Table          of contents

----

**UNITED      STATES**

**SECURITIES      AND EXCHANGE COMMISSION**

**Washington,      D. C. 20549**

**Form      10-Q/A**

**Amendment      No. 1**

*,*

**0-13763**

*(Commission      file      No.)*

**TECHNOLOGY RESEARCH CORPORATION**

*(Exact      name of registrant as specified in its charter)*

| **FLORIDA**                                                                                    | **59-2095002**                                        |
|------------------------------------------------------------------------------------------------|-------------------------------------------------------|
| *(State                or other jurisdiction of incorporation or                organization)* | *(I.R.S.                employer identification no.)* |

**5250-140th      Avenue North **

**Clearwater, Florida 33760**

*(Address      of principal executive offices)*

**(727)      535-0572**

*(Registrant’s      telephone number, including area code)*

|  Large                accelerated                filer o |  Accelerated                filer o |  Non-accelerated                filer þ |
|--------------------------------------------------------------------|-----------------------------------------------|--------------------------------------------------------|

----

**EXPLANATORY      NOTE**

**RESTATEMENT**

*Overview*

|   | ·                                 An increase in current income tax expense and current income tax                payable                on deemed dividends from foreign operations triggered by borrowings                under                a joint credit facility with our wholly-owned foreign                subsidiary, |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ·                 An                increase in deferred income tax expense and deferred income tax liability                due to inability to assert the indefinite reversal criteria of APB                23,                *Accounting for Income Taxes – Special Areas*, until the fourth                quarter of fiscal 2006 on earnings from foreign                operations |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ·                                 An increase in interest expense and interest payable due on the additional                income taxes and related income tax                effects. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

***Effects      of      Restatement***

|                                                            |   | **December                31, 2006** |   | **March                31, 2006** |   |
|-----------------------------------------------------------------|--------|--------------------------------------|--------|-----------------------------------|--------|
|                                                            |   | **As****previously****reported**     |   | **As****restated**                |   | **As****previously****reported** |   | **As****restated** |   |
|                                                            |   | ***(in thousands)***            |   |
| **Consolidated                Balance Sheets**                  |   |                                 |   |                              |   |   |   |   |   |
| Deferred                income taxes                            |   | $                                    | 681    |                              | $      | 712 |   | $ | 445 |   | $ | 455 |   |
| Total                current assets                             |   | 21,860                               |   | 21,891                            |   | 24,125 |   | 24,135 |   |
| Total                assets                                     |   | 28,758                               |   | 28,789                            |   | 29,134 |   | 29,144 |   |
|                                                            |   |                                 |   |                              |   |   |   |   |   |
| Accrued                expenses                                 |   | 941                                  |   | 1,026                             |   | 1,296 |   | 1,323 |   |
| Income                taxes payable                             |   | 884                                  |   | 1,995                             |   | 357 |   | 1,468 |   |
| Total                current liabilities                        |   | 7,083                                |   | 8,279                             |   | 7,604 |   | 8,742 |   |
|                                                            |   |                                 |   |                              |   |   |   |   |   |
| Total                liabilities                                |   | 7,305                                |   | 8,501                             |   | 9,848 |   | 10,986 |   |
|                                                            |   |                                 |   |                              |   |   |   |   |   |
| Retained                earnings                                |   | 9,261                                |   | 8,096                             |   | 7,573 |   | 6,445 |   |
| Total                stockholders’ equity                 |   | 21,453                               |   | 20,288                            |   | 19,286 |   | 18,158 |   |
|                                                            |   |                                 |   |                              |   |   |   |   |   |
| Total                liabilities and stockholders’ equity |   | $                                    | 28,758 |                              | $      | 28,789 |   | $ | 29,134 |   | $ | 29,144 |   |

|                                                    |   | **Three                months ended**** December                31, 2006** |   | **Three                months ended**** December                31, 2005** |   |
|---------------------------------------------------------|--------|---------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------|--------|
|                                                    |   | **As****previously****reported**                                                |   | **As****restated**                                                              |   | **As****previously****reported** |   | **As****restated** |   |
|                                                    |   | ***(in thousands, except per share amounts)***         |
| **Consolidated                Statement of Operations** |   |                                                                            |   |                                                                            |   |   |   |   |   |
| Interest                expense                         |   | $                                                                               | 18     |                                                                            | $      | 42 |   | $ | 54 |   | $ | 63 |   |
| Income                before income taxes               |   | 3,200                                                                           |   | 3,176                                                                           |   | 1,032 |   | 1,023 |   |
| Income                tax expense                       |   | 796                                                                             |   | 787                                                                             |   | 206 |   | 358 |   |
| Net                income                               |   | $                                                                               | 2,404  |                                                                            | $      | 2,389 |   | $ | 826 |   | $ | 665 |   |
| Per                share amounts:                       |   |                                                                            |   |                                                                            |   |   |   |   |   |
| Earnings                per share - basic               |   | $                                                                               | 0.41   |                                                                            | $      | 0.41 |   | $ | 0.14 |   | $ | 0.11 |   |
| Earnings                per share - diluted             |   | 0.41                                                                            |   | 0.40                                                                            |   | 0.14 |   | 0.11 |   |

|                                                    |   | **Nine                months ended**** December                31, 2006** |   | **Nine                months ended**** December                31, 2005** |   |
|---------------------------------------------------------|--------|--------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------|--------|
|                                                    |   | **As****previously****reported**                                               |   | **As****restated**                                                             |   | **As****previously****reported** |   | **As****restated** |   |
|                                                    |   | ***(in thousands, except per share amounts)***        |
| **Consolidated                Statement of Operations** |   |                                                                           |   |                                                                           |   |   |   |   |   |
| Interest                expense                         |   | $                                                                              | 77     |                                                                           | $      | 135 |   | $ | 168 |   | $ | 186 |   |
| Income                before income taxes               |   | 2,799                                                                          |   | 2,741                                                                          |   | 1,093 |   | 1,075 |   |
| Income                tax expense                       |   | 784                                                                            |   | 763                                                                            |   | 219 |   | 376 |   |
| Net                income                               |   | $                                                                              | 2,015  |                                                                           | $      | 1,978 |   | $ | 874 |   | $ | 699 |   |
| Per                share amounts:                       |   |                                                                           |   |                                                                           |   |   |   |   |   |
| Earnings                per share - basic               |   | $                                                                              | 0.34   |                                                                           | $      | 0.34 |   | $ | 0.15 |   | $ | 0.12 |   |
| Earnings                per share - diluted             |   | 0.34                                                                           |   | 0.34                                                                           |   | 0.15 |   | 0.12 |   |

