U. S. Securities and Exchange Commission
                             Washington, D. C. 20549
                                   Form 10-KSB
                             Dated February 11, 2008


(Mark One)

(X)  ANNUAL REPORT UNDER SECTION 13 OR 15 (d) OF THE SECURITIES  EXCHANGE ACT OF
     1934 (Fee Required)

                   For the fiscal year ended November 30, 2007


( )  TRANSITION REPORT UNDER SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT
     OF 1934 (No Fee Required)

               For the transition period from ________ to ________
                          Commission file number 0-5109

                            MICROPAC INDUSTRIES, INC.

          DELAWARE                                        75-1225149
          --------                                        ----------
(State or other jurisdiction of                        (I.R.S. Employer
incorporation or organization)                        Identification No.)

905 E. WALNUT STREET                                         75040
GARLAND, TEXAS                                            (Zip Code)

                    Issuer's telephone number (972) 272-3571

          Securities to be registered under Section 12 (b) of the Act:

     Title of each class             Name of each exchange on which registered

     __________________              ____________________________________
     __________________              ____________________________________


          Securities to be registered under Section 12 (g) of the Act:

                           COMMON STOCK $.10 par value
                           ---------------------------

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

Check if there is no  disclosure of  delinquent  filers  pursuant to Item 405 of
Regulation S-K contained in this form, and no disclosure  will be contained,  to
the best of  registrant's  knowledge,  in any  definitive  proxy or  information
statements  incorporated  by  reference  in Part III of this Form  10-KSB or any
amendment to this Form 10-KSB. []

Revenues for its most recent fiscal year:  $18,524,000

On November 30, 2007, the aggregate market value of the voting common stock held
by  non-affiliates of the registrant (based on the closing price reported on the
Over-the-Counter  ("OTC")  Bulletin  Board  system  on  November  30,  2007  was
approximately  $4,380,000.  For  purposes of such  calculation  shares of Common
Stock held by each  executive  officer and  director and by each person who owns
more than 5% of the  outstanding  Common  Stock has been  excluded  in that such
persons may be deemed to be affiliates.  This  determination of affiliate status
is not necessarily a conclusive determination for other purposes.

                   (APPLICABLE ONLY TO CORPORATE REGISTRANTS)

The number of shares outstanding of the issuer's only class of common equity, as
of the latest practicable date was 2,578,315 as of November 30, 2007.


                       DOCUMENTS INCORPORATED BY REFERENCE

Portions of the Registrant's  definitive Proxy Statement dated February 11, 2008
for the Annual Meeting of  Shareholders  to be held on March 7, 2008 (the "Proxy
Statement") are incorporated by reference into Part III of this Form 10-KSB.


<PAGE>

                                     PART I

Item 1. Description of Business
-------------------------------


INTRODUCTION
------------

Micropac Industries, Inc. (the "Company"), a Delaware corporation,  manufactures
and distributes various types of hybrid  microelectronic  circuits,  solid state
relays,  power  operational  amplifiers,   and  optoelectronic   components  and
assemblies.  The  Company's  products are used as components in a broad range of
military,  space and industrial systems,  including aircraft instrumentation and
navigation systems,  power supplies,  electronic  controls,  computers,  medical
devices, and high-temperature (200o C) products.

The Company's  facilities  are certified and qualified by Defense  Supply Center
Columbus  (DSCC) to  MIL-PRF-38534  (class K-space  level);  MIL-PRF-19500  JANS
(space  level),  MIL-PRF-28750  (class K space  level) and is  certified  to ISO
9001-2002.   Micropac  is  a  NASA  core   supplier,   and  is   registered   to
AS9100-Aerospace Industry standard for supplier certification.

The business was started in 1963 as a sole proprietorship. On March 3, 1969, the
Company was incorporated  under the name of "Micropac  Industries,  Inc." in the
state of Delaware.  The stock was publicly held by 516  shareholders on November
30, 2007.


PRODUCTS AND TECHNOLOGIES
-------------------------

The Company's  products are either custom (being  application  specific circuits
designed  and  manufactured  to meet  the  particular  requirements  of a single
customer)  or  standard,   proprietary   components   such  as  catalog   items.
Custom-designed components are estimated to account for approximately 38% of the
Company's  sales for the fiscal year ended  November 30, 2007, and 40% in fiscal
2006;  standard components are estimated to account for approximately 62% of the
Company's  sales for the fiscal year ended November 30, 2007, and 60% for fiscal
2006.

Micropac Industries, Inc. provides microelectronic and optoelectronic components
and assemblies along with contract electronic manufacturing services and offers
a wide range of products sold to the industrial, medical, military, aerospace
and space markets.

The Company's  core  technology is the packaging and  interconnect  of miniature
electronic  components,  utilizing thick film and thin film substrates,  forming
microelectronics  circuits.  Other technologies include light emitting and light
sensitive  materials and products,  including  light emitting diodes and silicon
phototransistors   used  in  the  Company's   optoelectronic   components,   and
assemblies. The Company's basic products and technologies include:

          Custom design hybrid microelectronic circuits
          Solid state relays and power controllers
          Custom optoelectronic assemblies and components
          Optocouplers
          Light-emitting diodes
          Hall-Effect devices
          Displays
          Power operational amplifiers
          Fiber optic components and assemblies
          High temperature (200(0) C) products

Micropac's products are primarily sold to original equipment manufacturers (OEM)
who serve the following major markets:

          Military/Aerospace   -   aircraft   instrumentation,    guidance   and
          navigations  systems,   control  circuitry,   power  supplies,   laser
          positioning
          Space - control circuitry, power monitoring and sensing
          Industrial - power control equipment, robotics
          Medical

The  Company  has  no  patents,  licenses,  franchises,   concessions,   royalty
agreements or labor contracts.  The Company's trademark "Mii" is registered with
the U.S. Patent and Trademark Office.

Sales of our products  internationally  are subject to  government  regulations,
including  export  control  regulations  of the U.S.  Department  of  State  and
Department  of Commerce.  Violation of these  regulations  by the company  could
result in monetary penalties and denial of export  privileges.  We are not aware
of any violations of export control regulations.

The  Company is not  currently  impacted  by export  restrictions  on  sensitive
technology.  Five  (5) of  the  Company's  principal  product  families  require
government approval.  Further, a significant portion of our business is military


<PAGE>

and is dependent on maintaining our facility  certifications  to  MIL-PRF-38534,
MIL-PRF-19500 and MIL-PRF-28750.  We expect to maintain these certifications and
qualifications;  however,  the loss of any of these  certifications would have a
significant impact on our business.

Government  regulations impose certain controls on chemicals used in electronics
and  semiconductor  manufacturing.  Micropac  has  obtained  all  the  necessary
environmental  permits, and routinely monitors and reports the wastewater stream
results  to the  local  governing  agency.  Micropac  is  classified  as a small
generator  of  hazardous  waste,  and the  annual  cost of  complying  with  the
regulations is minimal.

In  2007,  the  Company's   investment  in  technology   through   research  and
development,  which was expensed,  totals  approximately  $301,000  ($494,000 in
2006).  The  Company's  research  and  development  expenditures  were  directed
primarily toward long-term  specific customer  requirements,  some of which have
future potential as Micropac proprietary  products,  and product development and
improvement associated with the Company's space level and other high reliability
programs.

The Company  introduced  new Solid State  Power  Controllers  (SSPC) as the next
generation  of solid  state  relays  with  enhanced  ruggedness  and voltage and
current  carrying  capabilities.  Micropac's SSPCs feature both an instantaneous
over current  trip as well as I^2T which  compares  power used over time.  These
devices  range from 28VDC to 400VDC and from 5Amps to 40Amps.  The SSPC  Product
Family is fully capable of being Class K screened per MIL-PRF  38534.  Radiation
tolerant  versions of these  products are also  available.  Micropac  strives to
provide the greatest  power  density per package  volume and strives to meet the
stringent efficiency requirements of customers in today's market.

In addition to the  Company's  investment in research and  development,  various
customers paid the Company approximately  $124,000 in non-recurring  engineering
costs   associated   with  the  development  of  custom  products  for  specific
applications.

The  Company  provides  a one year  warranty  from the date of  shipment  to the
original  purchaser.  The  Company is  obligated  under this  warranty to either
replace  or repair  defective  goods or refund  the  purchase  price paid by the
buyer.

CUSTOMERS
---------

The Company's products are marketed  throughout the United States and in Western
Europe, through a direct technical sales staff, independent  representatives and
independent  stocking  distributors.  Approximately  17% of the sales for fiscal
year  2007  (18% in 2006)  were to  international  customers.  Sales to  Western
European   customers  are  made  by   independent   representatives   under  the
coordination of the Company's office in Bremen, Germany.

Sales  through the  Company's  distribution  channels  were  $4,474,000  in 2007
compared to $4,519,000 in 2006 or 24% and 26% of sales, respectively.

The  Company's  major  customers  include   contractors  to  the  United  States
government with fixed price  contracts.  Sales to these customers for Department
of  Defense  (DOD) and  National  Aeronautics  and Space  Administration  (NASA)
contracts  accounted for  approximately 71% of the Company's fiscal net sales in
2007 compared to 69% in 2006.

The Company's major customers are Lockheed  Martin,  Northrop  Grumman,  Boeing,
Raytheon, BAE, Schlumberger, Honeywell, Rockwell Int'l and NASA.

At any time a single customer may have a disproportionate and material impact on
the company's operations and profit and loss.

BACKLOG
-------

At November  30,  2007,  the Company had a backlog of unfilled  orders  totaling
approximately  $7,918,000  compared to approximately  $9,527,000 at November 30,
2006.  The Company  expects to complete  and ship most of its  November 30, 2007
backlog during fiscal 2008.

