and additional shares shallbe issued if the performance exceeds the targeted goals. The compensation cost of performance units is subject to adjustment based upon the attainability of the target goals.

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

During the three months ended September 30, 2007 the Company issued 108,084 shares of restricted stock, subject to the two-year vesting condition, associated with the fiscal 2007 award. In addition, the Company recordedcompensation expense for the awards granted for fiscal 2007. During the three months ended October 1, 2006, the Company issued 79,643 shares of restricted stock subject to the two-year vesting condition associated with the 2006 award.

During the three months ended September 30, 2007, the compensation expense related to the LTIP was $271,000. During the three months ended October 1, 2006, the compensation expense related to the LTIP was $260,000 ($160,000after tax).

The weighted-average grant date fair value of the restricted stock issued during the three months ended September 30, 2007 was $12.29 per share. The weighted-average grant date fair value of the restrictedstock issued during the three months ended October 1, 2006 was $13.27 per share.

----

|                                                                                                                                                     | **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 manufactures and designs high-performance electronic, electromechanical and interconnect systems on a contract basis forcustomers in diverse technology-driven markets.  The Company’s core competencies are to provide complete electronic systems solutions, including the manufacturing, engineering and design of interconnect systems, circuit card assemblies and high-levelassemblies for its customers’ specialized applications.

The Company markets its services to customers desiring an engineering and manufacturing partner capable of developing and providing high-reliability electronic and electromechanical equipment, including products capable ofperforming in harsh environmental conditions, such as high and low temperature, severe shock and vibration.  The Company serves customers in a variety of markets including defense, government systems, aerospace, natural resources, industrial and other commercialmarkets.   The Company’s engineering and manufacturing facilities are located in Arkansas, Missouri, Oklahoma, Texas and Pennsylvania.  The Company employs approximately 1,350 people, including approximately 1,160 people who provide support forproduction activities (including assembly, test and engineering) and approximately 190 people who provide administrative support.

**Results of Operations - Three Months Ended September 30, 2007**

*********Backlog****(in thousands)*
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | **Three Months Ended**                                                                                                                     |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                            |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                         | **September 30,** | **           ** | October 1, |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | Change                                                                                                                                     | **2007** |  | 2006 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                            |  |
| Backlog                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | $33,765                                                                                                                                    |  | **$** | **245,535** |  | **    ** | $ | 211,770 |    |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                            |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                            |  |  |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                            |  |
|                                                                                                                                                                      |

The growth in backlog is the result of a sales and marketing effort that focuses on matching the Company’s core competencies and the application of those competencies to the outsourcing needs of targeted large customersin a variety of industries.  Approximately $50.8 million of the backlog at September 30, 2007 is scheduled to ship beyond the next 12 months pursuant to the shipment schedules contained in those contracts.  This compares with $51.9 million at October 1,2006. 

***Net Sales****(dollars in thousands)*
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | **Three Months Ended**                                                                                                                     |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                            |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                         | **September 30,** | **           ** | October 1, |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | Change                                                                                                                                     | **2007** |  | 2006 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                            |  |
| Net sales                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | 18.6%                                                                                                                                      |  | **$** | **59,190** |  | **    ** | $ | 49,900 |    |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                            |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                            |  |  |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                                                                                            |  |
|                                                                                                                                                                      |

The largest contributor to fiscal 2008 first-quarter revenues was shipments to defense customers, representing $22.9 million of sales, versus $18.5 million in 2006.  During the current year’s first quarter, LaBargeprovided 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 $15.4 million in the first quarter of fiscal 2008,compared with $11.1 million in the year-ago period. In addition, industrial customers represented $11.0 million of fiscal 2008 first-quarter revenue, compared with $7.6 million in the year-ago period. Shipments to government systems customers represented $1.6million of fiscal 2008 first-quarter revenue, compared with $5.9 million in the year-ago period. 

Sales to the Company’s 10 largest customers represented 69% of total revenue in the first quarter of fiscal 2008, compared with 69% for the same period of fiscal 2007.  The Company’s top threecustomers accounted for 13%, 12% and 11%, respectively, of total sales for the first quarter of fiscal 2008. This compares with $4.4 million (15%), $2.5 million (8%), and $2.3 million (8%), respectively, for the first quarter of fiscal 2008.