----

**TECHNOLOGY      RESEARCH CORPORATION**

**FORM      10-Q/A Amendment No. 1**

**TABLE      OF CONTENTS**

| PART                I —                FINANCIAL INFORMATION                                                                                                                                     |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                   |
|                                                                                                                                                                                                   | Item                1.                 Financial Statements |
|                                                                                                                                                                                                   |    Condensed                Consolidated Balance                Sheets |
|                                                                                                                                                                                                   |    Condensed                Consolidated Statements                of Operations |
|                                                                                                                                                                                                   |    Condensed                Consolidated Statements                of Cash Flows |
|                                                                                                                                                                                                   |    Notes                to the Condensed                Consolidated Financial Statements |
|                                                                                                                                                                                                   | Item                2.                 Management’s Discussion and Analysis of Financial Condition and                Results of Operations |
|                                                                                                                                                                                                   | Item                3.  Quantitative and Qualitative Disclosures About Market                Risk  |
|                                                                                                                                                                                                   | Item                4.                 Controls and Procedures |
|                                                                                                                                                                                                   |
| PART                II — OTHER                INFORMATION                                                                                                                                        |
|                                                                                                                                                                                                   |
|                                                                                                                                                                                                   | Item                1.                 Legal Proceedings |
|                                                                                                                                                                                                   | Item                1A.  Risk Factors  |
|                                                                                                                                                                                                   | Item                2.                 Unregistered Sales of Equity Securities and Use of                Proceeds |
|                                                                                                                                                                                                   | Item                3.                 Defaults Upon Senior Securities |
|                                                                                                                                                                                                   | Item                4.                 Submission of Matters to a Vote of Security                Holders |
|                                                                                                                                                                                                   | Item                5.                 Other Information |
|                                                                                                                                                                                                   | Item                6.                 Exhibits |
|                                                                                                                                                                                                   |   |
| SIGNATURES                                                                                                                                                                                        |
|                                                                                                                                                                                                   |
| Exhibit                31.1 —Certification                of Chief                Executive Officer pursuant to section 302 of the Sarbanes-Oxley Act                of                2002 |
|                                                                                                                                                                                                   |
| Exhibit                31.2 —Certification                of Chief                Financial Officer pursuant to section 302 of the Sarbanes-Oxley Act                of                2002 |
|                                                                                                                                                                                                   |
| Exhibit                32.1 —Certification                of Chief                Executive Officer pursuant to section 906 of the Sarbanes-Oxley Act                of                2002 |
|                                                                                                                                                                                                   |
| Exhibit                32.2 —Certification                of Chief                Financial Officer pursuant to section 906 of the Sarbanes-Oxley Act                of                2002 |
|                                                                                                                                                                                                   |

----

**PART      I — FINANCIAL INFORMATION**

**Item      1.  Financial      Statements**.

**TECHNOLOGY      RESEARCH CORPORATION AND SUBSIDIARY**

*(In      thousands, except share data)*

|                                                                                                                                                                          | **December 31,                2006** |   | **March 31,                2006** |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------|--------|----------------------------------------|
|              **ASSETS**                                                                                      | *(Restated)*                              |   | *(Restated)*                           |
| Current                assets:                                                                                                                                                |                                      |   |                                   |   |   |   |   |   |   |
|    Cash                and cash equivalents                                                                                                                    |                                      |   | $                                      | 1,423 |   |   |   | 2,607 |   |
|                   Short-term investments                                                                                                                            |                                      |   |                                   | 301 |   |   |   | 500 |   |
|    Trade                and other accounts receivable, net of allowance for doubtful accounts                of                $153 and $78, respectively |                                      |   |                                   | 7,737 |   |   |   | 10,730 |   |
|    Other                receivable - current portion                                                                                                           |                                      |   |                                   | 1,500 |   |   |   | - |   |
|    Inventories                                                                                                                                                 |                                      |   |                                   | 9,830 |   |   |   | 9,633 |   |
|                   Deferred income taxes                                                                                                                             |                                      |   |                                   | 712 |   |   |   | 455 |   |
|    Prepaid                expenses and other current assets                                                                                                    |                                      |   |                                   | 388 |   |   |   | 210 |   |
|      Total                current assets                                                                                                             |                                      |   |                                   | 21,891 |   |   |   | 24,135 |   |
|                                                                                                                                                                          |                                      |   |                                   |   |   |   |   |
| Property                and equipment, net of accumulated depreciation of $10,196 and $9,346,                respectively                                                |                                      |   |                                   | 4,611 |   |   |   | 4,939 |   |
| Other                receivable - less current portion                                                                                                                        |                                      |   |                                   | 1,700 |   |   |   | - |   |
| Intangible                assets, net of accumulated amortization of $43 and $0,                respectively                                                                  |                                      |   |                                   | 539 |   |   |   | - |   |
| Other                assets                                                                                                                                                   |                                      |   |                                   | 48 |   |   |   | 70 |   |
|                       Total assets                                                                                                              |                                      |   | $                                      | 28,789 |   |   |   | 29,144 |   |
|                                                                                                                                                                          |                                      |   |                                   |   |   |   |   |   |   |