EMPLOYEES
---------

At November 30, 2007, the Company had 136 full-time  employees  (compared to 134
at November 30, 2006), of which 22 were executive and managerial  employees,  34
were   engineers   and   quality-control   personnel,   20  were   clerical  and
administrative  employees,  and  60  were  production  personnel.  None  of  the
Company's employees were covered by collective bargaining agreements.

The Company is an Equal  Opportunity  Employer.  It is the  Company's  policy to
recruit,  hire, train and promote personnel in all job classifications,  without
regard to race, religion,  color,  national origin, sex or age. Above and beyond
non-discrimination, we are committed to an Affirmative Action Program, dedicated
to the hiring,  training,  and advancement  within the Company of minority group
members, women and handicapped individuals.


<PAGE>

COMPETITION
-----------

The Company  competes  with two or more  companies  with  respect to each of its
major products,  including custom hybrid  microcircuits,  solid state relays and
power controllers, optocouplers,  light-emitting diodes, light sensitive silicon
phototransistors and diodes,  hall-effect devices,  displays,  power operational
amplifier,  custom optoelectronic components and assemblies.  These products and
technologies are sold into various markets, including military/aerospace, space,
industrial and medical.  Some of these  competitors  are larger and have greater
capital   resources  than  the  Company.   Management   believes  the  Company's
competitive  position is favorable  with regard to our product  reliability  and
integrity,  past  performance,  customer  service  and  responsiveness,   timely
delivery and pricing;  however,  no assurance  can be given that the Company can
compete successfully in the future.

The hybrid  microcircuits  product line, including custom  microcircuits,  solid
state relays,  power operational  amplifiers and regulators accounted for 48% of
the Company's business in 2007, and the  Optoelectronics  product line accounted
for 52% of the Company's business in 2007, compared to 47% and 53% in 2006.

There  are  approximately  38  independent  hybrid  microcircuit   manufacturing
companies  who are  certified  to  supply  microcircuits  to  MIL-PRF-38534,  in
addition to OEM's,  who  manufacture  hybrid  microcircuits  for their  internal
needs. Micropac may compete with all of these for hybrid microcircuit  business.
Some of the Company's primary  competitors are Teledyne  Industries,  Inc., M.S.
Kennedy, Aeroflex, Avago, Optek, and Isolink.


SUPPLY CHAIN
------------

The parts and raw materials for the Company's  products are generally  available
from more than one  source.  Except for  certain  optoelectronic  products,  the
Company does not  manufacture the basic parts or materials used in production of
its  products.  From time to time,  the Company has  experienced  difficulty  in
obtaining  certain  materials  when needed.  The  Company's  inability to secure
materials for any reason could have adverse effects on the Company's  ability to
deliver  products  on a  timely  basis.  The  Company  uses  capacitors,  active
semiconductor  devices  (primarily  in chip form),  hermetic  packages,  ceramic
substrates, resistor inks, conductor pastes, precious metals and other materials
in its manufacturing  operations.  However,  the Company has not been materially
affected by such  shortages.  The Company's  delivery  commitments  to customers
allow for adequate lead times for production of the products including lead time
for order and receipt from the supply chain.

Some  of the  Company's  primary  suppliers  are  International  Rectifier,  NTK
Technologies,  Electrovac, Schott Glass, Schlumbereger,  Micross Components, and
Aborn Electronics.


CAUTIONARY STATEMENTS - RISK FACTORS
------------------------------------

This Form 10-KSB contains  forward-looking  statements that are made pursuant to
the safe harbor  provisions of the Private  Securities  Litigation Reform Act of
1995.  Actual  results  could  differ  materially.  Investors  are  warned  that
forward-looking  statements involve risks and unknown factors including, but not
limited to, customer cancellation or rescheduling of orders,  problems affecting
delivery  of  vendor-supplied   raw  materials  and  components,   unanticipated
manufacturing problems and availability of direct labor resources.

Such  risks  and  uncertainties  include,  but are  not  limited  to  historical
volatility  and  cyclicality  of the  semiconductor  and  semiconductor  capital
equipment  markets that are subject to significant and often rapid increases and
decreases in demand. In addition, the Company produces silicon  phototransistors
and light  emitting diode die for use in certain  military,  standard and custom
products.  Fabrication  efforts sometimes may not result in successful  results,
limiting the  availability of these  components.  Competitors  offer  commercial
level  alternatives and our customers may purchase our competitors'  products if
the Company is not able to manufacture the products using these  technologies to
meet the customer demands.

The  Company  disclaims  any   responsibility  to  update  the   forward-looking
statements contained herein, except as may be required by law.

Majority shareholder ability to control the election of the Board of Directors

The  majority  shareholder  has the  ability  to  control  the  election  of the
Company's Board of Directors and elect  individuals who may be more  sympathetic
to such majority  shareholders'  desires and not necessarily  sympathetic to the
desires of  minority  shareholders  as to the  policies  and  directions  of the
Company.  However, the ability to control the election of the Board of Directors
does not modify the fiduciary  duties of the Board of Directors to represent the
interests of all shareholders

Availability of public share for purchase and sale

A small number of shares is available for public  purchase and sale. As a result
the company's reported share price may be subject to extreme fluctuations due in
part to the small number of shares traded at any time.


<PAGE>


Pricing pressures from customers for reduction in selling prices

The Company continues to experience  pricing pressures from some of its original
equipment  manufacturer (OEM) customers.  In some cases, the Company's customers
request the review of pricing for possible  reduction in selling price on future
orders.  This  requires the Company to improve its  productivity  and to request
similar  price  reductions  from  its  supplier  chain.  If one or  both  of the
approaches  by the Company  does not succeed,  the Company  could be required to
reduce the selling price on future orders reducing the product gross margins and
affecting the Company's net earnings in order to receive  future orders from the
customer. However, the Company has no agreement that requires a reduction in the
selling  price on any  current  customer  order.  All  contracts  are firm fixed
pricing.

Insurance coverage and exposure to substantial claims or liabilities

The Company operates manufacturing facilities in Garland, Texas and subcontracts
portions  of the Company  manufacturing  to a contract  manufacturer  in Juarez,
Mexico.  These  facilities  use  industrial  machines and  chemicals  that could
provide risks of personal injury and/or property  damage.  There is no assurance
that  accidents  will not occur.  If  accidents do occur,  the Company  could be
exposed to  substantial  liability.  The Company has no liability for the Mexico
operations.  The Company maintains worker's  compensation  insurance and general
liability  insurance for  protection of its employees and for  protection of the
Company's assets in Garland, Texas. In addition to the basic policies mentioned,
the Company  maintains an umbrella  insurance  policy.  The Company  reviews all
insurance coverage on an annual basis, and makes any necessary adjustments based
on risk assessment and changes in its business.  In the opinion of the Company's
management,  and its'  insurance  advisors,  the Company is adequately  insured;
however, the Company's financial position could be materially affected by claims
not covered or exceeding coverage currently carried by the Company.

The  Company is  subject to  numerous  environmental  regulations  or changes in
government policy

The  Company is  subject  to  governmental  regulations  pertaining  to the use,
storage,  handling and disposal of hazardous  substances used in connection with
its manufacturing  activities.  Failure of the Company to control all activities
dealing  with  hazardous  chemicals  could  subject the  Company to  significant
liabilities or could cause the Company to cease its manufacturing activities.

The Company could be adversely  affected by changes in laws and regulations made
by U.S. and non U.S.  governments and agencies  dealing with foreign  shipments.
Changes by regulatory  agencies dealing with  environmental  issues could affect
the cost of the  Company's  products and make it hard for a small  company to be
competitive with larger companies.

Product liability claims

The use of the Company's  products in commercial or government  applications may
subject the Company to product  liability  claims.  Although the Company has not
experienced any product  liability  claims,  the sale of any product may provide
risk of such claims.  Product liability claims brought against the Company could
have a material adverse effect on the Company's  operating results and financial
condition.

Component  shortages or  obsolescence  from  suppliers  could affect  ability to
manufacture or delay shipments of products

The Company relies on suppliers to deliver quality raw materials in a timely and
cost  effective  manner.  Most of the  materials  and  components  are generally
available  from  multiple  sources;  however,  from time to time  vendors do not
deliver  the  product  as needed due to  manufacturing  problems  or  possibly a
decision not to furnish that product in the future.  Such interruption of supply
or price  increases  could  have a  material  adverse  effect  on the  Company's
operation;  however,  the  Company  is  not  currently  materially  impacted  by
materials shortages.

The ability to develop new products and technologies used in the military, space
or aerospace markets

The Company's  base products and  technologies  generally have long life cycles.
The  Company's  products  are  primarily  used in  military,  space or aerospace
applications,  which also have long life cycles.  There can be no assurance that
the  Company  will be able to  define,  develop  and  market  new  products  and
technologies  on a timely  and cost  effective  basis.  Failure  to  respond  to
customer's  requirements and to competitors'  progress in technological  changes
could have a material adverse effect on the Company's business.



Item 2. Properties
------------------

The  Company  occupies   approximately  36,000  square  feet  of  manufacturing,
engineering and office space in Garland,  Texas.  The Company owns 31,200 square
feet of that space and leases an  additional  4,800  square  feet.  The  Company
considers its facilities adequate for its current level of operations.


<PAGE>

The Company also  subcontracts  some  manufacturing  to Inmobiliaria San Jose De
Ciuddad Juarez S.A. DE C.V, a maquila contract  manufacturer in Juarez,  Mexico.
The Company owns all equipment and inventory  with  temporary  importation  into
Mexico under the maquila rules of Mexico.  The Company does not lease or own any
real property in Mexico.