***Gross Profit****(dollars in thousands)*
|                                                          |                                                                                    | **Three Months Ended**       |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------|------------------------------|
|                                                                                                                                                                                                                                                                                                                                                  |                                                                                    |
|                                                                                                                                                                                  | **            **Change | **    ** | **September 30, 2007** | **          ** | October 1, 2006 |
|                                                                                                                                                                                                                                                                                                                                                  |                                                                                    |                              |  |  |
| Gross profit Gross margin                                                                                                                                                                                                                                                                                                                        |                                                                     | $                            | 715 (2.2 | ) points | **   ** | **$** | **11,372 19.2** | **%** |  | $ | 10,657 21.4 | % |
|                                                                                                                                                                                                                                                                                                                                                  |                                                                                    |                              |
|                                                                                                                                                                                                                                                                                                                                                  |                                                                                    |                              |
|                                                                                                                                                                                                                                                                                                                                                  |                                                                                    |                              |  |  |

The gross profit margin for the three months ended September 30, 2007 decreased by 2.2 percentage points from the prior year period.

During the fiscal year ended July 1, 2007, the Company’s gross margins were adversely affected by higher than anticipated labor and material costs on certain contracts. For the three months ended September 30, 2007,gross margin continues to be impacted by shipments under these contracts.

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.

******

***Selling and Administrative Expenses****(dollars in thousands)*
|                                                                       |                                                         | **Three Months Ended** |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------|------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                  |                                                         |
|                                                                  |          Change | **   ** | **September 30, 2007** | **         ** | October 1, 2006 |
|                                                                                                                                                                                                                                                                                                                                                                                                  |                                                         |                        |
| Selling and administrative expenses                                                                                                                                                                                                                                                                                                                                                              | $                                                       | 956                    |  | **$** | **6,947** |  | ** ** | $ | 5,991 |         |
| Percent of sales                                                                                                                                                                                                                                                                                                                                                                                 |                                     | (0.3                   | ) points | **       ** | **11.7** | **%** | **   ** |           | 12.0 | % |
|                                                                                                                                                                                                                                                                                                                                                                                                  |                                                         |                        |
|                                                                                                                                                                                                                                                                                                                                                                                                  |                                                         |                        |  |  |
|                                                                                                                                                                                                                                                                                                                                                                                                  |                                                         |                        |

Selling and administrative expenses increased over prior periods, primarily as a result of increases in: compensation cost and related fringes of $315,000 due to wage inflation and higher accrued incentive pay; professional services of $228,000; commissions of$62,000 due to higher sales; general insurance expense of $97,000; medical insurance of $46,000; spending on computer maintenance of $72,000; and $94,000 for contract labor.

As a percentage of sales, selling and administrative expenses declined in the quarter ended September 30, 2007 compared with the year ago period.

***Interest Expense****(in thousands)*
|                                                                      |        | **Three Months Ended** |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                          |        |
|                                                                                                                                                                                                                                                                                                                                                                                                           | Change | **September 30, 2007** | **     ** | October 1 2006 |
|                                                                                                                                                                                                                                                                                                                                                                                                                          |        |                        |
|  Interest expense                                                                                                                                                                                                                                                                                                                                                                                                   | $      | (224                   | )        | **$** | **427** |  | **       ** | $ | 651 |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                          |        |                        |
|                                                                                                                                                                                                                                                                                                                                                                                                                          |        |                        |
|                                                                                                                                                                                                                                                                                                                                                                                                                          |        |                        |

Interest expense declined for the three months ended September 30, 2007.  The reduction reflects lower average debt levels which more than offset the impact of higher average interest rates.

Average interest rates during the current-year period were 6.8%, compared with 6.5% in the comparable quarter a year ago.

******

***Income Tax Expense****(in thousands)*
|                                                                         |        | **Three Months Ended** |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                            |        |
|                                                                                                                                                                                                                                                                                                                                                                                                                   | Change | **September 30, 2007** | **      ** | October 1, 2006 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                            |        |                        |
| Income tax expense                                                                                                                                                                                                                                                                                                                                                                                                                         | $      | (92                    | )     | **$** | **1,468** | **   ** | **      ** | $ | 1,560 |  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                            |        |                        |
|                                                                                                                                                                                                                                                                                                                                                                                                                                            |        |                        |
|                                                                                                                                                                                                                                                                                                                                                                                                                                            |        |                        |

The income tax rate was 36.8% and 39.3% for the three-month periods ended September 30, 2007 and October 1, 2006, respectively. The effective income tax rate for the three-month period ended September 30, 2007, excludingthe impact of additional Sub Part F income, was 37.3%, compared with 38.4% for the three-month period ended October 1, 2006. The lower effective rate in fiscal year 2008 primarily results from the increase in the manufacturing deduction under the American JobsCreation Act of 2004. The deduction is being phased in over three years.