| **LIABILITIES                AND STOCKHOLDERS' EQUITY**                                                                                                                                                                  |   |   |   |   |    |   |   |   |    |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|---------|--------|--------|--------|---------|
| Current                liabilities:                                                                                                                                                                                      |   |   |   |   |    |   |   |   |    |
|                   Current portion of long-term debt                                                                                                                                                       |   |   | $      | 1,000  |    |   |   | 1,000  |    |
|    Trade                accounts payable                                                                                                                                                                  |   |   |   | 4,125  |    |   |   | 4,850  |    |
|                   Accrued expenses                                                                                                                                                                             |   |   |   | 1,026  |    |   |   | 1,323  |    |
|    Accrued                dividends                                                                                                                                                                       |   |   |   | 133    |    |   |   | 101    |    |
|                   Income taxes payable                                                                                                                                                                         |   |   |   | 1,995  |    |   |   | 1,468  |    |
|      Total                current liabilities                                                                                                                                                   |   |   |   | 8,279  |    |   |   | 8,742  |    |
|                                                                                                                                                                                                                     |   |   |   |   |    |   |   |   |    |
| Long-term debt,                less current portion                                                                                                                                                                 |   |   |   | -      |    |   |   | 2,000  |    |
| Deferred                income taxes                                                                                                                                                                                     |   |   |   | 222    |    |   |   | 244    |    |
|                       Total liabilities                                                                                                                                                    |   |   |   | 8,501  |    |   |   | 10,986 |    |
|                                                                                                                                                                                                                     |   |   |   |   |    |   |   |
| Stockholders'                equity:                                                                                                                                                                                |   |   |   |   |    |   |   |
|                   Common stock $0.51 par value; 10,000,000 shares authorized, 5,910,328                shares and 5,848,649 shares issued and 5,888,828 shares and 5,827,149                shares outstanding |   |   |   | 3,014  |    |   |   | 2,983  |    |
|                   Additional paid-in capital                                                                                                                                                                   |   |   |   | 9,218  |    |   |   | 8,770  |    |
|                   Retained earnings                                                                                                                                                                            |   |   |   | 8,096  |    |   |   | 6,445  |    |
|                   Common stock held in treasury, 21,500 shares, at cost                                                                                                                                        |   |   |   | (40    | )  |   |   | (40    | )  |
|    Total                stockholders' equity                                                                                                                                                              |   |   |   | 20,288 |    |   |   | 18,158 |    |
|     Total                liabilities and stockholders' equity                                                                                                                                        |   |   | $      | 28,789 |    |   |   | 29,144 |    |
|                                                                                                                                                                                                                     |   |   |   |   |    |   |   |   |    |

**The      accompanying notes are an integral part of the condensed consolidated financial      statements.**

----

**TECHNOLOGY      RESEARCH CORPORATION AND SUBSIDIARY**

*(In      thousands, except share data)*

|                                                                                                     |                    | **Three                Months Ended** | **Nine                months ended**  |
|----------------------------------------------------------------------------------------------------------|-------------------------|---------------------------------------|---------------------------------------|
|                                                                                                     |                    | **December                31,**  | **December                31,**  |
|                                                                                                     |                    |                                  | **2006**                              |   |   | **2005** |   |   | **2006** |   |   | **2005** |   |
|                                                                                                     |                    |                                  | *(Restated)*                          |   |   | *(Restated)* |   |   | *(Restated)* |   |   | *(Restated)* |   |
| Revenues:                                                                                                |                    |                                  |                                  |   |   |   |   |   |   |   |   |   |   |
|                   Commercial                                                                   | $                       |                                  | 5,844                                 |   |   | 7,858 |   |   | 21,026 |   |   | 21,324 |   |
|    Military                                                                               |                    |                                  | 2,974                                 |   |   | 3,496 |   |   | 8,113 |   |   | 9,269 |   |
|       Total                revenues                                        |                    | 8,818                                 |                                  | 11,354 |   | 29,139 |   | 30,593 |   |
| Cost                of sales                                                                   |                    |                                  | 6,455                                 |   |   | 8,502 |   |   | 22,380 |   |   | 23,668 |   |
|                         Gross profit                        |                    | 2,363                                 |                                  | 2,852 |   | 6,759 |   | 6,925 |   |
|                                                                                                     |                    |                                  |                                  |   |   |   |   |   |   |
| Operating                expenses:                                                                       |                    |                                  |                                  |   |   |   |   |   |   |   |   |   |   |
|                   Selling and marketing                                                        |                    |                                  | 671                                   |   |   | 644 |   |   | 2,116 |   |   | 1,851 |   |
|                   General and administrative                                                   |                    |                                  | 1,190                                 |   |   | 707 |   |   | 3,469 |   |   | 2,393 |   |
|    Research                and development                                                |                    |                                  | 492                                   |   |   | 419 |   |   | 1,521 |   |   | 1,444 |   |
|                      Total operating expenses                              |                    | 2,353                                 |                                  | 1,770 |   | 7,106 |   | 5,688 |   |
|                          Income (loss) from operations |                    | 10                                    |                                  | 1,082 |   | (347 | )  | 1,237 |   |
| Other                income (expense):                                                                   |                    |                                  |                                  |   |   |   |   |   |   |
|                   Other income, net                                                            |                    |                                  | 3,208                                 |   |   | 4 |   |   | 3,223 |   |   | 24 |   |
|                   Interest expense                                                             |                    |                                  | (42                                   | ) |   | (63 | )  |   | (135 | )  |   | (186 | )  |
|                          Other income (expense), net   |                    | 3,166                                 |                                  | (59 | )  | 3,088 |   | (162 | )  |
| Income                before income taxes                                                           |                    | 3,176                                 |                                  | 1,023 |   | 2,741 |   | 1,075 |   |
| Income                tax expense                                                                        |                    |                                  | 787                                   |   |   | 358 |   |   | 763 |   |   | 376 |   |
|                   Net income                                                         |                  $ | 2,389                                 |                                  | 665 |   | 1,978 |   | 699 |   |
|                                                                                                     |                    |                                  |                                  |   |   |   |   |   |   |
| Earnings                per share - basic                                                                | $                       |                                  | 0.41                                  |   |   | 0.11 |   |   | 0.34 |   |   | 0.12 |   |
|                                                                                                     |                    |                                  |                                  |   |   |   |   |   |   |   |   |   |   |
| Earnings                per share - diluted                                                              | $                       |                                  | 0.40                                  |   |   | 0.11 |   |   | 0.34 |   |   | 0.12 |   |
|                                                                                                     |                    |                                  |                                  |   |   |   |   |   |   |   |   |   |   |
| Shares                outstanding - basic                                                                |                    |                                  | 5,888,828                             |   |   | 5,783,500 |   |   | 5,882,660 |   |   | 5,778,325 |   |
|                                                                                                     |                    |                                  |                                  |   |   |   |   |   |   |   |   |   |   |
| Shares                outstanding - diluted                                                              |                    |                                  | 5,908,462                             |   |   | 5,811,161 |   |   | 5,904,499 |   |   | 5,828,818 |   |
|                                                                                                     |                    |                                  |                                  |   |   |   |   |   |   |   |   |   |   |
| Dividends                declared per share                                                         | $                       |                                  | .020                                  |   |   | .015 |   |   | .055 |   |   | .045 |   |