The  Company  employs an  International  Sales  Manager in Bremen,  Germany  who
coordinates   sales  to  Western   European   customers   made  by   independent
representatives.  The sales manager maintains an office in a private  residence.
The Company  does not lease or own any real  property  in Germany,  or any other
foreign country.

Item 3. Legal Proceedings
-------------------------

The  Company  is  not  involved  in  any  material   current  or  pending  legal
proceedings.


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

No matters were submitted to vote of the Company's  security holders through the
solicitation  of proxies by the Company  during the fourth quarter of the fiscal
year ended November 30, 2007.












<PAGE>

                                     PART II

Item 5.  Market  for the  Registrant's  Common  Equity and  Related  Stockholder
--------------------------------------------------------------------------------
Matters
-------

On November 30, 2007, there were approximately 516 shareholders of record of the
Company's  common  stock.  The  stock  of the  Company  is  closely  held;  and,
therefore,  certain  shareholders  have the ability to  significantly  influence
decisions. Our common stock is quoted on the OTC Bulletin Board under the symbol
"MPAD.OB". The following sets forth the high and low bid prices for each quarter
during the last two fiscal years:

                                                         High              Low
 Fiscal Year Ended November 30, 2007
      Fourth Quarter                                    $7.37             $6.55
      Third Quarter                                     $7.00             $5.75
      Second Quarter                                    $6.40             $5.75
      First Quarter                                     $6.10             $5.35

  Fiscal Year Ended November 30, 2006
      Fourth Quarter                                    $6.25             $5.35
      Third Quarter                                     $7.50             $5.95
      Second Quarter                                    $9.25             $7.00
      First Quarter                                    $14.74             $8.00


During the three (3) month period ended November 30, 2007,  approximately  7,310
shares  of  the   Company's   common   stock  was   reportedly   traded  in  the
over-the-counter  market at a reported  price range of $6.66 to $7.37 per share.
For the two (2) year period  ending  November  30, 2007,  approximately  503,022
shares  of  the   Company's   common  stock  were   reportedly   traded  in  the
over-the-counter  market  at  prices  ranging  from a low of  $5.35 to a high of
$14.74.  Due to this average  monthly volume of  approximately  20,959 shares of
common stock being  publicly  bought and sold during this two year  period,  the
Company does not believe this share trading  volume  represents the market value
of the Company's common stock held by non-affiliates.

Our stock prices  quoted on the OTC Bulletin  Board  represent  over-the-counter
market  quotations and reflect  inter-dealer  prices,  without  retail  mark-up,
mark-down or commission and may not represent actual transactions.

On December  22,  2005,  the Board of  Directors  of Micropac  Industries,  Inc.
approved the payment of a $.15 per share dividend to all  shareholders of record
on February 3, 2006. The dividend  payment was paid to  shareholders on February
10, 2006.

On December  22,  2006,  the Board of  Directors  of Micropac  Industries,  Inc.
approved the payment of a $.10 per share dividend to all  shareholders of record
on January 26, 2007. The dividend  payment was paid to  shareholders on February
9, 2007.

There are no plans to make the dividend permanent.


Item 6. Management's  Discussion and Analysis of Financial Condition and Results
--------------------------------------------------------------------------------
of Operations
-------------

Liquidity and Capital Resources
-------------------------------


The  Company  currently  has an  existing  line of credit  with a Texas  banking
institution.  The line of  credit  agreement  provides  the  Company  with up to
$3,000,000  for  normal  operation  of the  Company.  The  interest  rate on any
borrowings  against this credit  agreement is equal to the prime rate less 1/4%.
The line of credit requires the Company to maintain  certain  financial  ratios,
including  quick  ratio  of at least  1:1,  maintain  a  tangible  net  worth of
$6,250,000   plus   75%  of   future   net   income,   and   maintain   a  total
liabilities-to-tangible-net-worth  of  less  than  1.25:1.  The  Company  is  in
compliance  with these  covenants.  To date, the Company has not used any of the
available line of credit.  The Company expects to continue to generate  adequate
amounts  of cash to meet its  liquidity  needs  from the  sale of  products  and
services and the collection thereof.

The Company realized  $2,370,000 net in cash flows from operations in 2007. Cash
influx came primarily from the  combination of net income  totaling  $1,619,000,
recovery of depreciation totaling $262,000, decrease of inventories of $477,000,
increase in income tax  liabilities  of  $207,000,  increase in payroll  related
liabilities  of  $50,000;  increase in  accounts  payables  of  $26,000;  and an
increase  in  other  accrued  liabilities  of  $86,000  and use of cash  with an
increase of accounts receivables of $367,000

The Company used $287,000 in cash for  investment  in  additional  manufacturing
equipment,  computers and facility  improvements in 2007 compared to $256,000 in
2006.


<PAGE>
<TABLE>
<CAPTION>

On December  22,  2005,  the Board of  Directors  of Micropac  Industries,  Inc.
approved the payment of a $.15 per share dividend to all  shareholders of record
on February 3, 2006. The dividend  payment was paid to  shareholders on February
10, 2006.

On December  22,  2006,  the Board of  Directors  of Micropac  Industries,  Inc.
approved the payment of a $.10 per share dividend to all  shareholders of record
on January 26, 2007. The dividend  payment was paid to  shareholders on February
9, 2007.

As of November 30, 2007, the Company had $4,394,000 in cash and cash equivalents
and $2,021,000 in short term investments compared to $2,558,000 in cash and cash
equivalents and $2,025,000 in short term investments on November 30, 2006.

Company management believes it will meet its 2008 capital  requirements  through
the use of cash  derived  from  operations  for the  year  and/or  usage  of the
Company's  short-term   investments.   There  were  no  significant  outstanding
commitments for equipment purchases or improvements at November 30, 2007.


Results of Operations 2007 vs. 2006
-----------------------------------

                                  Three Months Ended                Twelve Months Ended
                               11/30/07         11/30/06         11/30/07         11/30/06
<S>                            <C>              <C>              <C>              <C>

Net Sales                        100.0%           100.0%           100.0%           100.0%

Cost of sales                     68.3%            66.7%            68.1%            66.5%
R & D                              1.4%             2.8%             1.6%             2.9%
S, G, & A                         17.4%            21.2%            17.7%            18.4%
  Total Cost & Expenses           87.1%            90.7%            87.4%            87.8%

Operating Income                  12.9%             9.3%            12.6%            12.2%

Other and Interest Income          1.7%             1.3%             1.2%             1.0%

Income Before Income Taxes        14.6%            10.6%            13.8%            13.2%

Provision for taxes                4.9%             3.7%             5.1%             4.9%

Net Income                         9.6%             6.9%             8.7%             8.3%

</TABLE>

Sales in 2007 were approximately $18,524,000,  an increase of 8.0% or $1,368,000
compared to 2006 sales.  The increase in sales is primarily  attributable  to an
increase in space level product sales to various  customers,  optocouplers to an
international  customer,  offset by a decrease  in  industrial  products  to one
customer.

The Company's  management  expects sales and profits to be stable in 2008, based
on the  current  backlog of  optoelectronics  products,  certain  space  product
contracts, and requirements for microcircuits.

New orders for fiscal year 2007 total  $17,002,000  compared to $17,340,000  for
fiscal 2006.  Approximately  $10,429,000 of the new orders received in 2007 were
delivered to  customers  in 2007,  along with  approximately  $8,088,000  of the
Company's $9,527,000 backlog of orders at November 30, 2006.

The Company's  backlog as of November 30, 2007,  was  approximately  $7,918,000,
compared to approximately $9,527,000 on November 30, 2006.

Custom-designed components are estimated to account for approximately 38% of the
Company's  sales for the fiscal year ended  November 30, 2007, and 40% in fiscal
2006;  standard components are estimated to account for approximately 62% of the
Company's  sales for the fiscal year ended November 30, 2007, and 60% for fiscal
2006.

Approximately  17% of the sales  for  fiscal  year  2007  (18% in 2006)  were to
international  customers.  Sales  to  Western  European  customers  are  made by
independent  representatives  under the  coordination of the Company's office in
Bremen, Germany.

Sales  through the  Company's  distribution  channels  were  $4,474,000  in 2007
compared  to  $4,519,000  in 2006 or 24% and  26% of  sales,  respectively.



<PAGE>

The  Company's  major  customers  include   contractors  to  the  United  States
government with fixed price  contracts.  Sales to these customers for Department
of  Defense  (DOD) and  National  Aeronautics  and Space  Administration  (NASA)
contracts  accounted for  approximately 71% of the Company's fiscal net sales in
2007 compared to 69% in 2006.

Cost of sales, as a percentage of net sales, was 68.1% in 2007 compared to 66.5%
in 2006. The increase of 1.6% is  attributable  to higher  material cost for the
space level products  offset by stable fixed  operating  expense on higher sales
volume.  In actual dollars,  cost of sales increased  $1,207,000 for 2007 versus
2006.

Expenses  for  research  and  development  total  $301,000  in 2007  compared to
$494,000  in  2006.  Most  of  the  research  and   development   expenses  were
concentrated  on expanding the company's line of solid state power  controllers,
detectors,   hall-effect  devices;   and  continued   investments  in  enhancing
manufacturing processes to improve the Company's competitive position.

Selling,  general, and administrative expenses total 17.7% of net sales in 2007,
compared to 18.4% in 2006, based on higher sales. In dollars expensed,  selling,
general and  administrative  expenses  totaled  $3,278,000  in 2007  compared to
$3,152,000 in 2006, an increase of $126,000.

Interest and other income for fiscal 2007 totaled $226,000  compared to $161,000
for  fiscal  2006.  The  increase  is related  to higher  interest  rates on the
Company's investments.

