<SUBMISSION>
<ACCESSION-NUMBER>0001157523-08-006135
<TYPE>8-K
<PUBLIC-DOCUMENT-COUNT>2
<PERIOD>20080731
<ITEMS>2.02
<ITEMS>9.01
<FILING-DATE>20080731
<DATE-OF-FILING-DATE-CHANGE>20080731
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>PC CONNECTION INC
<CIK>0001050377
<ASSIGNED-SIC>5961
<IRS-NUMBER>020513618
<STATE-OF-INCORPORATION>DE
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>8-K
<ACT>34
<FILE-NUMBER>000-23827
<FILM-NUMBER>08980392
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>ROUTE 101A
<STREET2>730 MILFORD RD
<CITY>MERRIMACK
<STATE>NH
<ZIP>03054
<PHONE>6036832000
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>ROUTE 101A
<STREET2>730 MILFORD RD
<CITY>MERRIMACK
<STATE>NH
<ZIP>03054
</MAIL-ADDRESS>
</FILER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>a5741419.htm
<DESCRIPTION>PC CONNECTION, INC. 8-K
<TEXT>
<html>
  <head>
    <title></title>
<!--Copyright 2008 Business Wire, a Berkshire Hathaway company.-->
<!--All rights reserved www.businesswire.com-->
  </head>
  <body style="font-size: 10pt; font-family: Times New Roman">
    <p style="text-align: center">
      <font style="font-family: Times New Roman; font-size: 12pt">UNITED STATES</font><font style="font-family: Times New Roman; font-size: 12pt"><br style="font-size: 12pt; font-family: Times New Roman"></font><font style="font-family: Times New Roman; font-size: 12pt">SECURITIES
      AND EXCHANGE COMMISSION</font><br><font style="font-family: Times New Roman; font-size: 12pt">WASHINGTON,
      D.C. 20549</font><br><font style="font-family: Times New Roman"><b>___________________________</b></font><br>
    </p>
    <p style="text-align: center">
      <font style="font-size: 12pt">FORM 8-K</font><br><br><font style="font-family: Times New Roman; font-size: 12pt">CURRENT
      REPORT</font><br><font style="font-family: Times New Roman; font-size: 12pt">PURSUANT
      TO SECTION 13 OR 15(d) OF</font><br><font style="font-family: Times New Roman; font-size: 12pt">THE
      SECURITIES EXCHANGE ACT OF 1934</font><br><br><font style="font-family: Times New Roman; font-size: 10pt">Date
      of Report (Date of earliest event reported): July 31, 2008</font><br><br>
    </p>
    <div style="text-align:center">
    <table cellspacing="0" style="margin-bottom: 10.0px; font-size: 10pt; width: 100%; font-family: Times New Roman; margin-left:auto;margin-right:auto">
      <tr>
        <td valign="top" style="border-bottom: solid black 1.0pt; padding-left: 0.0px; text-align: center">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <font style="font-size: 12pt">PC Connection, Inc.</font>
          </p>
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; text-align: center">
          <p style="margin-top: 0px; margin-bottom: 0px">
            (Exact name of registrant as specified in charter)
          </p>
        </td>
      </tr>
    </table>
    </div>
    <div style="text-align:center">
    <table cellspacing="0" style="margin-bottom: 10.0px; font-size: 10pt; width: 100%; font-family: Times New Roman; margin-left:auto;margin-right:auto">
      <tr>
        <td valign="bottom" style="border-bottom: solid black 1.0pt; width: 33%; padding-left: 0.0px; text-align: center">
          <p style="margin-top: 0px; margin-bottom: 0px">
            Delaware
          </p>
        </td>
        <td valign="bottom" style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-right: 0.0px; width: 34%; padding-left: 0.0px; text-align: center">
          <p style="margin-top: 0px; margin-bottom: 0px">
            0-23827
          </p>
        </td>
        <td valign="bottom" style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-right: 0.0px; width: 33%; padding-left: 0.0px; text-align: center">
          <p style="margin-top: 0px; margin-bottom: 0px">
            02-0513618
          </p>
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="width: 33%; padding-left: 0.0px; text-align: center">
          <p style="margin-top: 0px; margin-bottom: 0px">
            (State or other juris-
          </p>
          <p style="margin-top: 0px; margin-bottom: 0px">
            diction of incorporation)
          </p>
        </td>
        <td valign="bottom" style="width: 34%; padding-left: 0.0px; text-align: center">
          <p style="margin-top: 0px; margin-bottom: 0px">
            (Commission
          </p>
          <p style="margin-top: 0px; margin-bottom: 0px">
            File Number)
          </p>
        </td>
        <td valign="bottom" style="width: 33%; padding-left: 0.0px; text-align: center">
          <p style="margin-top: 0px; margin-bottom: 0px">
            (IRS Employer
          </p>
          <p style="margin-top: 0px; margin-bottom: 0px">
            Identification No.)
          </p>
        </td>
      </tr>
    </table>
    </div>
    <p>
      <br>
      <br>

    </p>
    <div style="text-align:center">
    <table cellspacing="0" style="margin-bottom: 10.0px; font-size: 10pt; width: 100%; font-family: Times New Roman; margin-left:auto;margin-right:auto">
      <tr>
        <td valign="bottom" style="border-bottom: solid black 1.0pt; width: 50%; padding-left: 0.0px; text-align: center">
          <p style="margin-top: 0px; margin-bottom: 0px">
            Rt. 101A, 730 Milford Road
          </p>
          <p style="margin-top: 0px; margin-bottom: 0px">
            Merrimack, NH
          </p>
        </td>
        <td valign="bottom" style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-right: 0.0px; width: 50%; padding-left: 0.0px; text-align: center">
          <p style="margin-top: 0px; margin-bottom: 0px">
            03054
          </p>
        </td>
      </tr>
      <tr>
        <td valign="bottom" style="width: 50%; padding-left: 0.0px; text-align: center">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <font style="font-family: Times New Roman; font-size: 10pt">(Address
            of principal executive offices)</font>
          </p>
        </td>
        <td valign="bottom" style="width: 50%; padding-left: 0.0px; text-align: center">
          <font style="font-family: Times New Roman; font-size: 10pt">(Zip
          Code)</font>
        </td>
      </tr>
    </table>
    </div>
    <p style="text-align: center">
      &#160;<br><font style="font-family: Times New Roman; font-size: 10pt">Registrant&#8217;s
      telephone number, including area code: </font>(603) 683-2000<br><br>
    </p>
    <div style="text-align:center">
    <table cellspacing="0" style="margin-bottom: 10.0px; font-size: 10pt; width: 100%; font-family: Times New Roman; margin-left:auto;margin-right:auto">
      <tr>
        <td valign="top" style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: center">
          <p style="margin-top: 0px; margin-bottom: 0px">
            N/A
          </p>
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; text-align: center">
          (Former name or former address, if changed since last report)
        </td>
      </tr>
    </table>
    </div>
    <p>
      <br>
      <font style="font-family: Arial Unicode MS; font-size: 10pt">&#8414;</font>
      <font style="font-family: Times New Roman; font-size: 10pt">Written
      communications pursuant to Rule 425 under the Securities Act (17 CFR
      230.425)</font>
    </p>
    <p>
      <font style="font-family: Arial Unicode MS; font-size: 10pt">&#8414;</font>
      <font style="font-family: Times New Roman; font-size: 10pt">Soliciting
      material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
      240.14a-12)</font>
    </p>
    <p>
      <font style="font-family: Arial Unicode MS; font-size: 10pt">&#8414;</font>
      <font style="font-family: Times New Roman; font-size: 10pt">Pre-commencement
      communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
      240.14d-2(b))</font>
    </p>
    <p>
      <font style="font-family: Arial Unicode MS; font-size: 10pt">&#8414;</font>
      <font style="font-family: Times New Roman; font-size: 10pt">Pre-commencement
      communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
      240.13e-4(c))</font>
    </p>
    <div style="margin-bottom: 10pt; width: 100%; text-indent: 0pt; margin-right: 0pt; margin-left: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>