**The      accompanying notes are an integral part of the condensed consolidated financial      statements.**

----

**TECHNOLOGY      RESEARCH CORPORATION AND SUBSIDIARY**

*(In      thousands)*

|                                                                                                                                                                        | **Nine                months ended ** |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------|
|                                                                                                                                                                        | **December                31,**            |
|                                                                                                                                                                        |                                       |   |   | **2006** |   |   |   | **2005** |   |
|                                                                                                                                                                        |                                       |   |   | *(Restated)* |   |   |   | *(Restated)* |   |
| Cash                flows from operating activities:                                                                                                                        |                                       |   |   |   |   |   |   |   |   |
|    Net                income                                                                                                                                 |                                       |   | $ | 1,978 |   |   |   | 699 |   |
|                   Adjustments to reconcile net income                                                                                                             |                                       |
|                      to net cash provided by operating                activities:                     |                                       |
|                   Tax benefit of stock option exercised                                                                                                           |                                       |   |   | - |   |   |   | 8 |   |
|    Accretion                of interest on short-term investments                                                                                       |                                       |   |   | (14 | )  |   |   | (5 | )  |
|    Change                in allowance for doubtful accounts                                                                                                  |                                       |   |   | 75 |   |   |   | - |   |
|    Depreciation                                                                                                                                              |                                       |   |   | 850 |   |   |   | 932 |   |
|    In-process                research and development                                                                                                        |                                       |   |   | 17 |   |   |   | - |   |
|    Amortization                of intangible assets                                                                                                          |                                       |   |   | 43 |   |   |   | - |   |
|                   Stock compensation expense                                                                                                                      |                                       |   |   | 75 |   |   |   | 38 |   |
|                   Deferred income taxes                                                                                                                           |                                       |   |   | (279 | )  |   |   | (326 | )  |
|    Changes                in operating assets and liabilities, net of effects of                acquisition:         |                                       |   |
|       Trade                and other accounts receivable                                                                                      |                                       |   |   | 2,918 |   |   |   | 4,101 |   |
|       Other                receivable - current portion                                                                                  |                                       |   |   | (1,500 | )  |   |   | - |   |
|                      Inventories                                                                                                                   |                                       |   |   | (118 | )  |   |   | 329 |   |
|                      Prepaid expenses and other current assets                                                                                     |                                       |   |   | (178 | )  |   |   | 197 |   |
|                      Other assets                                                                                                                  |                                       |   |   | (1,678 | )  |   |   | 31 |   |
|       Trade                accounts payable                                                                                                   |                                       |   |   | (725 | ) |   |   | (2,483 | )  |
|       Accrued                expenses                                                                                                         |                                       |   |   | (297 | ) |   |   | (404 | )  |
|       Income                taxes payable                                                                                                     |                                       |   |   | 527 |   |   |   | 474 |   |
|         Net                cash provided by operating activities                                                                    |                                       |   |   | 1,694 |   |   |   | 3,591 |   |
| Cash                flows from investing activities:                                                                                                                        |                                       |   |   |   |   |   |   |   |   |
|    Maturities of short-term                investments                                                                                             |                                       |   |   | 1,009 |   |   |   | 486 |   |
|    Purchase                of short-term investments                                                                                                         |                                       |   |   | (796 | )  |   |   | (492 | )  |
|    Acquisition                of business                                                                                                                    |                                       |   |   | (331 | )  |   |   | - |   |
|    Purchases                of property and equipment                                                                                                   |                                       |   |   | (522 | )  |   |   | (596 | )  |
|         Net                cash used in investing activities                                                                   |                                       |   |   | (640 | )  |   |   | (602 | )  |
| Cash                flows from financing activities:                                                                                                                   |                                       |   |   |   |   |   |   |   |   |
|    Borrowings                of short-term debt                                                                                                              |                                       |   |   | - |   |   |   | 10 |   |
|                   Repayments of short-term and long-term debt                                                                                                     |                                       |   |   | (2,000 | )  |   |   | (2,360 | )  |
|    Proceeds                from the exercise of stock options                                                                                                |                                       |   |   | 52 |   |   |   | 22 |   |
|                   Tax benefit of stock option exercised                                                                                                           |                                       |   |   | 5 |   |   |   | - |   |
|    Cash                dividends paid                                                                                                                        |                                       |   |   | (295 | )  |   |   | (260 | )  |
|         Net                cash used in financing activities                                                              |                                       |   |   | (2,238 | )  |   |   | (2,588 | )  |
| Net                increase (decrease) in cash and cash equivalents                                                                                                    |                                       |   |   | (1,184 | )  |   |   | 401 |   |
| Cash                and cash equivalents at beginning of period                                                                                                             |                                       |   |   | 2,607 |   |   |   | 816 |   |
| Cash                and cash equivalents at end of period                                                                                                              |                                       |   | $ | 1,423 |   |   |   | 1,217 |   |
| Non-cash                investing in financing activities:                                                                                                             |                                       |   |   |   |   |   |   |   |   |
|                   Common stock issued upon acquisition of recreational vehicle product                line                business                                |                                       |   |  $ | 347 |   |   |   |   |   |

**The      accompanying notes are an integral part of the condensed consolidated financial      statements.**

----

**TECHNOLOGY      RESEARCH CORPORATION AND SUBSIDIARY**

**Notes      to the Condensed Consolidated Financial Statements**

*(In      thousands, except share data)*

*1.  Restatement*

***Overview***

|   | ·                                 An increase in current income tax expense and current income tax                payable                on deemed dividends from foreign operations triggered by borrowings                under                a joint credit facility with our wholly-owned foreign                subsidiary, |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ·                 An                increase in deferred income tax expense and deferred income tax liability                due to inability to assert the indefinite reversal criteria of APB                23                until the fourth quarter of fiscal 2006 on earnings from foreign                operations |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ·                                 An increase in interest expense and interest payable due on the additional                income taxes and related income tax                effects. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