Income before taxes for fiscal 2007 was approximately $2,561,000 or 13.8% of net
sales,  compared to $2,268,000 or 13.2% of net sales in fiscal 2006.  Net income
after taxes  totaled  approximately  $1,619,000 or $.63 per share in 2007 versus
2006 net  income  of  $1,419,000  or $.55 per  share.  Net  income  after  taxes
increased $200,000 in 2007 compared to 2006.


New Accounting Standards
------------------------

In September 2006, the FASB issued SFAS No. 157, "Fair Value Measurements".  The
objective of SFAS 157 is to increase consistency and comparability in fair value
measurements and to expand disclosures about fair value  measurements.  SFAS 157
defines  fair  value,  establishes  a  framework  for  measuring  fair  value in
generally accepted  accounting  principles,  and expands  disclosures about fair
value measurements.  SFAS 157 applies under other accounting pronouncements that
require or permit  fair value  measurements  and does not  require  any new fair
value measurements.  The provisions of SFAS No. 157 are effective for fair value
measurements  made in fiscal  years  beginning  after  November  15,  2007.  The
adoption of this  statement  is not  expected  to have a material  effect on the
Company's future reported financial position or results of operations.


In February 2007, the Financial  Accounting  Standards  Board (FASB) issued SFAS
No. 159, "The Fair Value Option for Financial Assets and Financial Liabilities -
Including an Amendment  of FASB  Statement  No.  115".  This  statement  permits
entities to choose to measure many financial instruments and certain other items
at fair  value.  Most of the  provisions  of SFAS No. 159 apply only to entities
that  elect the fair  value  option.  However,  the  amendment  to SFAS No.  115
"Accounting for Certain  Investments in Debt and Equity  Securities"  applies to
all entities with  available-for-sale  and trading  securities.  SFAS No. 159 is
effective as of the beginning of an entity's first fiscal year that begins after
November 15, 2007.  Early  adoption is permitted as of the beginning of a fiscal
year that begins on or before November 15, 2007, provided the entity also elects
to apply the provision of SFAS No. 157, "Fair Value Measurements".  The adoption
of this  statement  is not expected to have a material  effect on the  Company's
financial statements.

In June 2007,  the Emerging  Issues Task Force of the FASB issued EITF Issue No.
07-3,  Accounting for Nonrefundable Advance Payments for Goods or Services to be
Used in Future  Research  and  Development  Activities,  ("EITF  07-3") which is
effective for fiscal years beginning after December 15, 2007. EITF 07-3 requires
that  nonrefundable   advance  payments  for  future  research  and  development
activities  be deferred and  capitalized.  Such amounts will be recognized as an
expense as the goods are delivered or the related  services are  performed.  The
Company does not expect the  adoption of EITF 07-3 to have a material  impact on
the financial results of the Company.


Item 7.  Financial Statements
-----------------------------

The  financial  statements  listed  below  appear on pages 19 through 26 of this
Report.  The Company is not required to furnish the Supplementary  Data required
by Item 302 of Regulation S-K.

       Page No.
       --------

          17        Report of Independent Registered Public Accounting Firm

          18        Balance Sheets as of November 30, 2007 and 2006


<PAGE>



          19        Statements  of Income for the years ended  November 30, 2007
                    and 2006


          20        Statements  of  Shareholders'  Equity  for the  years  ended
                    November 30, 2007 and 2006

          21        Statements  of Cash Flows for the years ended  November  30,
                    2007 and 2006

         22-26      Notes to Financial  Statements  for the years ended November
                    30, 2007 and 2006

Item 8.  Changes  in  and  Disagreements  with  Accountants  on  Accounting  and
--------------------------------------------------------------------------------
Financial Disclosure
--------------------


None

Item 8A. Controls and Procedures
--------------------------------

The Company maintains disclosure controls and procedures designed to ensure that
information  required to be  disclosed  in reports  filed  under the  Securities
Exchange  Act of 1934,  as  amended,  is  recorded,  processed,  summarized  and
reported  within  the  specified  time  periods.  Disclosure  controls  are also
designed with the objective of ensuring that this information is accumulated and
communicated to our management,  including our Chief Executive Officer and Chief
Financial Officer,  as appropriate to allow timely decisions  regarding required
disclosure.  As of the end of the period  covered by this report,  the Company's
management,  including the Chief Executive Officer and Chief Financial  Officer,
evaluated the effectiveness of the Company's disclosure controls and procedures.
Based on the evaluation, which disclosed no significant deficiencies or material
weaknesses,  the Chief  Executive  Officer  and  Chief  Financial  Officer  each
concluded that the Company's disclosure controls and procedures are effective.


















<PAGE>
<TABLE>
<CAPTION>
                                    PART III

In accordance with General Instruction G(3) of Form 10-KSB, the information
required by this Part III is incorporated by reference to Micropac Industries,
Inc.'s definitive proxy statement relating to its 2008 Annual Meeting of
Stockholders, as set forth below. The 2008 Proxy Statement will be filed with
the Securities and Exchange Commission on or about February 8, 2008.


Item 9.  Directors & Executive Officers of The Registrant

The information set forth in the 2007 Proxy Statement under the headings
"Election of Directors", and "Principal Stockholders and Stockholdings of
Management", is incorporated herein by reference.

                                       Position(s) With
Name                       Age            the Company                           Director Since
----                       ---            -----------                           --------------
<S>                        <C>            <C>                                   <C>

H. Kent Hearn              71        Director and Member of Audit
                                     Committee                                   February 1983

Heinz-Werner Hempel        79        Director and Member of Audit
                                     Committee                                   February 1997

James K. Murphey           65        Director and Member of Audit
                                     Committee                                   March 1990

Nicholas Nadolsky          74        Director and Member of Audit
                                     Committee                                   May 2005

Connie Wood                68        Director and Member of Audit
                                     Committee, Former CEO and President         May 2002

Mark King                  53        Director, CEO, President and
                                     Member of Audit Committee                   October 2005

Patrick Cefalu             50        CFO, Vice President

</TABLE>

Mr. Hearn is a former stockbroker of Milkie/Ferguson  Investments,  Inc., having
retired in December 2006. Mr. Hearn was formerly employed by Harris  Securities,
Dallas, Texas.

Mr. Hempel is the Chief Operating Officer of Hanseatische Waren-Gesellschaft MBH
& Co, KG, Bremen Germany.

Mr. Murphey is an attorney and member of the law firm Glast,  Phillips & Murray,
P.C. in Dallas, Texas. Glast, Phillips & Murray, P.C. serves as legal counsel to
the company. Prior to 2001, Mr. Murphey was a member of the law firm of Secore &
Waller, L.L.P. in Dallas, Texas.

Mr. Nadolsky served as the Company's Chief Executive Officer and Chairman of the
Board  until his  medical  leave of absence  beginning  May 2002.  Mr.  Nadolsky
retired from the Company in May 2003.

Mrs.  Wood is the former Chief  Executive  Officer and President of the Company,
having  retired in October  2005,  and served as a  full-time  consultant  until
December 31, 2005. Mrs. Wood was elected as Chief Executive Officer in May 2002.
Prior to May 2002,  Mrs. Wood was President and Chief  Operating  Officer of the
Company.

Mr. King is the Chief Executive  Officer and President of the Company.  Prior to
November  2002,  Mr. King was  President  and Chief  Operating  Officer of Lucas
Benning  Power  Electronics.  Mr. King joined the company in November of 2002 as
the  Chief  Operating  Officer  and was  elected  as  Chief  Executive  Officer,
President and Board Member in October 2005.

The Board of  Directors  held  five (5) board  meetings  during  the year  ended
November 2007.  Directors  (other than Mr. King) received a fee of $1,500.00 for
each meeting attended during the year ended November 2007. Beginning on December
1, 2005, the Board provided for the payment of an annual  retainer of $10,000 to
Messrs  Nadolsky and Hearn and Mrs. Wood.  Mrs. Wood, Mr. Nadolsky and Mr. Hearn
attended all of the meetings.  Mr. Murphey attended four (4) of the meetings and
Mr. Hempel  attended two (2) of the meetings.



<PAGE>
<TABLE>
<CAPTION>

The Audit  Committee  held four (4) meetings  during the year ended November 30,
2007.  Members (other than Mark King) of the Audit  Committee  received a fee of
$750.00 for each  meeting  attended  during the year ended  November  2007.  Mr.
Murphey,  Mr.  Nadolsky,  Mrs. Wood, and Mr. Hearn attended all of the meetings.
Mr. Hempel attended one (1) meeting.

With  the  exception  of Mr.  Hearn,  members  of the  Audit  Committee  are not
considered as independent members under applicable United States statutes.

The Board of Directors has evaluated the credentials of Nicholas  Nadolsky,  and
has determined that Mr. Nadolsky is an "audit committee financial expert" within
the meaning of 401(e) of Regulation S-B.

The Board does not have a nominating  committee due to the Company's small size.
The Board does not provide a process for security holders to send communications
to the Board of Directors due to the infrequent  nature of such  communications.
The Board has not  adopted a policy with regard to Board  member  attendance  at
annual  meetings.  Five (5)  Board  Members  attended  the prior  year's  annual
meeting.

Item 10.  Executive Compensation
--------------------------------

The  information  set  forth in the  2008  Proxy  Statement  under  the  heading
"Management Remuneration and Transactions", is incorporated herein by reference.

The following  table shows as of November 30, 2007, all cash  compensation  paid
to, or accrued and vested for the account of Mr. Mark King,  President and Chief
Executive  Officer and Mr. Patrick  Cefalu,  Vice President and Chief  Financial
Officer. Mr. King and Mr. Cefalu received no non-cash compensation during 2007.

The company does not have any equity compensation plans.