    </p>
    <p>
      <font style="font-family: Times New Roman; font-size: 10pt"><b>Item
      2.02.&#160;&#160;Results of Operations and Financial Condition</b></font>
    </p>
    <p style="text-indent: 30.0px; text-align: left">
      On July 31, 2008, PC Connection, Inc. announced its financial results
      for the quarter ended June 30, 2008.&#160;&#160;The full text of the press release
      issued in connection with the announcement is furnished as Exhibit 99.1
      to this Current Report on Form 8-K.&#160;&#160;
    </p>
    <p style="text-indent: 30.0px; text-align: left">
      The information in this Form 8-K (including Exhibit 99.1) shall not be
      deemed &#8220;filed&#8221; for purposes of Section 18 of the Securities Exchange Act
      of 1934 (the &#8220;Exchange Act&#8221;) or otherwise subject to the liabilities of
      that section, nor shall it be deemed incorporated by reference in any
      filing under the Securities Act of 1933 or the Exchange Act, except as
      expressly set forth by specific reference in such a filing.
    </p>
    <p>
      <br>
      <b>Item 9.01.&#160;&#160;Financial Statements and Exhibits</b>
    </p>
    <p style="white-space: nowrap; margin-left: 30.0px">
      (d)&#160;&#160;&#160;&#160;&#160;Exhibits
    </p>
    <p style="margin-left: 60.0px; text-align: left">
      The following exhibit relating to Item 2.02 shall be deemed to be
      furnished, and not filed:
    </p>
    <p style="white-space: nowrap; margin-left: 60.0px">
      99.1&#160;&#160;&#160;&#160;&#160;&#160; Press Release issued by PC Connection, Inc. on July 31, 2008.
    </p>
    <p>
      <br>

    </p>
    <div style="margin-bottom: 10pt; width: 100%; text-indent: 0pt; margin-right: 0pt; margin-left: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>

    </p>
    <p style="text-align: center">
      <font style="font-family: Times New Roman; font-size: 10pt">SIGNATURE</font>
    </p>
    <p style="font-size: 10pt; text-indent: 30.0px; font-family: Times New Roman">
      <font style="font-family: Times New Roman; font-size: 10pt">Pursuant to
      the requirements of the Securities Exchange Act of 1934, the Registrant
      has duly caused this report to be signed on its behalf by the
      undersigned hereunto duly authorized.</font>
    </p>
    <div style="text-align:center">
    <table cellspacing="0" style="margin-bottom: 10.0px; font-size: 10pt; width: 100%; font-family: Times New Roman; margin-left:auto;margin-right:auto">
      <tr>
        <td valign="top" style="width: 6%; padding-left: 0.0px; text-align: left">
          <p style="margin-top: 0px; margin-bottom: 0px">
            Date:
          </p>
        </td>
        <td valign="top" colspan="2" style="padding-left: 0.0px; text-align: left">
          <p style="margin-top: 0px; margin-bottom: 0px">
            July 31, 2008
          </p>
        </td>
        <td valign="top" colspan="2" style="padding-left: 0.0px; text-align: left">
          <p style="margin-top: 0px; margin-bottom: 0px">
            PC CONNECTION, INC.
          </p>
        </td>
      </tr>
      <tr>
        <td style="width: 6%">

        </td>
        <td colspan="2">

        </td>
        <td valign="top" colspan="2" style="padding-left: 0.0px; text-align: left">
          <p style="margin-top: 0px; margin-bottom: 0px">
            &#160;
          </p>
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-bottom: 2.0px; width: 6%; padding-left: 0.0px; text-align: left">
          <p style="margin-top: 0px; margin-bottom: 0px">
            &#160;
          </p>
        </td>
        <td valign="top" style="padding-bottom: 2.0px; width: 43%; padding-left: 0.0px; text-align: left">
          <p style="margin-top: 0px; margin-bottom: 0px">
            &#160;
          </p>
        </td>
        <td style="width: 1%">

        </td>
        <td valign="top" style="padding-bottom: 2.0px; width: 4%; padding-left: 0.0px; text-align: left">
          By:
        </td>
        <td valign="top" style="border-bottom: solid black 1.0pt; width: 46%; padding-left: 0.0px; text-align: left">
          <p style="margin-top: 0px; margin-bottom: 0px">
            /s/ Jack Ferguson
          </p>
        </td>
      </tr>
      <tr>
        <td style="width: 6%">

        </td>
        <td colspan="2">

        </td>
        <td style="width: 4%">

        </td>
        <td valign="top" style="width: 46%; padding-left: 0.0px; text-align: left">
          <p style="margin-top: 0px; margin-bottom: 0px">
            Jack Ferguson
          </p>
        </td>
      </tr>
      <tr>
        <td style="width: 6%">

        </td>
        <td colspan="2">

        </td>
        <td style="width: 4%">

        </td>
        <td valign="top" style="width: 46%; padding-left: 0.0px; text-align: left">
          <p style="margin-top: 0px; margin-bottom: 0px">
            Executive Vice President, Treasurer, and
          </p>
          <p style="margin-top: 0px; margin-bottom: 0px">
            Chief Financial Officer
          </p>
        </td>
      </tr>
    </table>
    </div>
    <div style="margin-bottom: 10pt; width: 100%; text-indent: 0pt; margin-right: 0pt; margin-left: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p style="text-align: center">
      EXHIBIT INDEX
    </p>
    <div style="text-align:left">
    <table cellspacing="0" style="margin-bottom: 10.0px; font-size: 10pt; width: 100%; font-family: Times New Roman">
      <tr>
        <td valign="top" style="width: 20%; padding-left: 0.0px; text-align: left">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <u>Exhibit No.</u>
          </p>
        </td>
        <td valign="top" style="width: 80%; padding-left: 0.0px; text-align: left">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <u>Description</u>
          </p>
        </td>
      </tr>
      <tr>
        <td style="width: 20%">

        </td>
        <td style="width: 80%">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="white-space: nowrap; padding-right: 0.0px; width: 20%; padding-left: 0.0px; text-align: left">
          99.1
        </td>
        <td valign="top" style="width: 80%; padding-left: 0.0px; text-align: left">
          Press release issued by PC Connection, Inc. on July 31, 2008.
        </td>
      </tr>
    </table>
    </div>
    <p>

    </p>
    <p>

    </p>
  </body>
</html>
<!--<!DOCTYPE html
     PUBLIC "-//W3C//DTD XHTML 1.0 Strict//EN"
     "http://www.w3.org/TR/xhtml1/DTD/xhtml1-strict.dtd">-->
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>a5741419ex991.htm
<DESCRIPTION>EXHIBIT 99.1
<TEXT>
<html>
  <head>
    <title></title>
<!--Copyright 2008 Business Wire, a Berkshire Hathaway company.-->
<!--All rights reserved www.businesswire.com-->
  </head>
  <body style="font-size: 8pt; font-family: Times New Roman">
    <p style="text-align: right">
      <b>Exhibit 99.1</b>
    </p>
    <p style="text-align: center">
      <font style="font-family: Times New Roman; font-size: 12pt"><b>PC
      Connection, Inc. Reports Second Quarter Results</b></font>
    </p>
    <p>

    </p>
    <p>
      <u><font style="font-family: Times New Roman; font-size: 12pt"><b>SECOND
      QUARTER HIGHLIGHTS</b></font></u><b><font style="font-family: Times New Roman; font-size: 12pt">:</font></b>
    </p>
    <p>