*Accounting for Uncertainty in      Income Taxes*

*Accounting for Income Taxes.*

***Effects      of Restatement***

|                                                            |   | **December                31, 2006** |   | **March                31, 2006** |   |
|-----------------------------------------------------------------|--------|--------------------------------------|--------|-----------------------------------|--------|
|                                                            |   | **As****previously****reported**     |   | **As****restated**                |   | **As****previously****reported** |   | **As****restated** |   |
|                                                            |   | ***(in thousands)***            |   |
| **Consolidated                Balance Sheets**                  |   |                                 |   |                              |   |   |   |   |   |
| Deferred                income taxes                            |   | $                                    | 681    |                              | $      | 712 |   | $ | 445 |   | $ | 455 |   |
| Total                current assets                             |   | 21,860                               |   | 21,891                            |   | 24,125 |   | 24,135 |   |
| Total                assets                                     |   | 28,758                               |   | 28,789                            |   | 29,134 |   | 29,144 |   |
|                                                            |   |                                 |   |                              |   |   |   |   |   |
| Accrued                expenses                                 |   | 941                                  |   | 1,026                             |   | 1,296 |   | 1,323 |   |
| Income                taxes payable                             |   | 884                                  |   | 1,995                             |   | 357 |   | 1,468 |   |
| Total                current liabilities                        |   | 7,083                                |   | 8,279                             |   | 7,604 |   | 8,742 |   |
|                                                            |   |                                 |   |                              |   |   |   |   |   |
| Total                liabilities                                |   | 7,305                                |   | 8,501                             |   | 9,848 |   | 10,986 |   |
|                                                            |   |                                 |   |                              |   |   |   |   |   |
| Retained                earnings                                |   | 9,261                                |   | 8,096                             |   | 7,573 |   | 6,445 |   |
| Total                stockholders’ equity                 |   | 21,453                               |   | 20,288                            |   | 19,286 |   | 18,158 |   |
|                                                            |   |                                 |   |                              |   |   |   |   |   |
| Total                liabilities and stockholders’ equity |   | $                                    | 28,758 |                              | $      | 28,789 |   | $ | 29,134 |   | $ | 29,144 |   |

|                                                    |   | **Three                months ended**** December                31, 2006** |   | **Three                months ended**** December                31, 2005** |   |
|---------------------------------------------------------|--------|---------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------|--------|
|                                                    |   | **As****previously****reported**                                                |   | **As****restated**                                                              |   | **As****previously****reported** |   | **As****restated** |   |
|                                                    |   | ***(in thousands, except per share amounts)***         |
| **Consolidated                Statement of Operations** |   |                                                                            |   |                                                                            |   |   |   |   |   |
| Interest                expense                         |   | $                                                                               | 18     |                                                                            | $      | 42 |   | $ | 54 |   | $ | 63 |   |
| Income                before income taxes               |   | 3,200                                                                           |   | 3,176                                                                           |   | 1,032 |   | 1,023 |   |
| Income                tax expense                       |   | 796                                                                             |   | 787                                                                             |   | 206 |   | 358 |   |
| Net                income                               |   | $                                                                               | 2,404  |                                                                            | $      | 2,389 |   | $ | 826 |   | $ | 665 |   |
| Per                share amounts:                       |   |                                                                            |   |                                                                            |   |   |   |   |   |
| Earnings                per share - basic               |   | $                                                                               | 0.41   |                                                                            | $      | 0.41 |   | $ | 0.14 |   | $ | 0.11 |   |
| Earnings                per share - diluted             |   | 0.41                                                                            |   | 0.40                                                                            |   | 0.14 |   | 0.11 |   |

|                                                    |   | **Nine                months ended**** December                31, 2006** |   | **Nine                months ended**** December                31, 2005** |   |
|---------------------------------------------------------|--------|--------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------|--------|
|                                                    |   | **As****previously****reported**                                               |   | **As****restated**                                                             |   | **As****previously****reported** |   | **As****restated** |   |
|                                                    |   | ***(in thousands, except per share amounts)***        |
| **Consolidated                Statement of Operations** |   |                                                                           |   |                                                                           |   |   |   |   |   |
| Interest                expense                         |   | $                                                                              | 77     |                                                                           | $      | 135 |   | $ | 168 |   | $ | 186 |   |
| Income                before income taxes               |   | 2,799                                                                          |   | 2,741                                                                          |   | 1,093 |   | 1,075 |   |
| Income                tax expense                       |   | 784                                                                            |   | 763                                                                            |   | 219 |   | 376 |   |
| Net                income                               |   | $                                                                              | 2,015  |                                                                           | $      | 1,978 |   | $ | 874 |   | $ | 699 |   |
| Per                share amounts:                       |   |                                                                           |   |                                                                           |   |   |   |   |   |
| Earnings                per share - basic               |   | $                                                                              | 0.34   |                                                                           | $      | 0.34 |   | $ | 0.15 |   | $ | 0.12 |   |
| Earnings                per share - diluted             |   | 0.34                                                                           |   | 0.34                                                                           |   | 0.15 |   | 0.12 |   |

*2.       Basis of Presentation: *

**SEC**

**Company**

*3.  Earnings      Per Share:*

|                                                                          | **Three                months ended** | **Nine                months ended**  |
|-------------------------------------------------------------------------------|---------------------------------------|---------------------------------------|
|                                                                          | ** December                31,** | ** December                31,** |
|                                                                          |                                  |                                  |   | **2006** |   |   | **2005** |   |   | **2006** |   |   | **2005** |   |
|                                                                          |                                  |                                  |   | *(Restated)* |   |   | *(Restated)* |   |   | *(Restated)* |   |   | *(Restated)* |   |
| Net                income                                                     |                                  |                                  | $ | 2,389 |   |   | 665 |   |   | 1,978 |   |   | 699 |   |
|                                                                          |                                  |                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted                average shares outstanding - basic                    |                                  |                                  |   | 5,888,828 |   |   | 5,783,500 |   |   | 5,882,660 |   |   | 5,778,325 |   |
| Dilutive                common shares issuable upon exercise of stock options |                                  |                                  |   | 19,634 |   |   | 27,661 |   |   | 21,839 |   |   | 50,493 |   |
| Weighted                average shares outstanding - diluted                  |                                  |                                  |   | 5,908,462 |   |   | 5,811,161 |   |   | 5,904,499 |   |   | 5,828,818 |   |
|                                                                          |                                  |                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings                per share:                                            |                                  |                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                                         |                                  |                                  | $ | 0.41 |   |   | 0.11 |   |   | 0.34 |   |   | 0.12 |   |
| Diluted                                                                       |                                  |                                  | $ | 0.40 |   |   | 0.11 |   |   | 0.34 |   |   | 0.12 |   |