                                                 Annual Compensation
                                                 -------------------

Name and                                           Annual                             Other              All Other
Principal Position                  Year           Salary              Bonus     Annual Compensation   Compensation
                                                                                        (a)                 (b)
====================================================================================================================================
<S>                                 <C>          <C>                   <C>             <C>               <C>

Mark King,                          2007         $232,641.33           $20,000          -0-              $25,452.21
President and                       2006         $220,317.81           $29,500          -0-              $15,981.33
Chief Executive Officer (1)         2005         $163,395.50           $14,500         $500              $13,383.62

Patrick Cefalu,                     2007         $123,161.42           $20,000          -0-              $11,978.68
Vice President and                  2006         $114,467.91           $29,500          -0-              $ 6,736.33
Chief Financial Officer             2005         $  90,906.21          $14,500          -0-              $10,749.07

</TABLE>



     (a)  Reflects fees for Board meetings and Audit Committee meetings
     (b)  Reflects  amounts  contributed  by Micropac  Industries,  Inc.,  under
          Micropac's  401(k)  profit  sharing  plan;  unused  vacation  pay; and
          reimbursement  for medical  expenses under  Micropac's  Family Medical
          Reimbursement Plan.



--------------------------------------------------------------------------------

     (1) Effective November 2005, Mr. King's existing  employment  agreement was
     revised  to  provide:  (1)  that Mr.  King  would  serve  as the  Company's
     President  and  Chief  Executive  Officer,  and a  member  of the  Board of
     Directors  and Audit  Committee  at a base salary of $186,400 for a term of
     three (3) years.  In December  2005,  the Company and Mr. King  amended his
     employment agreement to increase his annual base salary to $225,000.



Amount included in all other compensation relating to employee benefit plans
----------------------------------------------------------------------------

The Company maintains a Family Medical Reimbursement Plan for the benefit of its
executive  officers  and their  dependents.  The Plan is funded  through a group
insurance policy issued by an independent carrier and provides for reimbursement
of 100% of all bona fide  medical  and dental  expenses  that are not covered by
other medical  insurance plans.  During the fiscal year ended November 30, 2007,
Mr. King received $1,658.27 and Mr. Cefalu received $11,978.68 which amounts are
included  in  the  "All  Other  Compensation"  column  shown  in  the  preceding
remuneration table.


<PAGE>

In July 1984,  the Company  adopted a Salary  Reduction Plan pursuant to Section
401(k) of the Internal  Revenue Code.  The Plan's  benefits are available to all
Company  employees who are at least 18 years of age and have  completed at least
six months of service to the Company as of the  beginning  of a Plan year.  Plan
participants  may elect to defer up to 15% of their total  compensation as their
contributions,  subject to the  maximum  allowed by the  Internal  Revenue  code
401(k),  and the Company  matches their  contributions  up to a maximum of 6% of
their total  compensation.  A  participant's  benefits vest to the extent of 20%
after two years of eligible  service and become  fully  vested at the end of six
years.  During the  fiscal  year ended  November  30,  2007,  the  Company  made
contributions to the Plan for Mr. King in the amount of $15,583.60 which amounts
are  included  in the "All Other  Compensation"  column  shown in the  preceding
remuneration table.

Employment  agreements of the Company's  officers provide that they may elect to
carry over any unused  vacation time to  subsequent  periods or elect to be paid
for such unused vacation time. In 2007, Mr. King received unused vacation pay in
the amount of $8,210.34 which is included in the "All Other Compensation" column
shown in the preceding remuneration table

On January 15,  2001,  the Board of Directors  adopted the Micropac  Industries,
Inc.  2001  Employee  Stock Option Plan.  To date,  no options have been granted
under the Plan.


Item 11.  Security Ownership of Certain Beneficial Owners and Management
------------------------------------------------------------------------

The  information  set  forth in the  2008  Proxy  Statement  under  the  heading
"Principal  Stockholders and Stockholdings of Management" is incorporated herein
by reference.

















<PAGE>
<TABLE>
<CAPTION>

The following  table shows the number and  percentage of shares of the Company's
common stock  beneficially  owned (a) by each person known by the Company to own
5% or more of the  outstanding  common stock,  (b) by each director and nominee,
and (c) by all present officers and directors as a group.

Name and Address                                    Number of Shares            Percent
of Beneficial Owner                                Beneficially Owned          of Class(1)
-------------------                                ------------------          -----------
<S>                                                <C>                         <C>

Heinz-Werner Hempel (2)(3)(4)                           1,952,577                  75.7%
Micropac Industries
Vermoegensverwaltungsgesellschaft buergerlichen
Rechts Hanseatische Waren-Gesellschaft
         MBH & Co., KG
Am Wall 127
28195 Bremen 1 Germany

H. Kent Hearn (3)                                           3,500              Less than .2%
1409 Briar Hollow
Garland, Texas 75043

James K. Murphey (3)                                        -0-                   --
2290 One Galleria Tower
13355 Noel Road, L.B.75
Dallas, Texas 75240

Nicholas Nadolsky (3)                                       -0-                   --
1322 Briar Hollow
Garland, Texas 75043

Connie Wood (3)                                              6,000             Less than .3%
877 FM 2948
Como, Texas 75431

Mark King(3)                                                -0-                     --
2905 Wyndham Lane
Richardson, Texas 75082

Patrick Cefalu                                              -0-                     --
8706 Arborside
Rowlett, Texas 75089

All officers and directors                              1,962,077                  76.1%
  as a group (7 Persons)
-----------------------

</TABLE>

(1)  Calculated on the basis of the 2,578,315  outstanding shares.  There are no
     options, warrants, or convertible securities outstanding.

(2)  The  Company  and Mr.  Heinz-Werner  Hempel  are  parties  to an  Ancillary
     Agreement  entered into in March 1987.  The Ancillary  Agreement  primarily
     obligates the Company to register Mr.  Hempel's stock and allows Mr. Hempel
     to participate in any sale of stock by the Company.

(3)  A director of the Company.  On January 23, 2008, Mr. Nadolsky announced his
     plan not to run for  re-election as a Director and Chairman of the Board of
     Micropac  Industries,  Inc.  (the  "Company")  due to health  reasons.  Mr.
     Nadolsky will continue to serve in such positions  until the Company's next
     Annual Shareholder Meeting scheduled for March 7, 2008. All other directors
     have been nominated for re-election at the Annual Meeting.

(4)  Effective  October  10,  2007,  the  Company's  majority  shareholder,  Mr.
     Heinz-Werner Hempel,  transferred all of the shares of the Company's common
     stock,  $.10 par value  and  consisting  of  1,952.577  shares to  Micropac
     Industries,  Inc.  Vermoegensverwaltungsgesellschaft  buergerlichen Rechts.
     This  Partnership is composed of Mr. Hempel,  his son and his daughter.  As
     the consideration for this transfer,  Mr. Hempel received a 99.98% share in
     this  partnership and retains the sole voting and management  control.  His
     son and daughter each own 0.01% in this Partnership.


<PAGE>

Item 12.  Certain Relationships and Related Transactions
--------------------------------------------------------

The  information  set  forth in the  2008  Proxy  Statement  under  the  heading
"Management Remuneration and Transactions" is incorporated herein by reference.

Since  1980,  the  Company  has  leased a 4,800  square-foot  building  from Mr.
Nadolsky  which  is used  primarily  for  manufacturing.  The  lease  originally
provided for a monthly  rental of $1,900 (an amount  based upon a January  1984,
independent  appraisal  of the  building's  value)  and was to have  expired  on
January 1, 1987.  Since 1987,  the Company has  extended  the term of this lease
from time to time.  The rental paid to Mr.  Nadolsky  pursuant to this lease was
$41,936 for the fiscal year ended  November 30, 2007.  The lease was renewed for
three (3) years,  July 2007 to June 2010 at the same rental rate provided for in
the  previous  lease  subject to increase  based upon  increases in the Consumer
Price Index.


Item 13.  Principal Accountant Fees and Services
------------------------------------------------

The  information  set  forth in the  2008  Proxy  Statement  under  the  heading
"Independent  Public  Accountants"  and "Audit Fees" is  incorporated  herein by
reference.

KPMG  LLP was  selected  as the  independent  accountants  in 2002  and has been
responsible  for the  Company's  financial  audit  for the  fiscal  years  ended
November 30, 2002 through November 30, 2007.

Management  anticipates that a  representative  from KPMG LLP will be present at
the Annual  Meeting and will be given the  opportunity to make a statement if he
or she desires to do so. It is also anticipated that such representative will be
available to respond to appropriate questions from stockholders.

AUDIT FEES

KPMG LLP fees for professional services for the audit of the Company's financial
statements for 2007 and the review of the interim financial  statements included
in the Quarterly Reports are $101,000.

TAX FEES

In  addition  to the audit  fees,  KPMG LLP fees for tax  advisory  and 2006 tax
return preparation services were $12,370.

ALL OTHER FEES

KPMG LLP did not provide any other services.

The Audit  Committee  requested  that KPMG,  LLP provide the committee  with the
anticipated  charges of all accounting and tax related  services to be performed
by KPMG,  LLP in  advance  of  performing  such  services.  The Audit  Committee
approves all KPMG, LLP tax return  preparation in advance of the  performance of
such services.

Item 14.  Exhibits and Reports on Form 8-K
------------------------------------------

(a)      Exhibits


           31.1     Certification of Chief Executive Officer pursuant to Section
                    302 of the Sarbanes- Oxley Act of 2002

           31.2     Certification  of  Chief  Accounting   Officer  pursuant  to
                    Section 302 of the Sarbanes- Oxley Act of 2002

           32.1     Certification  of Chief  Executive  Officer  pursuant  to 18
                    U.S.C.  section 1350, as adopted  pursuant to section 906 of
                    the Sarbanes-Oxley act of 2002.