    </p>
    <ul>
      <li style="margin-bottom: 10.0px">
        <u><font style="font-family: Times New Roman; font-size: 12pt"><b>Q2
        net sales: $449.4 million, up 2% year over year</b></font></u>
      </li>
      <li style="margin-bottom: 10.0px">
        <u><font style="font-family: Times New Roman; font-size: 12pt"><b>Gross
        margin: 12.65%, up from 12.25% last year</b></font></u>
      </li>
      <li style="margin-bottom: 10.0px">
        <u><font style="font-family: Times New Roman; font-size: 12pt"><b>Net
        income: $5.1 million</b></font></u>
      </li>
      <li style="margin-bottom: 10.0px">
        <u><font style="font-family: Times New Roman; font-size: 12pt"><b>Diluted
        earnings per share: $.19 per share</b></font></u>
      </li>
    </ul>
    <p>
      MERRIMACK, N.H.--(BUSINESS WIRE)--PC Connection, Inc. <b>(NASDAQ: PCCC)</b>,
      a leading direct marketer of information technology (IT) products and
      services, today announced results for the quarter ended June 30, 2008.
      Net sales for the three months ended June 30, 2008 increased by $8.3
      million, or 1.9%, to $449.4 million from $441.1 million for the three
      months ended June 30, 2007. Net income for the quarter was $5.1 million,
      or $.19 per share, compared to $5.8 million, or $.21 per share, for the
      corresponding prior year quarter. Management believes the current
      economic environment affected the level of demand for IT solutions
      during the quarter.
    </p>
    <p>
      Net sales for the six months ended June&#160;30, 2008 increased by $33.8
      million, or 4.0%, to $873.1&#160;million from $839.3&#160;million for the six
      months ended June&#160;30, 2007. Net income for the six months ended June&#160;30,
      2008 was $9.9&#160;million, or $.37 per share, compared to $9.1&#160;million, or
      $.34 per share, for the six months ended June&#160;30, 2007.
    </p>
    <p>
      <i><b>Quarterly Sales Growth by Business Segment</b>:</i>
    </p>
    <ul>
      <li style="margin-bottom: 10.0px">
        Net sales for the small- and medium-sized business (SMB) segment
        increased by 1.9% to $236.4 million compared to the second quarter of
        2007. Corporate sales within the segment grew year over year, as sales
        to consumers continued to decline, reflecting our focus on business
        customers.
      </li>
      <li style="margin-bottom: 10.0px">
        Net sales for MoreDirect, Inc., the Company&#8217;s Large Account segment,
        decreased by 4.7% to $127.4 million compared to the second quarter of
        2007. MoreDirect experienced decreased revenues from its larger
        enterprise customers, but partly offset these during the quarter with
        the addition of new accounts.
      </li>
      <li style="margin-bottom: 10.0px">
        Net sales to GovConnection, Inc., the Company&#8217;s Public Sector segment,
        increased by $10.1 million, or 13.3%, to $85.7 million compared to the
        second quarter of 2007. Strong federal government contract sales and
        larger education sales contributed to this double-digit increase.
      </li>
    </ul>
    <div style="margin-bottom: 10pt; width: 100%; margin-right: 0pt; text-indent: 0pt; margin-left: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>
      <i><b>Quarterly Sales Growth by Product Mix</b>:</i>
    </p>
    <ul>
      <li style="margin-bottom: 10.0px">
        Net/Com Products sales increased 43% year over year, accounting for
        11% of net sales in the second quarter of 2008 compared to 8% of net
        sales for the corresponding period a year ago. We experienced double
        digit year-over-year growth in all three segments, and with several
        vendors.
      </li>
      <li style="margin-bottom: 10.0px">
        Video, Imaging and Sound sales increased 9% year over year, accounting
        for 14% of net sales in the second quarter of 2008 compared to 13% for
        the corresponding prior year quarter. Strong video product sales
        continued to drive the majority of this revenue growth.
      </li>
      <li style="margin-bottom: 10.0px">
        Sales of Notebooks and PDAs decreased 3% year over year, accounting
        for 16% of net sales in both second quarters of 2008 and 2007.
      </li>
    </ul>
    <p>
      Gross profit dollars increased by $2.8 million, or 5.2%, in the second
      quarter of 2008 from the corresponding period a year ago due to improved
      rate and volume in 2008. Gross profit margin, as a percentage of net
      sales, increased 40 basis-points to 12.6% in the second quarter of 2008
      compared to the second quarter of 2007, primarily due to increased
      vendor allowances in 2008.
    </p>
    <p>
      Overall annualized sales productivity was unchanged in the second
      quarter of 2008 compared to the second quarter of 2007. Sales
      productivity in our Large Account segment increased 5% in the second
      quarter of 2008 compared to the second quarter of 2007. Sales
      productivity in our Public Sector segment increased 9% year over year
      primarily due to increased Federal contract and education sales in 2008.
      For our SMB segment, productivity decreased 3% year over year due to the
      addition of new sales representatives. On a consolidated basis, the
      total number of sales representatives was 667 at June 30, 2008, compared
      to 652 at June 30, 2007.
    </p>
    <p>
      Total selling, general and administrative expenses for the quarter
      increased year over year by $3.2&#160;million, or 7.0%, and increased as a
      percentage of net sales to 10.7% for the second quarter of 2008 from
      10.3% for the second quarter of 2007. The year-over-year dollar and rate
      increase was primarily attributable to the incremental variable
      compensation associated with higher gross profits, additional investment
      in sales and promotion costs in 2008, as well as the weaker demand
      environment.
    </p>
    <p>
      The Company believes revenue for the third quarter of 2008 will be in
      the same range as the third quarter of 2007, reflecting the current
      economic environment. &#8220;We are continuing to move our business forward
      and are taking a number of actions to bring costs in line with expected
      sales levels,&#8221; said Patricia Gallup, Chairman and Chief Executive
      Officer. &#8220;We believe that our talented and experienced team will be
      successful in executing our plans, and that we will continue to build
      long-term shareholder value.&#8221;
    </p>
    <p>
      <b>About PC Connection, Inc.</b>
    </p>
    <p>
      PC Connection, Inc., a Fortune 1000 company, has three sales
      subsidiaries: PC Connection Sales Corporation, MoreDirect, Inc., and
      GovConnection, Inc., headquartered in Merrimack, NH, Boca Raton, FL, and
      Rockville, MD, respectively. All three companies can deliver
      custom-configured computer systems overnight. Investors and media can
      find more information about PC Connection, Inc. at <u>http://ir.pcconnection.com</u>.
    </p>
    <p>
      PC Connection Sales Corporation (1-800-800-5555), the original business
      of PC Connection, Inc. serving the small- and medium-sized business
      sector (SMB), is a rapid-response provider of information technology
      (IT) products and services. It offers more than 150,000 brand-name
      products through its staff of technically trained sales account managers
      and catalog telesales representatives, catalogs, and publications, and
      its website at <u>www.pcconnection.com</u>. The subsidiary serves the
      Apple/Macintosh community through its MacConnection division
      (1-800-800-2222), which also publishes specialized catalogs and is
      online at <u>www.macconnection.com</u>.
    </p>
    <div style="margin-bottom: 10pt; width: 100%; text-indent: 0pt; margin-right: 0pt; margin-left: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <p>
      MoreDirect, Inc. (561-237-3300), <u>www.moredirect.com</u>, provides
      corporate technology buyers with a comprehensive web-based e-procurement
      solution and in-depth IT supply-chain expertise, serving as a one-stop
      source by aggregating more than 300,000 products from the inventories of
      leading IT wholesale distributors and manufacturers. MoreDirect&#8217;s TRAXX&#8482;
      system is a seamless end-to-end interface that empowers clients to
      electronically source, evaluate, compare prices, and track related
      technology product purchases in real-time.
    </p>
    <p>
      GovConnection, Inc. (1-800-800-0019) is a provider of IT products and
      services to federal, state, and local government agencies and
      educational institutions through specialized account managers, catalogs,
      and publications, and online at <u>www.govconnection.com</u>.
    </p>
    <p>
      pccc-g
    </p>
    <p>
      &#8220;Safe Harbor&#8221; Statement Under the Private Securities Litigation Reform
      Act of 1995: This release contains forward-looking statements that are
      subject to risks and uncertainties, including, but not limited to, the
      impact of changes in market demand and the overall level of economic
      activity, or in the level of business investment in information
      technology products, competitive products and pricing, product
      availability and market acceptance, new products, fluctuations in
      operating results, and the ability of the Company to hire and retain
      essential personnel, and other risks that could cause actual results to
      differ materially from these detailed under the caption &#8220;Risk Factors&#8221;
      in the Company&#8217;s Quarterly Report on Form 10-Q filed with the Securities
      and Exchange Commission for the quarter ended March 31, 2008. More
      specifically, the statements in this release concerning the Company&#8217;s
      outlook for 2008 and the statements concerning the Company&#8217;s gross
      margin percentage, productivity, and selling and administrative costs
      and other statements of a non-historical basis (including statements
      regarding implementing strategies for future growth and the ability of
      the Company to improve sales productivity) are forward-looking
      statements that involve certain risks and uncertainties. Such risks and
      uncertainties include the ability to realize market demand for and
      competitive pricing pressures on the products and services marketed by
      the Company, the continued acceptance of the Company's distribution
      channel by vendors and customers, continuation of key vendor and
      customer relationships and support programs and the ability of the
      Company to hire and retain qualified sales representatives and other
      essential personnel. The Company assumes no obligation to update the
      information in this press release or revise any forward-looking
      statements, whether as a result of any new information, future events,
      or otherwise.
    </p>
    <div style="margin-bottom: 10pt; width: 100%; text-indent: 0pt; margin-right: 0pt; margin-left: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <div style="text-align:left">
    <table cellspacing="0" style="margin-bottom: 10.0px; font-size: 8pt; width: 100%; font-family: Times New Roman">
      <tr>
        <td valign="top" colspan="18" style="padding-left: 0.0px; text-align: left">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <u><b>PC Connection, Inc. -- Second Quarter Earnings -- 07/31/08</b></u>
          </p>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>
          &#160;
        </td>
        <td colspan="3">