*4.       Short-term Investments: *

*held-to-maturity*

*5.       Inventories:*

|  **September                30, 2006** | ** ** | **March                31, 2006** |
|---------------------------------------------|------------|-----------------------------------|
|                                        |       |                              |   |
| Raw              materials                  |       |                              | $ | 7,067 |   |   |   | 6,618 |   |
| Work-in-process                             |       |                              |   | 499 |   |   |   | 449 |   |
| Finished              goods                 |       |                              |   | 2,264 |   |   |   | 2,566 |   |
|                                        |       |                              |   |
| Total                                       |       |                              | $ | 9,830 |   |   |   | 9,633 |   |
|                                        |            |                              |  |

*6.      Warranty: *

|                                                         |    | **Three                months ended** | **Nine                months ended**        |
|--------------------------------------------------------------|---------|---------------------------------------|---------------------------------------------|
|                                                         |    | **December                31,**  |  **December                31,**  |
|                                                         |    |                                  |                                        |   |   |   |   |   |   |
|                                                         |    |  **2006**                        |                                        |  **2005** |   |  **2006** |   |  **2005** |   |
| Beginning                balance                             |  $ | 132                                   |                                        | 270 |   | 111 |   | 310 |   |
|                    Warranty expense (benefit) |    | (25                                   | )                                      | 80 |   | 56 |   | 403 |   |
|                    Warranty claims            |    |  (15                             | )                                      |  (213 | )  | (75 | )  |  (576 | )  |
| Ending                balance                                |  $ | 92                                    |                                        | 137 |   | 92 |   | 137 |   |
|                                                         |    |                                  |                                        |   |   |   |   |   |   |

*7.  Debt: *

**LIBOR**

*8.       Stockholders' Equity*

|                                                                                                         |   |   |                            |          | **Additional** |   |                                            |   |                                            |   | **Total**               |   |
|--------------------------------------------------------------------------------------------------------------|--------|--------|---------------------------------|---------------|----------------|--------|-------------------------------------------------|--------|-------------------------------------------------|--------|-------------------------|--------|
|                                                                                                         |   |   | **Common                stock** |          | **paid-in**    |   |  **Retained**                              |   |  **Treasury**                              |   | **stockholders'**       |   |
|                                                                                                         |   |   | **Shares**                      |          | **Amount**     |   | **capital**                                     |   | **earnings**                                    |   | **stock**               |   | **equity** |   |
| Balances                as of March 31, 2006 *(restated)*:                                              |   |   | 5,827,149                       |  $       |  2,983    |   |  8,770                                     |   | 6,445                                           |   | (40)                    |   | 18,158 |   |
|                                                                                                         |   |   |                            |          |           |   |                                            |   |                                            |   |                    |   |   |   |
|                   Dividends - $0.055 per share                                                     |   |   |  -                         |          | -              |   |                      - |   |                   (327)               |   |   -           |   |     (327) |   |
|                   Net income *(restated)*                                                          |   |   |  -                         |          |  -        |   |                      - |   | 1,978                                           |   |                  - |   |  1,978 |   |
|                   Shares issued upon acquisition (note 9)                                          |   |   | 51,679                          |          | 26             |   |                   321                 |   |                      -      |   |   -           |   |                    347 |   |
|                   Stock compensation expense                                                       |   |   | -                               |          | -              |   |                    75            |   |                      - |   |                  - |   |                     75 |   |
|                   Exercise of stock options                                                        |   |   | 10,000                          |          | 5              |   |                    47            |   |                      - |   |                  - |   |      52 |   |
|                   Tax benefit of stock option exercise                                             |   |   |  -                         |          |  -        |   |                      5 |   |       -           |   |                  - |   |                       5 |   |
|                       Balances as of December 31, 2006 *(restated)*: |   |   | 5,888,828                       |   $ | 3,014          |   | 9,218                                           |   | 8,096                                           |   | (40)                    |   | 20,288 |   |
|                                                                                                         |   |   |                            |          |           |   |                                            |   |                                            |   |                    |   |   |   |

*9.       Stock-Based Compensation: *

*Share-Based Payment, *
**SFAS 123R**
*Accounting for Stock issued to Employees *
**APB 25**
*Accounting for Stock-Based      Compensation *
**SFAS 123**
*Accounting for Stock-Based      Compensation-Transition and Disclosure.*

|                                                                                                                                                                                                                                                        |  **Three                months                ended** |  **Nine                months ended** |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------|--------------------------------------------|
|                                                                                                                                                                                                                                                        |   **December                31, 2005**           |  **December                31, 2005** |
|                                                                                                                                                                                                                                                        |                                                       |                                       | *(Restated)* |   |   |   | *(Restated)* |   |
| Net                income - as reported                                                                                                                                                                                                                     |                                                       |  $                                    | 665 |   |   |   | 699 |   |
| Add:                 Total stock-based employee compensation expense included in the                determination of reported net income, net of related income taxes                of $0                and $8, respectively.                        |                                                       |                                       | - |   |   |   | 31 |   |
| Deduct:                 Total stock-based employee compensation expense determined under                fair                value based method for all awards, net of related income taxes of                $0 and                $336, respectively. |                                                       |                                       | - |   |   |   | (1,345 | )  |
| Net                income (loss) - pro forma                                                                                                                                                                                                                |                                                       |  $                                    | 665 |   |   |   |  (615 | )  |
| Basic earnings                (loss) per share:                                                                                                                                                                                                   |                                                       |                                       |   |   |   |   |   |   |
|          As                reported                                                                                                                                                                            |                                                       |  $                                    | 0.12 |   |   |   |  0.12 |   |
|                                                                                                                                                                                                                                                        |                                                       |                                       |   |   |   |   |   |   |
|                          Pro forma                                                                                                                                                                        |                                                       |  $                                    | 0.12 |   |   |   |  (0.11 | )  |
| Diluted earnings                (loss) per share:                                                                                                                                                                                                 |                                                       |                                       |   |   |   |   |   |   |
|                          As reported                                                                                                                                                                           |                                                       |  $                                    | 0.11 |   |   |   |  0.12 |   |
|                                                                                                                                                                                                                                                        |                                                       |                                       |   |   |   |   |   |   |
|                          Pro forma                                                                                                                                                                             |                                                       |  $                                    | 0.11 |   |   |   |  (0.11 | )  |
|                                                                                                                                                                                                                                                        |                                                       |                                       |   |   |   |   |   |   |