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

***Stockholders’ Equity and Debt****(in thousands)*
|                                                                               | **September 30,**                                                                  | July 1,    |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------|------------|
|                                                                | **2007**                                                                           | 2007       |
|                                                                                                                                                                                                                                                                                                                                                                                      |                                                                                    |            |
| Stockholders’ equity                                                                                                                                                                                                                                                                                                                                                           | **    **                                                       | **$**      | **79,623** |             |       | $ | 76,410 |          |
| Debt                                                                                                                                                                                                                                                                                                                                                                                 | **             ** | **23,457** | **     ** |     | 26,256 |  |
|                                                                                                                                                                                                                                                                                                                                                                                      |                                                                                    |            |

The Company’s operations provided $5.1 million of net cash in the three months ended September 30, 2007.

**Senior Lender:**

The Company entered into a senior secured loan agreement with a group of banks on February 17, 2004. The following is a summary of the agreement:
|  •                   |   | A revolving credit facility, up to $30.0 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 30, 2007, outstanding loans under the revolving credit facility were $13.6 million; letters of credit issued were $1.3 million; and an aggregate of $15.1 million was available under the revolving credit facility. Thiscredit facility matures on February 17, 2009.                                                                                                                                                                                                                                                                                                                                      |              |
|--------------------------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------|
|       |   |                                                                                                                                                                                    |                                                                          |
|  •                   |   | A $25.0 million term loan amortized beginning May 2004, at a quarterly rate of $1.0 million, increased to $1.25 million in May 2006 and increased to $1.5 million in May 2007.  Final maturity is February2009.  As of September 30, 2007, the amount outstanding was $9.0 million.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |                                                                          |
|                                |        |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                          |
|  •                   |        | 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 30, 2007, the average rate was approximately 6.82%.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                                          |
|       |   |                                                                                                                                                 |                                                                          |
|  •                   |   | 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 30, 2007.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |                                                                          |
|            |   |                                                                                                                                                           |                                                                     |

***Other Long-Term Debt:***Other long-term debt includes capital lease agreements totaling $438,000 at September 30, 2007, and $470,000 at July 1, 2007.

The aggregate maturities of long-term obligations are as follows:*(in thousands)*
| **Fiscal Year**               |
|-------------------------------|
|                               |
| 2008                          | ...............................................................  | $ | 4,728 |   |
| 2009                          | ...............................................................  |      | 4,682 |   |
| 2010                          | ...............................................................  |       | 146 |   |
| 2011                          | ...............................................................  |       | 51 |   |
| 2012                          | ...............................................................  |       | 250 |   |
|                               |
|     Total | ...............................................................  | $ | 9,857 |   |
|                               |

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

The following discussion of critical accounting policies is intended to bring to the attention of readers those accounting policies that management believes are critical to the Company’s consolidated financial statementsand other financial disclosures.  It is not intended to be a comprehensive list of all of our significant accounting policies that are more fully described in the Notes to the Consolidated Financial Statements included in the Company’s Annual Report onForm 10-K for the fiscal year ended July 1, 2007.

***Revenue Recognition and Cost of Sales***Revenue is generally recognized when title transfers, which is usually upon shipment.  On a very limited number of contracts, at a customer’s request, the Company will recognize revenue when ownership passes. As of September30, 2007, and October 1, 2006, the Company has recognized revenue under these arrangements of $2.9 million and $2.4 million, respectively. The Company recognizes revenue for storage and other related services as the services are provided.

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.  Since some contracts extend over a long period of time, revisions in cost during the progress of work have the effect of adjusting current period earnings applicable to performance in prior periods. When the current contract cost estimate indicatesa loss, provision is made for the total anticipated loss in the period the loss becomes evident.

During fiscal year 2007, the Company entered into a new significant agreement with an industrial customer to manufacture certain assemblies and supply certain parts. Revenue related to the manufactured assemblies will berecognized as gross revenue when the product is shipped. Under the Financial Accounting Standards Board’s (“FASB”) Emerging Issues Task Force (“EITF”) No. 99-19, “Reporting Revenue Gross as a Principle versus Net as anAgent,” the cost of the supplied parts will be netted against the invoice price to determine net sales when the part is shipped. During the quarter ended September 30, 2007, sales under this contract were $731,000 related to the manufactured assemblies and$33,000 related to the supplied parts.

***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 additional write-down isnecessary.  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 those projected bymanagement, additional inventory write-downs may be required.  For the quarters ended September 30, 2007 and October 1, 2006, expense for obsolete or slow-moving inventory charged to income before income taxes was $0.3 million and $0.2 million,respectively.