        </td>
        <td>
          &#160;
        </td>
        <td colspan="2">

        </td>
        <td>
          &#160;
        </td>
        <td colspan="3">

        </td>
        <td>
          &#160;
        </td>
        <td colspan="2">

        </td>
        <td>
          &#160;
        </td>
        <td colspan="2">

        </td>
      </tr>
      <tr>
        <td valign="top" colspan="18" style="border-bottom: solid black 1.0pt; padding-left: 0.0px; text-align: left">
          <b>CONSOLIDATED SELECTED FINANCIAL HIGHLIGHTS</b>
        </td>
      </tr>
      <tr>
        <td valign="top" style="border-bottom: solid black 1.0pt; padding-left: 0.0px; text-align: left">
          <b>At or for the Three Months Ended June 30,</b>
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" colspan="5" style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: center">
          <b>2008</b>
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td valign="bottom" colspan="5" style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: center">
          <b>2007</b>
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td colspan="2" style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="border-bottom: solid black 1.0pt; padding-left: 0.0px; text-align: left">
          <i>(Dollars and shares in thousands, except operating data,
          price/earnings ratio, and per share data)</i>
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td colspan="3" style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" colspan="2" style="border-bottom: solid black 1.0pt; padding-left: 0.0px; text-align: center">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>% of</b><br><b>Net</b><br><b>Sales</b>
          </p>
        </td>
        <td>

        </td>
        <td colspan="3" style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" colspan="2" style="border-bottom: solid black 1.0pt; padding-left: 0.0px; text-align: center">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>% of</b><br><b>Net</b><br><b>Sales</b>
          </p>
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: center">
          <b>%</b><br><b>Change</b>
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; text-align: left">
          <b>Operating Data:</b>
        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 10.0px; text-align: left">
          Net sales
        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          $
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          449,399
        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          $
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          441,122
        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          2
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: left">
          %
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 10.0px; text-align: left">
          Diluted earnings per share
        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          $
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          .19
        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          $
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          .21
        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          <p style="margin-top: 0px; margin-bottom: 0px">
            (10
          </p>
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: left">
          <p style="margin-top: 0px; margin-bottom: 0px">
            %)
          </p>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 10.0px; text-align: left">
          Gross profit margin
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          12.6
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: left">
          %
        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          12.3
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: left">
          %
        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 10.0px; text-align: left">
          Operating margin
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          1.9
        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          2.0
        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 10.0px; text-align: left">
          Return on equity <sup>(1)</sup>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          8.8
        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          11.2
        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 10.0px; text-align: left">
          Catalogs distributed
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          3,060,000
        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          3,404,000
        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          (10
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: left">
          %)
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 10.0px; text-align: left">
          Orders entered <sup>(2)</sup>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          361,500
        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          365,200
        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          (1
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: left">
          %)
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 10.0px; text-align: left">
          Average order size <sup>(2)</sup>
        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          $
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          1,462
        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          $
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          1,396
        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          5
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: left">
          %
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 10.0px; text-align: left">
          Inventory turns <sup>(1)</sup>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          24
        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          22
        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 10.0px; text-align: left">
          Days sales outstanding
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          45
        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          42
        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; text-align: left">
          <b>Product Mix:</b>
        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 10.0px; text-align: left">
          Notebooks &amp; PDAs
        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          $
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          69,939
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          16
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: left">
          %
        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          $
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          72,374
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          16
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: left">
          %
        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          (3
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: left">
          %)
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 10.0px; text-align: left">
          Video, Imaging &amp; Sound
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          64,521
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          14
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          59,146
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          13
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          9
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 10.0px; text-align: left">
          Desktops/Servers
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          62,035
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          14
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          62,479
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          14
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          (1
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: left">
          )
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 10.0px; text-align: left">
          Software
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          57,010
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          13
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          56,205
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          13
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          1
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 10.0px; text-align: left">
          Net/Com Products
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          51,046
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          11
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          35,630
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          8
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          43
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 10.0px; text-align: left">
          Printers &amp; Printer Supplies
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          40,305
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          9
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          41,743
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          10
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          (3
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: left">
          )
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 10.0px; text-align: left">
          Storage Devices
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          36,583
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          8
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          39,649
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          9
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          (8
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: left">
          )
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 10.0px; text-align: left">
          Memory &amp; System Enhancements
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          17,887
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          4
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          24,032
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          6
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          (26
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: left">
          )
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-bottom: 2.0px; padding-left: 10.0px; text-align: left">
          Accessories/Other
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          50,073
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          11
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          49,864
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          11
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-bottom: 2.0px; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          -
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-bottom: 4.0px; padding-left: 10.0px; text-align: left">
          Total
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom: double black 2.25pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          $
        </td>
        <td valign="bottom" style="border-bottom: double black 2.25pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          449,399
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom: double black 2.25pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          100
        </td>
        <td valign="bottom" style="border-bottom: double black 2.25pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: left">
          %
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom: double black 2.25pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          $
        </td>
        <td valign="bottom" style="border-bottom: double black 2.25pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          441,122
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom: double black 2.25pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          100
        </td>
        <td valign="bottom" style="border-bottom: double black 2.25pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: left">
          %
        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-bottom: 4.0px; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          2
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-bottom: 4.0px; padding-right: 0.0px; padding-left: 0.0px; text-align: left">
          %
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" colspan="18" style="padding-left: 0.0px; text-align: left">
          <b>Net Sales of Enterprise Server and Networking Products (included
          in the above Product Mix):</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom: double black 2.25pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          $
        </td>
        <td valign="bottom" style="border-bottom: double black 2.25pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          163,228
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-bottom: 4.0px; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          36
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-bottom: 4.0px; padding-right: 0.0px; padding-left: 0.0px; text-align: left">
          %
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom: double black 2.25pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          $
        </td>
        <td valign="bottom" style="border-bottom: double black 2.25pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          144,552
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-bottom: 4.0px; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          33
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-bottom: 4.0px; padding-right: 0.0px; padding-left: 0.0px; text-align: left">
          %
        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-bottom: 4.0px; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          13
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-bottom: 4.0px; padding-right: 0.0px; padding-left: 0.0px; text-align: left">
          %
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 10.0px; text-align: left">
          <b>Stock Performance Indicators:</b>
        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 10.0px; text-align: left">
          Actual shares outstanding <sup>(4)</sup>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          27,057
        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          26,824
        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 10.0px; text-align: left">
          Total book value per share
        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          $
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          8.72
        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          $
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          7.80
        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 10.0px; text-align: left">
          Tangible book value per share
        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          $
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          6.50
        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          $
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          5.54
        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 10.0px; text-align: left">
          Closing price
        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          $
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          9.31
        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          $
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          13.24
        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 10.0px; text-align: left">
          Market capitalization
        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          $
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          251,901
        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          $
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          355,150
        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 10.0px; text-align: left">
          Trailing price/earnings ratio <sup>(3)</sup>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          11
        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          19
        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" colspan="18" style="padding-left: 0.0px; text-align: left">
          (1) Annualized
        </td>
      </tr>
      <tr>
        <td valign="top" colspan="18" style="padding-left: 0.0px; text-align: left">
          (2) Does not reflect cancellations or returns
        </td>
      </tr>
      <tr>
        <td valign="top" colspan="18" style="padding-left: 0.0px; text-align: left">
          (3) Earnings is based on the last four quarters
        </td>
      </tr>
      <tr>
        <td valign="top" colspan="18" style="padding-left: 0.0px; text-align: left">
          (4) Includes outstanding nonvested stock awards
        </td>
      </tr>
      <tr>
        <td colspan="18">
          &#160;
        </td>
      </tr>
    </table>
    </div>
    <div style="text-align:left">
    <table cellspacing="0" style="margin-bottom: 10.0px; font-size: 8pt; width: 100%; font-family: Times New Roman">
      <tr>
        <td valign="top" colspan="13" style="border-bottom: solid black 1.0pt; padding-left: 0.0px; text-align: left">
          <b>SELECTED SEGMENT INFORMATION</b>
        </td>
      </tr>
      <tr>
        <td valign="top" style="border-bottom: solid black 1.0pt; padding-left: 0.0px; text-align: left">
          <b>For the Three Months Ended June 30,</b>
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" colspan="4" style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: center">
          <b>2008</b>
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>
          &#160;
        </td>
        <td valign="bottom" colspan="4" style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: center">
          <b>2007</b>
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="border-bottom: solid black 1.0pt; padding-left: 0.0px; text-align: left">
          <i>(Dollars in thousands)</i>
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" colspan="2" style="border-bottom: solid black 1.0pt; text-align: center">
          <b>Net</b><br><b>Sales</b>
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" colspan="2" style="border-bottom: solid black 1.0pt; padding-left: 0.0px; text-align: center">
          <b>Gross</b><br><b>Margin (%)</b>
        </td>
        <td>