*Stock      Option Plans*

**Plans**

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                                              |   |                                                                    |   | **Aggregate**(1)                     |   | **Weighted**                                |   | **Weighted**                                       |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------|--------|-------------------------------------------------------------------------|--------|--------------------------------------|--------|--------------------------------------------------|--------|----------------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | **Shares**                                                        |   |                                                                    |   | **intrinsic**                        |   | **average**                                      |   | **average**                                        |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | ** available**                                               |   | **Options**                                                             |   | **value**                            |   | **exercise**                                     |   | **remaining**                                      |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | ** for                grant**                                |   | **outstanding**                                                         |   | **(in                thousands)**    |   | **price**                                        |   | **contractual                life**                |   |
| Balance as                of March 31, 2006                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | 603,850                                                           |   |  540,911                                                           |   | $                745                 |   | $                7.86                            |   | 5.05                                               |   |
|                   Options authorized                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                         - |   |                          - |   |                            |   |                       - |   |                                     |   |
|                   Options expired                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | (150,000)                                                         |   | (210,976)                                                               |   |                            |   | $                5.13                            |   |     0                          |   |
|                   Options granted                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   (10,000)                                              |   |   10,000                                                      |   |             |   | $                6.04                            |   |                   9.35    |   |
|                   Options canceled                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |          -           |   |                  (25,000)                                          |   |                            |   | $                9.47                            |   |                    0                |   |
|                   Options exercised                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                         - |   |                  (10,000)                                          |   |        |   | $                5.17                            |   |                    0                |   |
| Balance                as of December 31, 2006                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | 443,850                                                           |   |  304,935                                                           |   | $                  82      |   | $                9.64                            |   | 7.38                                               |   |
| Exercisable as                of December 31, 2006                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                                                              |   |  264,935                                                           |   | $                  82      |   | $10.04                                           |   | 7.10                                               |   |
| _______________________________                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                                                              |   |                                                                    |   |                                 |   |                                             |   |                                               |   |
| Footnote:1 The                aggregate intrinsic value represents the total pretax intrinsic value,                based on the Company’s closing stock price of $7.27 as of March 31, 2006                and of $4.17 as of December 29, 2006 and on the dates options                were granted or exercised, which would have been received by the                option holders had all option holders exercised their options as of                that date, including only those options that are                in-the-money. |

|                                         |   | **Three                months ended** |   | **Nine                months ended** |   |
|----------------------------------------------|--------|---------------------------------------|--------|--------------------------------------|--------|
|                                         |   | **December                31,**       |   | **December                31,**      |   |
|                                         |   |  **2006**                        |   |  **2005**                       |   |  **2006** |   |  **2005** |   |
|                                         |   |                                  |   |                                 |   |   |   |   |   |
| Expected                dividend yield  |   |  N/A                             |   |  N/A                            |   |    1.12% |   |  N/A |   |
| Risk                free interest rate  |   |  N/A                             |   |  N/A                            |   |                   5.05% |   |  N/A |   |
| Expected                volatility      |   |  N/A                             |   |  N/A                            |   |  88.29% |   |  N/A |   |
| Expected                life            |   |  N/A                             |   |  N/A                            |   |  6.48                years |   |  N/A |   |

*10.       Acquisition*

**AEC**

| Cash                paid to seller                          | $279                           |
|-------------------------------------------------------------|--------------------------------|
| Cash                paid for acquisition costs              |                   52 |
| Common                stock issued to seller, 51,679 shares |  347                      |
|                    Total                     | $678                           |
|                                                        |                           |

|                                                                                                                                          |          |                          |  Estimated                useful lives |
|-----------------------------------------------------------------------------------------------------------------------------------------------|---------------|-------------------------------|---------------------------------------------|
| Inventories                                                                                                                              |  $       |    79          | N/A                                         |
| Intangible                assets:                                                                                                        |          |                          |                                        |
|                   Developed technology                                                                                              |          |  417                     | 10                years                     |
|                   Patents                                                                                                           |          |                  84      | 10 years                               |
|                   Purchased customer relationships                                                                                  |          |                  67      |                  9 years          |
|                   Trademarks                                                                                                        |          |                   6 |  1                year                 |
|                   Covenant not-to-compete                                                                                           |          |                   8 |   5                years          |
| In-process                research and development                                                                                            |          |  17                      | *                                           |
|                        Total                                                                               |   $ | 678                           |                                        |
|                                                                                                                                          |          |                          |                                        |
| *                 Written-off during the first quarter of fiscal 2007 and reported                in research and development. |

|                                            |    | **Three                months ended December 31,** |         | **Nine                months ended December 31,** |         |
|-------------------------------------------------|---------|----------------------------------------------------|--------------|---------------------------------------------------|--------------|
|                                            |    |                                               | **2006**     |                                              | **2005**     |   |   |   | **2006** |   | **2005** |   |   |
|                                            |    |                                               | *(Restated)* |                                              | *(Restated)* |   |   |   | *(Restated)* |   | *(Restated)* |   |   |
| Revenues                                   |  $ |                                               |  8,818  |                                              |  11,445 |   |   |   |  29,139 |   |  30,915 |   |   |
| Net                income                       |  $ |                                               | 2,389        |                                              |  669    |   |   |   |  1,978 |   | 713 |   |   |
| Diluted                earnings per share  |  $ |                                               |  0.40   |                                              |  0.11   |   |   |   |  0.34 |   |  0.12 |   |   |

*11.       Litigation*

*Fire Shield*
*Fire Shield*

*Fire Shield*

**.  **

**Tower**

*12.       New Accounting Standards*

**FASB**
*Inventory Costs*
*Restatement and Revision of Accounting Research Bulletins*

*Accounting for Stock-Based      Compensation*
*Accounting for Stock issued to      Employees*