           32.2     Certification of Chief Accounting  Officer pursuant to 18 U.
                    S. C. section  1350,  as adopted  pursuant to section 906 of
                    the Sarbanes-Oxley act of 2002.


<PAGE>

(b) Form 8K -

                    On December  22,  2005,  the Board of  Directors of Micropac
                    Industries,  Inc.  approved  the payment of a $.15 per share
                    dividend to all  shareholders of record on February 3, 2006.
                    The dividend  payment was paid to  shareholders  on February
                    10, 2006.

                    On December  22,  2006,  the Board of  Directors of Micropac
                    Industries,  Inc.  approved  the payment of a $.10 per share
                    dividend to all  shareholders of record on January 26, 2007.
                    The dividend payment was paid to shareholders on February 9,
                    2007.

                    Effective   October  10,  2007,   the   Company's   majority
                    shareholder, Mr. Heinz-Werner Hempel, transferred all of the
                    shares of the  Company's  common  stock,  $.10 par value and
                    consisting of 1,952.577 shares to Micropac Industries,  Inc.
                    Vermoegensverwaltungsgesellschaft buergerlichen Rechts. This
                    Partnership  is  composed  of Mr.  Hempel,  his  son and his
                    daughter. As the consideration for this transfer, Mr. Hempel
                    received a 99.98% share in this  partnership and retains the
                    sole voting and  management  control.  His son and  daughter
                    each own 0.01% in this Partnership.






                                   SIGNATURES


Pursuant to the  requirements of Section 13 or 15(d) of the Securities  Exchange
Act of 1934,  the  registrant  has duly  caused  this report to be signed on its
behalf by the undersigned, thereunto duly authorized.


                                         MICROPAC INDUSTRIES, INC.




                                         By:   /s/ Mark King
                                               --------------------------------
                                               Mark King, President
                                               and Chief Executive Officer
                                               (Principal Executive Officer)


                                         By:   /s/Patrick Cefalu
                                               -----------------
                                               Patrick Cefalu, CFO and
                                               Principal Accounting Officer



Dated:  02/11/2008

Pursuant to the  requirements  of the Securities and Exchange Act of 1934,  this
report  has  been  signed  below  by the  following  persons  on  behalf  of the
registrant and in the capacities indicated on 02/11/2008.



   /s/ Connie Wood                                 /s/ Kent Hearn
--------------------------------------         ---------------------------------
     Connie Wood, Director                     H. Kent Hearn, Director


  /s/ James Murphey                               /s/ Heinz-Werner Hempel
--------------------------------------         ---------------------------------
     James K. Murphey, Director                Heinz-Werner Hempel, Director


  /s/ Nicholas Nadolsky                           /s/ Mark King
--------------------------------------          --------------------------------
     Nicholas Nadolsky, Director               Mark King, Director


<PAGE>

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM


The Board of Directors and Shareholders
Micropac Industries, Inc.:

We have audited the accompanying balance sheets of Micropac Industries,  Inc. as
of  November  30,  2007  and  2006,  and  the  related   statements  of  income,
shareholders'  equity,  and cash flows for the years then ended. These financial
statements   are  the   responsibility   of  the   Company's   management.   Our
responsibility  is to express an opinion on these financial  statements based on
our audits.

We conducted our audits in accordance  with the standards of the Public  Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement.  An audit includes examining, on a
test basis,  evidence  supporting  the amounts and  disclosures in the financial
statements.  An audit also includes assessing the accounting principles used and
significant  estimates  made by  management,  as well as evaluating  the overall
financial  statement  presentation.   We  believe  that  our  audits  provide  a
reasonable basis for our opinion.

In our opinion,  the financial  statements  referred to above present fairly, in
all material respects, the financial position of Micropac Industries, Inc. as of
November 30, 2007 and 2006, and the results of its operations and its cash flows
for the years then ended in conformity with U.S. generally  accepted  accounting
principles.




KPMG LLP

Dallas, Texas,
February 8, 2008




















<PAGE>
<TABLE>
<CAPTION>
                            MICROPAC INDUSTRIES, INC.
                                 BALANCE SHEETS
                           NOVEMBER 30, 2007 AND 2006
                           --------------------------
                    (Dollars in thousands except share data)

                                 ASSETS                                             2007        2006
                                 ------                                           --------    --------
<S>                                                                               <C>         <C>

CURRENT ASSETS:
    Cash and cash equivalents                                                     $  4,394    $  2,558
    Short-term investments                                                           2,021       2,025
    Receivables, net of allowance for doubtful accounts
        of $89 for 2007 and 2006 respectively                                        2,415       2,048
    Inventories
        Raw materials and supplies                                                   1,588       1,924
        Work-in-process                                                              2,455       2,596
                                                                                  --------    --------
                  Total inventories                                                  4,043       4,520

    Deferred income taxes                                                              659         625
    Prepaid expenses and other assets                                                   69          77
                                                                                  --------    --------
                  Total current assets                                              13,601      11,853

PROPERTY, PLANT, AND EQUIPMENT, at cost:
    Land                                                                                80          80
    Buildings                                                                          498         498
    Facility improvements                                                              796         796
    Machinery and equipment                                                          6,119       5,925
    Furniture and fixtures                                                             584         507
                                                                                  --------    --------
        Total property, plant, and equipment                                         8,077       7,806
    Less- accumulated depreciation                                                  (6,843)     (6,591)
                                                                                  --------    --------
        Net property, plant, and equipment                                           1,234       1,215
                                                                                  --------    --------


                  Total assets                                                    $ 14,835    $ 13,068
                                                                                  ========    ========

                      LIABILITIES AND SHAREHOLDERS' EQUITY
                      ------------------------------------

CURRENT LIABILITIES:
    Accounts payable                                                              $    608    $    582
    Accrued compensation                                                               544         494
    Accrued professional fees                                                           51          51
    Income taxes payable                                                               235          28
    Property taxes                                                                      69          63
    Commissions payable                                                                 49          49
    Deferred revenue                                                                   323         243
    Other accrued liabilities                                                           25          25
                                                                                  --------    --------
                  Total current liabilities                                          1,904       1,535

DEFERRED INCOME TAXES                                                                  116          79
COMMITMENTS AND CONTINGENCIES (Note 5)
SHAREHOLDERS' EQUITY:
    Common stock, $.10 par value, authorized 10,000,000 shares 3,078,315 issued
         2,578,315 outstanding at November 30, 2007
         and November 30, 2006                                                         308         308
    Paid-in capital                                                                    885         885
    Treasury stock, at cost, 500,000 shares                                         (1,250)     (1,250)
    Retained earnings                                                               12,872      11,511
                                                                                  --------    --------
                  Total shareholders' equity                                        12,815      11,454
                                                                                  --------    --------

                  Total liabilities and shareholders' equity                      $ 14,835    $ 13,068
                                                                                  ========    ========
</TABLE>

                 See accompanying notes to financial statements.


<PAGE>
<TABLE>
<CAPTION>


                            MICROPAC INDUSTRIES, INC.
                              STATEMENTS OF INCOME
                 FOR THE YEARS ENDED NOVEMBER 30, 2007 AND 2006
                 ----------------------------------------------
                    (Dollars in thousands except share data)



                                                                2007          2006
                                                           -----------   -----------
<S>                                                        <C>           <C>

NET SALES                                                  $    18,524   $    17,156

COSTS AND EXPENSES:
Cost of sales                                                   12,610        11,403
Research and development                                           301           494
Selling, general, and administrative expenses                    3,278         3,152
                                                           -----------   -----------



                  Total costs and expenses                      16,189        15,049
                                                           -----------   -----------

OPERATING INCOME BEFORE INTEREST AND INCOME TAXES                2,335         2,107

Other income                                                        40            12
Interest income                                                    186           149
                                                           -----------   -----------

INCOME BEFORE INCOME TAXES                                       2,561         2,268

PROVISION (BENEFIT) FOR INCOME TAXES:
    Current                                                        939           855
    Deferred                                                         3            (6)
                                                           -----------   -----------

          Total provision for current and deferred taxes           942           849
                                                           -----------   -----------

NET INCOME                                                 $     1,619   $     1,419
                                                           ===========   ===========

BASIC AND DILUTED EARNINGS PER SHARE                       $      0.63   $      0.55
                                                           ===========   ===========

WEIGHTED AVERAGE NUMBER OF SHARES, basic and diluted         2,578,315     2,578,315
                                                           ===========   ===========


</TABLE>














                 See accompanying notes to financial statements.


<PAGE>
<TABLE>
<CAPTION>


                            MICROPAC INDUSTRIES, INC.
                       STATEMENTS OF SHAREHOLDERS' EQUITY
                 FOR THE YEARS ENDED NOVEMBER 30, 2007 AND 2006
                 ----------------------------------------------
                             (Dollars in thousands)



                                  Common        Paid-in        Treasury        Retained
                                   Stock        Capital         Stock          Earnings         Total
                                 --------       --------       --------        --------        --------
<S>                              <C>            <C>            <C>             <C>             <C>

BALANCE, November 30, 2005       $    308       $    885       $ (1,250)       $ 10,479        $ 10,422

    Dividend                         --             --             --              (387)           (387)
    Net income                       --             --             --             1,419           1,419
                                 --------       --------       --------        --------        --------

BALANCE, November 30, 2006            308            885         (1,250)         11,511          11,454

    Dividend                         --             --             --              (258)           (258)
    Net income                       --             --             --             1,619           1,619
                                 --------       --------       --------        --------        --------

BALANCE, November 30, 2007       $    308       $    885       $ (1,250)       $ 12,872        $ 12,815
                                 ========       ========       ========        ========        ========






</TABLE>


























                 See accompanying notes to financial statements.