        </td>
        <td valign="bottom" colspan="2" style="border-bottom: solid black 1.0pt; padding-left: 0.0px; text-align: center">
          <b>Net</b><br><b>Sales</b>
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" colspan="2" style="border-bottom: solid black 1.0pt; padding-left: 0.0px; text-align: center">
          <b>Gross</b><br><b>Margin (%)</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>
          &#160;
        </td>
        <td colspan="2">

        </td>
        <td>
          &#160;
        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>
          &#160;
        </td>
        <td colspan="2">

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; text-align: left">
          PC Connection Sales Corporation (SMB)
        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          $
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          236,375
        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          14.0
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: left">
          %
        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          $
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          231,935
        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          13.3
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: left">
          %
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; text-align: left">
          MoreDirect (Large Account)
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          127,368
        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          11.8
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          133,602
        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          11.3
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-bottom: 2.0px; padding-left: 0.0px; text-align: left">
          GovConnection (Public Sector)
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          85,656
        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-bottom: 2.0px; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          10.0
        </td>
        <td>

        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          75,585
        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-bottom: 2.0px; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          10.8
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-bottom: 4.0px; padding-left: 0.0px; text-align: left">
          Total
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom: double black 2.25pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          $
        </td>
        <td valign="bottom" style="border-bottom: double black 2.25pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          449,399
        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-bottom: 4.0px; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          12.6
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-bottom: 4.0px; padding-right: 0.0px; padding-left: 0.0px; text-align: left">
          %
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom: double black 2.25pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          $
        </td>
        <td valign="bottom" style="border-bottom: double black 2.25pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          441,122
        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-bottom: 4.0px; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          12.3
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-bottom: 4.0px; padding-right: 0.0px; padding-left: 0.0px; text-align: left">
          %
        </td>
      </tr>
    </table>
    </div>
    <div style="margin-bottom: 10pt; width: 100%; text-indent: 0pt; margin-right: 0pt; margin-left: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <div style="text-align:left">
    <table cellspacing="0" style="margin-bottom: 10.0px; font-size: 8pt; width: 100%; font-family: Times New Roman">
      <tr>
        <td valign="top" colspan="15" style="border-bottom: solid black 1.0pt; padding-left: 0.0px; text-align: left">
          <b>CONSOLIDATED INCOME STATEMENTS</b>
        </td>
      </tr>
      <tr>
        <td valign="top" style="border-bottom: solid black 1.0pt; padding-left: 0.0px; text-align: left">
          <b>Three Months Ended June 30,</b>
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" colspan="5" style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: center">
          <b>2008</b>
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" colspan="5" style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: center">
          <b>2007</b>
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="border-bottom: solid black 1.0pt; padding-left: 0.0px; text-align: left">
          <i>(amounts in thousands, except per share data)</i>
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" colspan="3" style="border-bottom: solid black 1.0pt; padding-left: 0.0px; text-align: center">
          <b>Amount</b>
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" colspan="2" style="border-bottom: solid black 1.0pt; padding-left: 0.0px; text-align: left">
          <b>% of Net Sales</b>
        </td>
        <td>
          &#160;
        </td>
        <td valign="bottom" colspan="3" style="border-bottom: solid black 1.0pt; padding-left: 0.0px; text-align: center">
          <b>Amount</b>
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" colspan="2" style="border-bottom: solid black 1.0pt; padding-left: 0.0px; text-align: left">
          <b>% of Net Sales</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>
          &#160;
        </td>
        <td colspan="3">

        </td>
        <td>
          &#160;
        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>
          &#160;
        </td>
        <td colspan="2">

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; text-align: left">
          Net sales
        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          $
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          449,399
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          100.0
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: left">
          %
        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          $
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          441,122
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          100.0
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: left">
          %
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-bottom: 2.0px; padding-left: 0.0px; text-align: left">
          Cost of sales
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          392,559
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          87.4
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          387,082
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          87.7
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 20.0px; text-align: left">
          <b>Gross Profit</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          56,840
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          12.6
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          54,040
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          12.3
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-bottom: 2.0px; padding-left: 0.0px; text-align: left">
          Selling, general and administrative expenses
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          48,173
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          10.7
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          45,005
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          10.3
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 20.0px; text-align: left">
          <b>Income From Operations</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          8,667
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          1.9
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          9,035
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          2.0
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; text-align: left">
          Interest expense
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          (199
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: left">
          )
        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          -
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          (242
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: left">
          )
        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          (0.1
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: left">
          )
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; text-align: left">
          Other, net
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          205
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          -
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          260
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          0.1
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-bottom: 2.0px; padding-left: 0.0px; text-align: left">
          Income tax provision
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          (3,586
        </td>
        <td valign="bottom" style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: left">
          )
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          (0.8
        </td>
        <td valign="bottom" style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: left">
          )
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          (3,300
        </td>
        <td valign="bottom" style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: left">
          )
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          (0.7
        </td>
        <td valign="bottom" style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: left">
          )
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-bottom: 4.0px; padding-left: 20.0px; text-align: left">
          <b>Net Income</b>
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom: double black 2.25pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          $
        </td>
        <td valign="bottom" style="border-bottom: double black 2.25pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          5,087
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom: double black 2.25pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          1.1
        </td>
        <td valign="bottom" style="border-bottom: double black 2.25pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: left">
          %
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom: double black 2.25pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          $
        </td>
        <td valign="bottom" style="border-bottom: double black 2.25pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          5,753
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom: double black 2.25pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          1.3
        </td>
        <td valign="bottom" style="border-bottom: double black 2.25pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: left">
          %
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; text-align: left">
          Weighted average common shares outstanding:
        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-bottom: 4.0px; padding-left: 20.0px; text-align: left">
          Basic
        </td>
        <td>