*Accounting Changes and Error      Corrections*
*Accounting Changes*
*Reporting Accounting      Changes in Interim Financial Statements*

*Accounting for Certain Hybrid Financial      Instruments—an amendment of FASB Statements No. 133 and 140*
*Accounting for Derivative      Instruments and Hedging Activities*
*Accounting for      Transfers and Servicing of Financial Assets and Extinguishments of      Liabilities*
*Application of Statement 133 to Beneficial      Interests in Securitized Financial Assets*

*Considering the Effects of Prior Year Misstatements when Quantifying      Misstatements in Current Year Financial Statements *

**EITF**
**EITF No. 06-03**

**Item      2.  Management’s Discussion and Analysis of Financial      Condition and Results of Operations.**

**we**
**our**
**us**
**Company**
**TRC**

***DISCLOSURE      REGARDING FORWARD-LOOKING STATEMENTS***

**SEC**

***OVERVIEW***

*Fire Shield*
*Surge Guard Plus*
**UL**
**RAC**
*Fire      Shield*
**LCDI**

*Fire Shield*

*Risk      Factors*

***RESULTS OF      OPERATIONS***

**    R**
***evenues***

***    Gross      profit***

***    Selling      and      marketing***

***    General      and      administrative***

***    Research      and      development***

***    Other income      (expense)***

***    Income      tax      expense***

***    Net income***

***LIQUIDITY AND      CAPITAL RESOURCES***

**LIBOR**

***OFF-BALANCE      SHEET ARRANGEMENTS***

***NEW      ACCOUNTING STANDARDS***

**FASB**
*Inventory Costs*
*Restatement and Revision of Accounting Research Bulletins*

*Accounting for Stock-Based      Compensation*
*Accounting for Stock issued to      Employees*

*Accounting Changes and Error      Corrections*
*Accounting Changes*
*Reporting Accounting      Changes in Interim Financial Statements*

*Accounting for Certain Hybrid Financial      Instruments—an amendment of FASB Statements No. 133 and 140*
*Accounting for Derivative      Instruments and Hedging Activities*
*Accounting for      Transfers and Servicing of Financial Assets and Extinguishments of      Liabilities*
*Application of Statement 133 to Beneficial      Interests in Securitized Financial Assets*

*Considering the Effects of Prior Year Misstatements when Quantifying      Misstatements in Current Year Financial Statements *

**EITF**
**EITF No. 06-03**

***CRITICAL      ACCOUNTING POLICIES***

*Disclosure Regarding Forward-Looking Statements*
*Risk Factors*

***    Revenue      Recognition/Allowance for Doubtful Accounts.***

***    Inventories.***

***    Income      Taxes***
**.**

***    Warranty***
**.**

***    Impairment      of      Long-Lived Assets.***
*Accounting for Impairment or Disposal of Long-Lived Assets*

**Item      3.  Quantitative and Qualitative Disclosures About Market      Risk.**

**Item      4.  Controls and Procedures.**

*Disclosure      Controls and Procedures*

**Certifying Officers**

*Changes      in Internal Control over Financial Reporting*

*Accounting for Uncertainty in Income Taxes*

**PART      II — OTHER INFORMATION**

**Item      1.  Legal Proceedings.**

*Fire Shield*
*Fire Shield*

*Fire      Shield*

**.  **

**Tower**

**Item      1A.  Risk Factors.**

**Item      2.  Unregistered Sales of Equity Securities and Use of      Proceeds.**

**Item      3.  Defaults Upon Senior      Securities.**

**Item      4.  Submission of Matters to a Vote of Security      Holders.**

**Item      5.  Other information.**

**Item      6.  Exhibits.**

|                                                                                                                                                                                                                                                                                                                                                                                                                       | Exhibit                10.1 — Settlement Agreement, dated December 29, 2006, by and between                Technology Research Corporation and                                       Tower Manufacturing Corporation.(1)(2) |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                                                                                                                                                 |
|                                                                                                                                                                                                                                                                                                                                                                                                                       | Exhibit                31.1 — Certification of the CEO pursuant to Rule 13a-14(a) or Rule                15(d)-14(a).                                                                                                                                                                                                                          |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                       |
|                                                                                                                                                                                                                                                                                                                                                                                                                       | Exhibit                31.2 — Certification of the CFO pursuant to Rule 13a-14(a) or Rule                15(d)-14(a).                                                                                                                                                                                                                          |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                       |
|                                                                                                                                                                                                                                                                                                                                                                                                                       | Exhibit                32.1 — Certification pursuant to 18 U.S.C. §1350 as adopted pursuant to                Section 906 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                         |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                       |
|                                                                                                                                                                                                                                                                                                                                                                                                                       | Exhibit                32.2 — Certification pursuant to 18 U.S.C. §1350 as adopted pursuant to                Section 906 of the Sarbanes-Oxley Act of 2002.                                                                                                                                                                         |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                                                                                                                                                 |
| Footnotes:1 Filed                herewith.2 Pursuant                to Rule 24b-2 of the                Securities Exchange Act of 1934, as amended, confidential portions                of this                exhibit have been deleted and filed separately with the Securities                and                Exchange Commission pursuant to a request for confidential                treatment.  |                                                                                                                                                                                                                                                                                                                                                 |

**SIGNATURES**

|                               | TECHNOLOGY                RESEARCH CORPORATION                                                                                                                                                                                                                                                                                 |
|------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                               |                                                                                                                                                                                                                                                                                                                           |
| June                19, 2007  | By:                      /s/ Owen Farren                                                                                    |
|                               |              Owen                Farren                                                                                                                                                                                                                       |
|                               |                             President and Chief Executive Officer                                                                                                                                                                                                  |
|                               |                             (Principal Executive Officer)                                                                                                                                                                                                          |
|                               |
|                               |
| June                19, 2007  | By:                      /s/ Barry                H. Black                                                   |
|                               |              Barry                H. Black                                                                                                                                                                                                                    |
|                               |                             Chief Financial Officer                                                                                                                                                                                                                |
|                               |                             (Principal Financial and Accounting                Officer)                                                                                                                                                                            |

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