***Goodwill and Other Intangibles***In accordance with Statement of Financial Accounting Standards (“SFAS”) No. 142, “Goodwill and Other Intangible Assets,” intangible assets deemed to have indefinite lives and goodwill are not subject toamortization. All other intangible assets are amortized over their estimated useful lives.  Goodwill and other intangible assets not subject to amortization are tested for impairment annually or more frequently if events or changes in circumstances indicate thatthe asset might be impaired.  This testing requires comparison of carrying values to fair values, and when appropriate, the carrying value of impaired assets is reduced to fair value.  During the fourth quarter of fiscal year 2007, the Company completed itsquarterly impairment test and determined that the carrying value is reasonable. Different assumptions regarding such factors as sales levels and price changes, labor and material cost changes, interest rates and productivity could affect such valuations.

***Recently Issued Accounting Standards***In September 2006, the FASB issued SFAS No. 157, “Fair Value Measurements” (“SFAS No. 157”), to clarify the definition of fair value, establish a framework for measuring fair value and expand the disclosures onfair value measurements. SFAS No. 157 becomes effective for the Company in its fiscal year ending June 28, 2009. The Company believes that adopting the provisions of SFAS No. 157 will not have a material impact on its consolidated financial statements.

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 earning at each subsequent reporting date, and recognize upfront costs and fees related tothose 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. An entity is prohibited fromretrospectively applying SFAS No. 159, unless it chooses early adoption. The Company believes that the adoption of the provisions of SFAS No. 159 on its consolidated financial statements, if any, will not be material when it becomes effective for the fiscal yearending 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 becomes effective for the Company in its fiscal yearending June 28, 2009. The Company believes that adopting the provisions of EITF 06-4 will not have a material impact on its consolidated financial statements.

***Recently Adopted Accounting Standards***The Company adopted the provisions of FASB Interpretation No. 48, “Accounting for Uncertainty in Income Taxes as Interpretation of FASB Statement No. 109” (“FIN 48”) on July 2, 2007. The implementation of FIN 48did not result in an adjustment to the liability for unrecognized income tax benefits. At the adoption date of July 2, 2007, there was approximately $740,000 of unrecognized tax benefits, all of which would affect the Company’s effective tax rate if recognized.At September 30, 2007, there was approximately $756,000 of unrecognized tax benefits. In the short term, management of the Company does not reasonably expect any significant changes.

The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. As of September 30, 2007, there was approximately $101,000 of accrued interest related to uncertain tax positions, $19,000of which was recognized in the three months ended September 30, 2007.

The Company’s federal income tax returns for fiscal years 2004 through 2006 are open tax years. We file in numerous state jurisdictions with varying statutes of limitation open from 2003 through 2006, depending on eachjurisdiction’s unique tax laws. The Company’s federal returns for fiscal year 2005 and fiscal year 2006 are currently being examined by the Internal Revenue Service.

In September 2006, the FASB’s EITF reached a consensus on EITF Issue No. 06-5, “Accounting for Purchases of Life Insurance—Determining the Amount That Could Be Realized in Accordance with FASB TechnicalBulletin No. 85-4, *Accounting for Purchases of Life Insurance”* (“EITF 06-5”).  This consensus explains how to determine the amount that could be realized from a life insurance contract, which is the measurement amount for the asset inaccordance with Technical Bulletin 85-4.

EITF 06-5 became effective for the Company in the 2008 fiscal year. Adopting the provisions of EITF 06-5 did not have a material impact on its consolidated financial statements.

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| **ITEM 3.**                                                                                                                                            | **Quantitative and Qualitative Disclosures About Market Risk**                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
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| **                        **   | **                                                                                                                                                       **                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|                                                                                                                                                        | *Foreign Currency Risk*No information has been included hereunder because the Company’s foreign sales in each of fiscal quarters ended September 30, 2007, and October 1, 2006, 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 30, 2007, the Company had $23.5 million in total debt.  Industrial revenue bonds and capital leases totaling $857,000 have a fixed rate and are not subject to interest rate risk. The interest rate on the remaining $22.6million is subject to fluctuation.  If interest rates increased 1%, the additional interest cost to the Company would be approximately $226,000 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 2008, 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 6.**                                                  | **Exhibits**                                     |                                                                                                                                                                 |
|--------------------------------------------------------------|--------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                              |                         |
| 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:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | November 5, 2007                           |
| By:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    | /S/ DONALD H. NONNENKAMP                   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |                                            |
| Name:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | Donald H. Nonnenkamp                       |
|                                                                                                                                                                                                                                                                                                                                                              | Vice President and Chief Financial Officer |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  | Principal Financial Officer                |