        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom: double black 2.25pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          26,807
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom: double black 2.25pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          26,798
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-bottom: 4.0px; padding-left: 20.0px; text-align: left">
          Diluted
        </td>
        <td>

        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom: double black 2.25pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          26,930
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom: double black 2.25pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          26,995
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; text-align: left">
          Earnings per common share:
        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-bottom: 4.0px; padding-left: 20.0px; text-align: left">
          Basic
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom: double black 2.25pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          $
        </td>
        <td valign="bottom" style="border-bottom: double black 2.25pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          0.19
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom: double black 2.25pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          $
        </td>
        <td valign="bottom" style="border-bottom: double black 2.25pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          0.21
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-bottom: 4.0px; padding-left: 20.0px; text-align: left">
          Diluted
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom: double black 2.25pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          $
        </td>
        <td valign="bottom" style="border-bottom: double black 2.25pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          0.19
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom: double black 2.25pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          $
        </td>
        <td valign="bottom" style="border-bottom: double black 2.25pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          0.21
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
    </table>
    </div>
    <div style="text-align:left">
    <table cellspacing="0" style="margin-bottom: 10.0px; font-size: 8pt; width: 100%; font-family: Times New Roman">
      <tr>
        <td valign="top" colspan="15" style="border-bottom: solid black 1.0pt; padding-left: 0.0px; text-align: left">
          <b>CONSOLIDATED INCOME STATEMENTS</b>
        </td>
      </tr>
      <tr>
        <td valign="top" style="border-bottom: solid black 1.0pt; padding-left: 0.0px; text-align: left">
          <b>Six Months Ended June 30,</b>
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" colspan="5" style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: center">
          <b>2008</b>
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="top" style="padding-bottom: 2.0px; padding-left: 0.0px; text-align: left">
          <p style="margin-top: 0px; margin-bottom: 0px">
            &#160;
          </p>
        </td>
        <td valign="bottom" colspan="5" style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: center">
          <b>2007</b>
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="border-bottom: solid black 1.0pt; padding-left: 0.0px; text-align: left">
          <i>(amounts in thousands, except per share data)</i>
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" colspan="3" style="border-bottom: solid black 1.0pt; padding-left: 0.0px; text-align: center">
          <b>Amount</b>
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" colspan="2" style="border-bottom: solid black 1.0pt; padding-left: 0.0px; text-align: left">
          <b>% of Net Sales</b>
        </td>
        <td>

        </td>
        <td valign="bottom" colspan="3" style="border-bottom: solid black 1.0pt; padding-left: 0.0px; text-align: center">
          <b>Amount</b>
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" colspan="2" style="border-bottom: solid black 1.0pt; padding-left: 0.0px; text-align: left">
          <b>% of Net Sales</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>
          &#160;
        </td>
        <td colspan="3">

        </td>
        <td>
          &#160;
        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>
          &#160;
        </td>
        <td colspan="2">

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; text-align: left">
          Net sales
        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          $
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          873,123
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          100.0
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: left">
          %
        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          $
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          839,302
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          100.0
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: left">
          %
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-bottom: 2.0px; padding-left: 0.0px; text-align: left">
          Cost of sales
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          763,539
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          87.5
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          735,347
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          87.6
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 10.0px; text-align: left">
          <b>Gross Profit</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          109,584
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          12.5
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          103,955
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          12.4
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-bottom: 2.0px; padding-left: 0.0px; text-align: left">
          Selling, general and administrative expenses
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          93,566
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          10.7
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          89,198
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          10.6
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 10.0px; text-align: left">
          <b>Income From Operations</b>
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          16,018
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          1.8
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          14,757
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          1.8
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; text-align: left">
          Interest expense
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          (361
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: left">
          )
        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          -
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          (450
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: left">
          )
        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          (0.1
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: left">
          )
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; text-align: left">
          Other, net
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          364
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          -
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          461
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          0.1
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-bottom: 2.0px; padding-left: 0.0px; text-align: left">
          Income tax provision
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          (6,160
        </td>
        <td valign="bottom" style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: left">
          )
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          (0.7
        </td>
        <td valign="bottom" style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: left">
          )
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          (5,630
        </td>
        <td valign="bottom" style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: left">
          )
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          (0.7
        </td>
        <td valign="bottom" style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: left">
          )
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-bottom: 4.0px; padding-left: 10.0px; text-align: left">
          <b>Net Income</b>
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom: double black 2.25pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          $
        </td>
        <td valign="bottom" style="border-bottom: double black 2.25pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          9,861
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom: double black 2.25pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          1.1
        </td>
        <td valign="bottom" style="border-bottom: double black 2.25pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: left">
          %
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom: double black 2.25pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          $
        </td>
        <td valign="bottom" style="border-bottom: double black 2.25pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          9,138
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom: double black 2.25pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          1.1
        </td>
        <td valign="bottom" style="border-bottom: double black 2.25pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: left">
          %
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="2">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" colspan="15" style="padding-left: 0.0px; text-align: left">
          Weighted average common shares outstanding:
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-bottom: 4.0px; padding-left: 10.0px; text-align: left">
          Basic
        </td>
        <td>

        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom: double black 2.25pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          26,834
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom: double black 2.25pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          26,740
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-bottom: 4.0px; padding-left: 10.0px; text-align: left">
          Diluted
        </td>
        <td>