<PAGE>
<TABLE>
<CAPTION>

                            MICROPAC INDUSTRIES, INC.
                            STATEMENTS OF CASH FLOWS
                 FOR THE YEARS ENDED NOVEMBER 30, 2007 AND 2006
                 ----------------------------------------------
                             (Dollars in thousands)

                                                                            2007       2006
                                                                           -------    -------
<S>                                                                        <C>        <C>

CASH FLOWS FROM OPERATING ACTIVITIES:
    Net income                                                             $ 1,619    $ 1,419
    Adjustments to reconcile net income to
        net cash provided by operating activities-
           Depreciation and amortization                                       262        253
           Deferred tax expense (benefit)                                        3         (6)
           Gain on sale of equipment                                            (1)      --
Changes in certain current assets and liabilities-
               (Increase) decrease in receivables, net                        (367)     1,009
               Decrease (increase) in inventories                              477       (977)
               Decrease (increase) in prepaid expenses and other assets          8         (1)
                 Increase (decrease) increase in accounts payable               26       (186)
               Increase (decrease) in accrued compensation                      50       (196)
               Increase (decrease) in income taxes payable                     207       (119)
               Increase (decrease) in all other accrued liabilities             86       (219)
                                                                           -------    -------

                  Net cash provided by operating activities                  2,370        977
                                                                           -------    -------

CASH FLOWS FROM INVESTING ACTIVITIES:
           Maturity of short term investment, net                                4        502
           Proceeds from sale of equipment                                       7       --
           Additions to property, plant, and equipment                        (287)      (256)
                                                                           -------    -------

                  Net cash provided by (used in) in investing activities      (276)       246
                                                                           -------    -------


CASH FLOWS FROM FINANCING ACTIVITIES:
           Dividends paid                                                     (258)      (387)
                                                                           -------    -------

                  Net cash used in financing activities                       (258)      (387)
                                                                           -------    -------

NET INCREASE IN CASH AND CASH EQUIVALENTS                                    1,836        836

CASH AND CASH EQUIVALENTS, beginning of year                                 2,558      1,722
                                                                           -------    -------

CASH AND CASH EQUIVALENTS, end of year                                     $ 4,394    $ 2,558
                                                                           =======    =======

SUPPLEMENTAL CASH FLOW DISCLOSURES:
        Cash paid for income taxes, net of refunds received                $   730    $   977
                                                                           =======    =======

</TABLE>




                 See accompanying notes to financial statements.





<PAGE>



                            MICROPAC INDUSTRIES, INC.
                          NOTES TO FINANCIAL STATEMENTS
                           NOVEMBER 30, 2007 AND 2006
                           --------------------------



1.   BUSINESS DESCRIPTION:
     ---------------------

Micropac Industries, Inc. (the "Company"), a Delaware corporation,  manufactures
and distributes various types of hybrid  microelectronic  circuits,  solid state
relays,  power  operational  amplifiers,   and  optoelectronic   components  and
assemblies.  The  Company's  products are used as components in a broad range of
military,  space and industrial systems,  including aircraft instrumentation and
navigation systems,  power supplies,  electronic  controls,  computers,  medical
devices, and high-temperature (200o C) products.


2.   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
     -------------------------------------------

Revenue Recognition
-------------------

Revenues are recorded as  deliveries  are made based upon contract  prices.  Any
losses  anticipated on fixed price  contracts are provided for currently.  Sales
are recorded net of sales returns, allowances and discounts.

Short-Term Investments
----------------------

Short-term  investments include certificates of deposits with maturities greater
than  90  days.  These  investments  are  reported  at  historical  cost,  which
approximates  fair  market  value as of November  30, 2007 and 2006.  All highly
liquid  investments  with  maturities of 90 days or less are  classified as cash
equivalents. All short-term investments are securities which the Company has the
ability and intent to hold to maturity.  All held-to maturity  securities mature
within one year.

Inventories
-----------

Inventories  are stated at lower of cost or market  value and include  material,
labor and  manufacturing  overhead.  All  inventories  are valued using the FIFO
(first-in,  first-out)  method of inventory  valuation.  The Company provides an
allowance for obsolete and overstocked inventory.

Income Taxes
------------

The Company  accounts  for income  taxes using the asset and  liability  method.
Under this method the Company  records  deferred  income taxes for the temporary
differences  between the financial  reporting  basis and the tax basis of assets
and  liabilities at enacted tax rates expected to be in effect when such amounts
are realized or settled.  The resulting  deferred tax liabilities and assets are
adjusted to reflect  changes in tax law or rates in the period that includes the
enactment date.

Property, Plant, and Equipment
------------------------------

Property, plant, and equipment are carried at cost, and depreciation is provided
using the  straight-line  method at rates  based  upon the  following  estimated
useful lives (in years) of the assets:

     Buildings................................................................15
     Facility improvements..................................................8-15
     Machinery and equipment................................................5-10
     Furniture and fixtures..................................................5-8

The Company assesses long-lived assets for impairment under Financial Accounting
Standards Board Statement of Financial  Accounting Standards No. 144, Accounting
for  the   Impairment  or  Disposal  of  Long-Lived   Assets.   When  events  or
circumstances  indicate  that  an  asset  may  be  impaired,  an  assessment  is
performed.  The estimated  future  undiscounted  cash flows  associated with the
asset are compared to the asset's net book value to determine if a write down to
market value or discounted cash flow value is required.

Repairs and maintenance are charged against income when incurred.  Improvements,
which extend the useful life of property, plant, and equipment are capitalized.

Research and Development Costs
------------------------------

Costs for the design and development of new products are expensed as incurred.


<PAGE>

Comprehensive Income
--------------------

Comprehensive income includes net income and other comprehensive income which is
generally  comprised  of  changes  in  the  fair  value  of   available-for-sale
marketable securities,  foreign currency translation adjustments and adjustments
to recognize additional minimum pension  liabilities.  For each period presented
in the accompanying statement of income, comprehensive income and net income are
the same amount.

Basic and Diluted Earnings Per Share
------------------------------------

Basic and  diluted  earnings  per share are  computed  based  upon the  weighted
average number of shares outstanding during the year. Diluted earnings per share
gives effect to all dilutive potential common shares.  During 2007 and 2006, the
Company had no dilutive potential common stock.

Use of Estimates
----------------

The preparation of financial statements in conformity with accounting principles
generally  accepted in the United States  requires  management to make estimates
and assumptions  that affect the reported  amounts of assets and liabilities and
disclosure of  contingent  assets and  liabilities  at the date of the financial
statements  and the  reported  amounts  of  revenues  and  expenses  during  the
reporting period. Actual results could differ from those estimates.


3.   NOTES PAYABLE TO BANKS:
     -----------------------

The Company currently has an existing line of credit with a Texas banking
institution. The line of credit agreement provides the Company with up to
$3,000,000 for normal operation of the Company. The interest rate on any
borrowings against this credit agreement is equal to the prime rate less 1/4%.
The line of credit requires the Company to maintain certain financial ratios,
including quick ratio of at least 1:1, maintain a tangible net worth of
$6,250,000 plus 75% of future net income, and maintain a total
liabilities-to-tangible-net-worth of less than 1.25:1. The Company is in
compliance with these covenants. The Company has not, to date, used any of the
available line of credit.

4.   RELATED PARTIES:
    ----------------

The  Company  leases a  building  from the  Company's  Chairman  of the Board of
Directors.  Since 1980, the Company has leased a 4,800 square-foot building from
Mr.  Nadolsky which is used primarily for  manufacturing.  The lease  originally
provided for a monthly  rental of $1,900 (an amount  based upon a January  1984,
independent  appraisal  of the  building's  value)  and was to have  expired  on
January 1, 1987.  Since 1987,  the Company has  extended  the term of this lease
from time to time.  The rental paid to Mr.  Nadolsky  pursuant to this lease was
$41,936 for the fiscal  year ended  November  30, 2007 and $45,000 in 2006.  The
lease was renewed for three (3) years, July 2007 to June 2010 at the same rental
rate provided for in the previous lease subject to increase based upon increases
in the Consumer Price Index.

Glast,  Phillips & Murray, P.C. serves as the Company's legal counsel. Mr. James
K. Murphey, a director and member of the Company's audit committee,  is a member
of Glast, Phillips & Murray, P.C.

Effective May 13, 2003, the Company's Board of Directors  approved the formation
of an audit committee  composed of the members of the Board. It is possible that
the  members of the audit  committee  may resign  from the  committee  if future
Securities  and  Exchange  Commission  rules  establish  a  criteria  that  such
individuals must be independent,  due to their  relationships  with the Company.
The Board of  Directors  held  five (5) board  meetings  during  the year  ended
November 30, 2007.  Directors  (excluding  Mark King) receive a fee of $1,500.00
for each meeting.  The Audit  Committee  held four (4) meetings  during the year
ended November 30, 2007.  Members  (excluding  Mark King) of the Audit Committee
received a fee of $750.00 for each meeting.


5.   PRODUCT WARRANTIES:
     -------------------

In November 2002, the FASB issued  Interpretation No. 45 (FIN 45),  "Guarantor's
Accounting  and  Disclosure  Requirements  for  Guarantees,  Including  Indirect
Guarantees of  Indebtedness of Others."  Currently,  the only applicable item of
FIN  45  relates  to the  impact  of  paragraph  14,  which  refers  to  product
warranties.

Because the Company does not have extended  warranties,  the exposure is limited
to product returns for defective products. In general, the Company warrants that
the products, when delivered,  will be free from defects in material workmanship
under  normal  use and  service.  The  obligations  are  limited  to  replacing,
repairing or giving credit for, at the option of the Company,  any products that
are returned within one year after the date of shipment.