        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom: double black 2.25pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          26,952
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom: double black 2.25pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          27,002
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; text-align: left">
          Earnings per common share:
        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-bottom: 4.0px; padding-left: 10.0px; text-align: left">
          Basic
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom: double black 2.25pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          $
        </td>
        <td valign="bottom" style="border-bottom: double black 2.25pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          0.37
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom: double black 2.25pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          $
        </td>
        <td valign="bottom" style="border-bottom: double black 2.25pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          0.34
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-bottom: 4.0px; padding-left: 10.0px; text-align: left">
          Diluted
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom: double black 2.25pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          $
        </td>
        <td valign="bottom" style="border-bottom: double black 2.25pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          0.37
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom: double black 2.25pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          $
        </td>
        <td valign="bottom" style="border-bottom: double black 2.25pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          0.34
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
      </tr>
    </table>
    </div>
    <div style="margin-bottom: 10pt; width: 100%; text-indent: 0pt; margin-right: 0pt; margin-left: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <div style="text-align:left">
    <table cellspacing="0" style="margin-bottom: 10.0px; font-size: 8pt; width: 100%; font-family: Times New Roman">
      <tr>
        <td valign="top" style="border-bottom: solid black 1.0pt; padding-left: 0.0px; text-align: left">
          <b>CONSOLIDATED BALANCE SHEETS</b>
        </td>
        <td valign="top" colspan="3" style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: center">
          <b>June 30,</b>
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="top" colspan="3" style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: center">
          <b>December 31,</b>
        </td>
      </tr>
      <tr>
        <td valign="top" style="border-bottom: solid black 1.0pt; padding-left: 0.0px; text-align: left">
          <i><b>(amounts in thousands)</b></i>
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: center">
          <b>2008</b>
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: center">
          <b>2007</b>
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>
          &#160;
        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; text-align: left">
          <b>ASSETS</b>
        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; text-align: left">
          Current Assets:
        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; text-align: left">
          Cash and cash equivalents
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          $
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          40,916
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          $
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          13,741
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; text-align: left">
          Accounts receivable, net
        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          193,599
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          202,216
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; text-align: left">
          Inventories&#8211;merchandise
        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          64,968
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          76,090
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; text-align: left">
          Deferred income taxes
        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          2,732
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          2,858
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; text-align: left">
          Income taxes receivable
        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          917
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          345
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-bottom: 2.0px; padding-left: 0.0px; text-align: left">
          Prepaid expenses and other current assets
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          4,000
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          4,322
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 15.0px; text-align: left">
          <b>Total current assets</b>
        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          307,132
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          299,572
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; text-align: left">
          Property and equipment, net
        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          23,199
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          20,831
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; text-align: left">
          Goodwill
        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          56,867
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          56,867
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; text-align: left">
          Other intangibles, net
        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          2,756
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          3,291
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-bottom: 2.0px; padding-left: 0.0px; text-align: left">
          Other assets
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          306
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          318
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-bottom: 4.0px; padding-left: 15.0px; text-align: left">
          <b>Total Assets</b>
        </td>
        <td valign="bottom" style="border-bottom: double black 2.25pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          $
        </td>
        <td valign="bottom" style="border-bottom: double black 2.25pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          390,260
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom: double black 2.25pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          $
        </td>
        <td valign="bottom" style="border-bottom: double black 2.25pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          380,879
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; text-align: left">
          <b>LIABILITIES AND STOCKHOLDERS&#8217; EQUITY</b>
        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; text-align: left">
          Current Liabilities:
        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; text-align: left">
          Current maturities of capital lease obligation to affiliate
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          $
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          615
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          $
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          527
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; text-align: left">
          Accounts payable
        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          110,924
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          111,140
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; text-align: left">
          Accrued expenses and other liabilities
        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          20,349
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          20,557
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-bottom: 2.0px; padding-left: 0.0px; text-align: left">
          Accrued payroll
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          9,622
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          10,816
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 15.0px; text-align: left">
          <b>Total current liabilities</b>
        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          141,510
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          143,040
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; text-align: left">
          Capital lease obligation to affiliate, less current maturities
        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          3,969
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          4,309
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; text-align: left">
          Deferred income taxes
        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          7,061
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          5,436
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-bottom: 2.0px; padding-left: 0.0px; text-align: left">
          Other liabilities
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          3,742
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          3,784
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-bottom: 2.0px; padding-left: 15.0px; text-align: left">
          <b>Total Liabilities</b>
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          156,282
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          156,569
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; text-align: left">
          Stockholders&#8217; Equity:
        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; text-align: left">
          Common stock
        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          273
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          273
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; text-align: left">
          Additional paid-in capital
        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          93,452
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          94,132
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; text-align: left">
          Retained earnings
        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          141,831
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          131,970
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-bottom: 2.0px; padding-left: 0.0px; text-align: left">
          Treasury stock at cost
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          (1,578
        </td>
        <td valign="bottom" style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: left">
          )
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          (2,065
        </td>
        <td valign="bottom" style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: left">
          )
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-bottom: 2.0px; padding-left: 15.0px; text-align: left">
          <b>Total Stockholders&#8217; Equity</b>
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          233,978
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          224,310
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-bottom: 4.0px; padding-left: 15.0px; text-align: left">
          <b>Total Liabilities and Stockholders&#8217; Equity</b>
        </td>
        <td valign="bottom" style="border-bottom: double black 2.25pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          $
        </td>
        <td valign="bottom" style="border-bottom: double black 2.25pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          390,260
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom: double black 2.25pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          $
        </td>
        <td valign="bottom" style="border-bottom: double black 2.25pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          380,879
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
      </tr>
    </table>
    </div>
    <div style="text-align:left">
    <table cellspacing="0" style="margin-bottom: 10.0px; font-size: 8pt; width: 100%; font-family: Times New Roman">
      <tr>
        <td valign="top" colspan="22" style="border-bottom: solid black 1.0pt; padding-left: 0.0px; text-align: left">
          <b>CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS&#8217; EQUITY</b>
        </td>
      </tr>
      <tr>
        <td valign="top" colspan="22" style="border-bottom: solid black 1.0pt; padding-left: 0.0px; text-align: left">
          <b>Six months ended June 30, 2008 (<i>amounts in thousands</i>)</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td valign="top" colspan="4" style="border-bottom: solid black 1.0pt; padding-left: 0.0px; text-align: center">
          <b>Common Stock</b>
        </td>
        <td>
          &#160;
        </td>
        <td valign="bottom" rowspan="2" colspan="3" style="border-bottom: solid black 1.0pt; padding-left: 0.0px; text-align: center">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>Additional</b><br><b>Paid-In Capital</b>
          </p>
        </td>
        <td>
          &#160;
        </td>
        <td valign="bottom" rowspan="2" colspan="2" style="border-bottom: solid black 1.0pt; padding-left: 0.0px; text-align: center">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>Retained</b><br><b>Earnings</b>
          </p>
        </td>
        <td>
          &#160;
        </td>
        <td valign="top" colspan="5" style="border-bottom: solid black 1.0pt; padding-left: 0.0px; text-align: center">
          <b>Treasury Shares</b>
        </td>
        <td>
          &#160;
        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="top" style="border-bottom: solid black 1.0pt; padding-left: 0.0px; text-align: center">
          <b>Shares</b>
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="top" colspan="2" style="border-bottom: solid black 1.0pt; padding-left: 0.0px; text-align: center">
          <b>Amount</b>
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="top" colspan="2" style="border-bottom: solid black 1.0pt; padding-left: 0.0px; text-align: center">
          <b>Shares</b>
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="top" colspan="2" style="border-bottom: solid black 1.0pt; padding-left: 0.0px; text-align: center">
          <b>Amount</b>
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="top" colspan="3" style="border-bottom: solid black 1.0pt; padding-left: 0.0px; text-align: center">
          <b>Total</b>
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>
          &#160;
        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>
          &#160;
        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; text-align: left">
          <b>Balance &#8211; January 1, 2008</b>
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          27,252
        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          $
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          273
        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          $
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          94,132
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          $
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          131,970
        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          (327
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: left">
          )
        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          ($2,065
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: left">
          )
        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          $
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          224,310
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; text-align: left">
          <p style="margin-top: 0px; margin-bottom: 0px">
            Stock compen-<br>sation expense
          </p>
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          -
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          -
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          531
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          -
        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          -
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          -
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          531
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; text-align: left">
          <p style="margin-top: 0px; margin-bottom: 0px">
            Issuance of common stock under stock incentive<br>&#160;plans,
            including income tax benefits
          </p>
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          11
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          -
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          86
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          -
        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          -
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          -
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          86
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; text-align: left">
          <p style="margin-top: 0px; margin-bottom: 0px">
            Issuance of common stock under Employee<br>&#160;Stock Purchase Plan
          </p>
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          14
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          -
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          129
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          -
        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          -
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          -
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          129
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; text-align: left">
          Repurchase of common stock for Treasury
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          -
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          -
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          -
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          -
        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          (92
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: left">
          )
        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          (939
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: left">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          (939
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: left">
          )
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; text-align: left">
          Issuance of nonvested stock
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          -
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          -
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          (1,426
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: left">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          -
        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          199
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          1,426
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          -
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-bottom: 2.0px; padding-left: 0.0px; text-align: left">
          Net income
        </td>
        <td valign="bottom" style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          -
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          -
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          -
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          9,861
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          -
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          -
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          9,861
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="2">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-bottom: 4.0px; padding-left: 0.0px; text-align: left">
          <b>Balance &#8211; June 30, 2008</b>
        </td>
        <td valign="bottom" style="border-bottom: double black 2.25pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          27,277
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom: double black 2.25pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          $
        </td>
        <td valign="bottom" style="border-bottom: double black 2.25pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          273
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom: double black 2.25pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          $
        </td>
        <td valign="bottom" style="border-bottom: double black 2.25pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          93,452
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom: double black 2.25pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          $
        </td>
        <td valign="bottom" style="border-bottom: double black 2.25pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          141,831
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom: double black 2.25pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          (220
        </td>
        <td valign="bottom" style="border-bottom: double black 2.25pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: left">
          )
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom: double black 2.25pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          ($1,578
        </td>
        <td valign="bottom" style="border-bottom: double black 2.25pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: left">
          )
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom: double black 2.25pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          $
        </td>
        <td valign="bottom" style="border-bottom: double black 2.25pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          233,978
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
      </tr>
    </table>
    </div>
    <div style="margin-bottom: 10pt; width: 100%; text-indent: 0pt; margin-right: 0pt; margin-left: 0pt">
      <div>
        <div style="text-align: left">