<PAGE>

The Company reserves for potential warranty expense based on historical warranty
experience  claims.  While  management  considers  the process to be adequate to
effectively  quantify  its  exposure  to  warranty  claims  based on  historical
performance,  changes in warranty  claims on a specific or cumulative  basis may
require management to adjust its reserve for potential warranty costs.

Warranty expense to repair or replace products in 2007 and 2006, was $57,100 and
$81,900 respectively.


6.   LEASE COMMITMENTS:
     ------------------

Rent expenses for the years ended November 30, 2007 and 2006, was  approximately
$41,936 and $45,000  respectively  per year. The Company's  future minimum lease
payments under  non-cancellable  operating  leases  (including the related party
lease  described in note 4) for office and  manufacturing  space with  remaining
terms in excess of one year are approximately:

         2008                    $ 43,162
         2009                    $ 43,162
         2010                    $ 25,178




7.   EMPLOYEE BENEFITS:
     ------------------

The Company  sponsors an Employees'  Profit Sharing Plan and Trust (the "Plan").
Pursuant to section  401(k) of the Internal  Revenue Code, the Plan is available
to  substantially  all employees of the Company.  Employee  contributions to the
Plan are matched by the Company at amounts up to 6% of the participant's salary.
Contributions  made by the  Company  were  approximately  $204,000  in 2007  and
$194,000 in 2006. Employees become vested in Company  contributions at 20% after
two years, 40% after three years, 60% after four years, 80% after five years and
100% after six years.  If the employee  leaves the Company  prior to being fully
vested,  the unvested portion of the Company's  contributions  are forfeited and
such  forfeitures  are used to lower future Company  contributions.  The Company
does not offer other post retirement benefits to its employees at this time.

8.   NEW ACCOUNTING STANDARDS
     ------------------------


In September 2006, the FASB issued SFAS No. 157, "Fair Value Measurements".  The
objective of SFAS 157 is to increase consistency and comparability in fair value
measurements and to expand disclosures about fair value  measurements.  SFAS 157
defines  fair  value,  establishes  a  framework  for  measuring  fair  value in
generally accepted  accounting  principles,  and expands  disclosures about fair
value measurements.  SFAS 157 applies under other accounting pronouncements that
require or permit  fair value  measurements  and does not  require  any new fair
value measurements.  The provisions of SFAS No. 157 are effective for fair value
measurements  made in fiscal  years  beginning  after  November  15,  2007.  The
adoption of this  statement  is not  expected  to have a material  effect on the
Company's future reported financial position or results of operations.


In February 2007, the Financial  Accounting  Standards  Board (FASB) issued SFAS
No. 159, "The Fair Value Option for Financial Assets and Financial Liabilities -
Including an Amendment  of FASB  Statement  No.  115".  This  statement  permits
entities to choose to measure many financial instruments and certain other items
at fair  value.  Most of the  provisions  of SFAS No. 159 apply only to entities
that  elect the fair  value  option.  However,  the  amendment  to SFAS No.  115
"Accounting for Certain  Investments in Debt and Equity  Securities"  applies to
all entities with  available-for-sale  and trading  securities.  SFAS No. 159 is
effective as of the beginning of an entity's first fiscal year that begins after
November 15, 2007.  Early  adoption is permitted as of the beginning of a fiscal
year that begins on or before November 15, 2007, provided the entity also elects
to apply the provision of SFAS No. 157, "Fair Value Measurements".  The adoption
of this  statement  is not expected to have a material  effect on the  Company's
financial statements.

In June 2007,  the Emerging  Issues Task Force of the FASB issued EITF Issue No.
07-3,  Accounting for Nonrefundable Advance Payments for Goods or Services to be
Used in Future  Research  and  Development  Activities,  ("EITF  07-3") which is
effective for fiscal years beginning after December 15, 2007. EITF 07-3 requires
that  nonrefundable   advance  payments  for  future  research  and  development
activities  be deferred and  capitalized.  Such amounts will be recognized as an
expense as the goods are delivered or the related  services are  performed.  The
Company does not expect the  adoption of EITF 07-3 to have a material  impact on
the financial results of the Company.



<PAGE>
<TABLE>
<CAPTION>


9.   INCOME TAXES:
     -------------

The income tax provision consisted of the following for the years ended November
30:


                                                                 2007         2006
                                                               ---------    ---------
<S>                                                            <C>          <C>

                  Current Provision:
                      Federal                                  $ 809,000    $ 725,000
                      State                                      130,000      130,000
                                                               ---------    ---------
                                                                 939,000      855,000

                  Deferred expense (benefit)                       3,000       (6,000)
                                                               ---------    ---------

                               Total                           $ 942,000    $ 849,000
                                                               =========    =========


The provision for income taxes differs from that computed at
the federal statutory corporate tax rate as follows:

                                                                 2007         2006
                                                               ---------    ---------
         Tax at 34% statutory rate                             $ 871,000    $ 771,000
         State income taxes, net of federal benefit               84,000       85,000
         Permanent differences and other                         (13,000)      (7,000)
                                                               ---------    ---------

                  Income tax provision                         $ 942,000    $ 849,000
                                                               =========    =========


The components of deferred tax assets and liabilities were as follows:

                                              November 30, 2007      November 30, 2006
                                              -----------------      -----------------
         Current Deferred Taxes -
     Allowance for doubtful accounts             $ 33,000                 $ 33,000
     Inventory                                    414,000                  407,000
     Accrued liabilities and other                212,000                  185,000
                                                 --------                 --------
         Net current deferred tax asset          $659,000                 $625,000
                                                 --------                 --------

Non-current Deferred Taxes Liability
     Depreciation and other                      $116,000                 $ 79,000
                                                 --------                 --------

         Net deferred taxes                      $543,000                 $546,000
                                                 ========                 ========

</TABLE>

In assessing  the  realizability  of deferred tax assets,  management  considers
whether it is more likely than not that some  portion or all of the deferred tax
assets will not be realized.  The ultimate realization of deferred tax assets is
dependent  upon the  generation of future  taxable  income during the periods in
which those temporary  differences become deductible.  Management  considers the
scheduled reversal of deferred tax liabilities, projected future taxable income,
and tax-planning  strategies in making this assessment.  Based upon the level of
historical  taxable  income and  projections  for future taxable income over the
periods in which the deferred tax assets are deductible,  management believes it
is more  likely  than not that the Company  will  realize the  benefits of these
deductible  differences.  Accordingly no deferred tax asset valuation  allowance
was necessary as of November 30, 2007 or 2006


10.  SIGNIFICANT CUSTOMER INFORMATION:
     ---------------------------------

The Company's primary line of business relates to the design,  manufacture,  and
sale of hybrid microcircuits and optoelectronic components and assemblies. Sales
to primary contractors for defense and space related contracts accounted for 68%
of total sales in 2007 and 69% of total sales in 2006. No customer accounted for
10% of the Company's sales during 2007 and 2006.


11.  SHAREHOLDERS' EQUITY:
     ---------------------

On November 30, 2007, there were approximately 516 shareholders of record of the
Company's  common  stock.  The  stock  of the  Company  is  closely  held;  and,
therefore,  certain shareholders/board members have the ability to significantly
influence decisions.

On December  22,  2005,  the Board of  Directors  of Micropac  Industries,  Inc.
approved the payment of a $.15 per share dividend to all  shareholders of record
on February 3, 2006. The dividend  payment was paid to  shareholders on February
10, 2006.



<PAGE>

On December  22,  2006,  the Board of  Directors  of Micropac  Industries,  Inc.
approved the payment of a $.10 per share dividend to all  shareholders of record
on January 26, 2007. The dividend  payment was paid to  shareholders on February
9, 2007.

On March 1, 2001,  the Company's  shareholders  approved the 2001 Employee Stock
Option Plan (the "Stock  Plan").  As of November  30,  2006,  there were 500,000
options  available  to be  granted;  however,  no  options  had been  granted at
year-end.

12.  SUBSEQUENT EVENTS
     -----------------

On December  19,  2007,  the Board of  Directors  of Micropac  Industries,  Inc.
approved the payment of a $.10 per share dividend to all  shareholders of record
on January 25, 2008.  The dividend  payment will be paid to  shareholders  on or
about February 08, 2008.

On January 23, 2008, Mr. Nadolsky  announced his plan not to run for re-election
as a Director  and  Chairman  of the Board of  Micropac  Industries,  Inc.  (the
"Company") due to health  reasons.  Mr.  Nadolsky will continue to serve in such
positions  until the Company's  next Annual  Shareholder  Meeting  scheduled for
March 7, 2008.














<PAGE>




                             DIRECTORS AND OFFICERS
                             ----------------------
                                NOVEMBER 30, 2007


                                NICHOLAS NADOLSKY
                              Chairman of the Board
                            Micropac Industries, Inc

                                   CONNIE WOOD
                         Retired Chief Executive Officer
                            Micropac Industries, Inc.

                               HEINZ-WERNER HEMPEL
                             Chief Operating Officer
       Hanseatishe Waren Handelsgesellschaft MBH & Co. KG, Bremen, Germany


                                  H. KENT HEARN
                               Retired Stockbroker
                          Milkie-Ferguson, Dallas, Tx.


                                JAMES K. MURPHEY
                               Corporate Attorney
                     Glast, Phillips and Murray, Dallas, Tx.

                                    MARK KING
                             Chief Executive Officer
                            Micropac Industries, Inc.

                                 PATRICK CEFALU
                             Chief Financial Officer
                            Micropac Industries, Inc.











LEGAL COUNSEL                                   TRANSFER AGENT & REGISTRAR
Glast, Phillips and Murray                      Securities Transfer
Dallas, Tx                                      Frisco, Texas