        </div>
      </div>
      <div style="page-break-after: always">
        <div style="text-align: center">

        </div>
        <div style="text-align: center">
          <hr style="height: 1.5pt; color: black">

        </div>
      </div>
      <div>
        <div style="text-align: right">

        </div>
      </div>
    </div>
    <div style="text-align:left">
    <table cellspacing="0" style="margin-bottom: 10.0px; font-size: 8pt; width: 100%; font-family: Times New Roman">
      <tr>
        <td valign="top" colspan="9" style="border-bottom: solid black 1.0pt; padding-left: 0.0px; text-align: left">
          <b>CONSOLIDATED STATEMENTS OF CASH FLOWS</b>
        </td>
      </tr>
      <tr>
        <td valign="top" style="border-bottom: solid black 1.0pt; padding-left: 0.0px; text-align: left">
          <b>Six Months Ended June 30, (<i>amounts in thousands</i>)</b>
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: center">
          <p style="margin-top: 0px; margin-bottom: 0px">
            <b>2008</b>
          </p>
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: center">
          <b>2007</b>
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>
          &#160;
        </td>
        <td colspan="3">

        </td>
        <td>
          &#160;
        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; text-align: left">
          <b>Cash Flows from Operating Activities:</b>
        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; text-align: left">
          Net income
        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          $
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          9,861
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          $
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          9,138
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; text-align: left">
          <p style="margin-top: 0px; margin-bottom: 0px">
            Adjustments to reconcile net income to net cash &#160;provided by
            operating activities:
          </p>
        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 15.0px; text-align: left">
          Depreciation and amortization
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          3,505
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          3,472
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 15.0px; text-align: left">
          Provision for doubtful accounts
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          696
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          894
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 15.0px; text-align: left">
          Deferred income taxes
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          1,751
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          79
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 15.0px; text-align: left">
          Stock compensation expense
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          531
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          (23
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: left">
          )
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 15.0px; text-align: left">
          Excess tax benefit from exercise of stock options
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          (3
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: left">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          (358
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: left">
          )
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 15.0px; text-align: left">
          Income tax benefit related to employee equity awards
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          10
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          918
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 15.0px; text-align: left">
          Loss on disposal of fixed assets
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          -
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          8
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; text-align: left">
          Changes in assets and liabilities:
        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 15.0px; text-align: left">
          Accounts receivable
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          7,921
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          25
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 15.0px; text-align: left">
          Inventories
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          11,122
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          (5,835
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: left">
          )
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 15.0px; text-align: left">
          Prepaid expenses and other current assets
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          (250
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: left">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          70
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 15.0px; text-align: left">
          Other non-current assets
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          12
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          (35
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: left">
          )
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 15.0px; text-align: left">
          Accounts payable
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          <p style="margin-top: 0px; margin-bottom: 0px">
            (89
          </p>
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: left">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          (10,168
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: left">
          )
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-bottom: 2.0px; padding-left: 15.0px; text-align: left">
          Accrued expenses and other liabilities
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          (1,444
        </td>
        <td valign="bottom" style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: left">
          )
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          2,252
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-bottom: 2.0px; padding-left: 0.0px; text-align: left">
          Net cash provided by operating activities
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          <p style="margin-top: 0px; margin-bottom: 0px">
            33,623
          </p>
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          437
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; text-align: left">
          <b>Cash Flows from Investing Activities:</b>
        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-bottom: 2.0px; padding-left: 0.0px; text-align: left">
          Purchases of property and equipment
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          <p style="margin-top: 0px; margin-bottom: 0px">
            (5,465
          </p>
        </td>
        <td valign="bottom" style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: left">
          )
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          (3,151
        </td>
        <td valign="bottom" style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: left">
          )
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-bottom: 2.0px; padding-left: 0.0px; text-align: left">
          Net cash used for investing activities
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          <p style="margin-top: 0px; margin-bottom: 0px">
            (5,465
          </p>
        </td>
        <td valign="bottom" style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: left">
          )
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          (3,151
        </td>
        <td valign="bottom" style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: left">
          )
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; text-align: left">
          <b>Cash Flows from Financing Activities:</b>
        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
      </tr>
      <tr>
        <td>

        </td>
        <td>

        </td>
        <td colspan="3">

        </td>
        <td>

        </td>
        <td colspan="3">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; text-align: left">
          Proceeds from short-term borrowings
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          35,345
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          1,461
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; text-align: left">
          Repayment of short-term borrowings
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          (35,345
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: left">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          (1,461
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: left">
          )
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; text-align: left">
          Repayment of capital lease obligation
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          (252
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: left">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          (438
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: left">
          )
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; text-align: left">
          Purchase of treasury shares
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          (939
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: left">
          )
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          -
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; text-align: left">
          Exercise of stock options
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          76
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          2,544
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; text-align: left">
          Issuance of stock under Employee Stock Purchase Plan
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          129
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          134
        </td>
        <td>

        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-bottom: 2.0px; padding-left: 0.0px; text-align: left">
          Excess tax benefit from exercise of stock options
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          3
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          358
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-bottom: 2.0px; padding-left: 0.0px; text-align: left">
          Net cash (used for) provided by financing activities
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          (983
        </td>
        <td valign="bottom" style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: left">
          )
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          2,598
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-left: 0.0px; text-align: left">
          Increase (decrease) in cash and cash equivalents
        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          27,175
        </td>
        <td>

        </td>
        <td>

        </td>
        <td>

        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          (116
        </td>
        <td valign="bottom" style="white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: left">
          )
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-bottom: 2.0px; padding-left: 0.0px; text-align: left">
          Cash and cash equivalents, beginning of period
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          13,741
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td>

        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
        <td valign="bottom" style="border-bottom: solid black 1.0pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          17,582
        </td>
        <td style="border-bottom: solid black 1.0pt">
          &#160;
        </td>
      </tr>
      <tr>
        <td valign="top" style="padding-bottom: 4.0px; padding-left: 0.0px; text-align: left">
          Cash and cash equivalents, end of period
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom: double black 2.25pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          $
        </td>
        <td valign="bottom" style="border-bottom: double black 2.25pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          40,916
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
        <td>

        </td>
        <td valign="bottom" style="border-bottom: double black 2.25pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          $
        </td>
        <td valign="bottom" style="border-bottom: double black 2.25pt; white-space: nowrap; padding-right: 0.0px; padding-left: 0.0px; text-align: right">
          17,466
        </td>
        <td style="border-bottom: double black 2.25pt">
          &#160;
        </td>
      </tr>
    </table>
    </div>
    <p>

    </p>
    <p>
      CONTACT:<br>PC Connection, Inc.<br>Stephen Baldridge, 603-683-2322<br>Sr.
      Vice President of Finance &amp; Corporate Controller
    </p>
  </body>
</html>
</TEXT>
</DOCUMENT>
</SUBMISSION>
