<SEC-DOCUMENT>0001144204-17-057073.txt : 20171108
<SEC-HEADER>0001144204-17-057073.hdr.sgml : 20171108
<ACCEPTANCE-DATETIME>20171108102808
ACCESSION NUMBER:		0001144204-17-057073
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20171106
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20171108
DATE AS OF CHANGE:		20171108

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			NAPCO SECURITY TECHNOLOGIES, INC
		CENTRAL INDEX KEY:			0000069633
		STANDARD INDUSTRIAL CLASSIFICATION:	COMMUNICATIONS EQUIPMENT, NEC [3669]
		IRS NUMBER:				112277818
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			0630

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-10004
		FILM NUMBER:		171185450

	BUSINESS ADDRESS:	
		STREET 1:		333 BAYVIEW AVE
		CITY:			AMITYVILLE
		STATE:			NY
		ZIP:			11701
		BUSINESS PHONE:		631-842-9400

	MAIL ADDRESS:	
		STREET 1:		333 BAYVIEW AVE
		STREET 2:		XXXXXXXXXXXXXXXXXXX
		CITY:			AMITYVILLE
		STATE:			NY
		ZIP:			11701

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	NAPCO SECURITY SYSTEMS INC
		DATE OF NAME CHANGE:	19920703
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>tv478840_8k.htm
<DESCRIPTION>8-K
<TEXT>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

<!-- Field: Rule-Page --><DIV ALIGN="LEFT" STYLE="margin: 0"><DIV STYLE="font-size: 1pt; border-top: Black 2pt solid; border-bottom: Black 1pt solid; width: 100%">&nbsp;</DIV></DIV><!-- Field: /Rule-Page -->

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>UNITED STATES</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SECURITIES AND EXCHANGE COMMISSION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Washington, D.C. 20549</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>______________</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>FORM 8-K</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>CURRENT REPORT</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Pursuant to Section 13 or 15(d) of the</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Securities Exchange Act of 1934</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Date of Report (Date of earliest event reported)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>November 6, 2017</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 14pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><U>NAPCO SECURITY TECHNOLOGIES, INC.</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Exact name of registrant as specified in
charter)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" ALIGN="CENTER" STYLE="width: 80%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
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    <TD STYLE="vertical-align: bottom; width: 32%; border-bottom: black 1pt solid; padding-right: 0.75pt; padding-bottom: 0.75pt; padding-left: 0.75pt; text-align: center"><FONT STYLE="font-size: 10pt"><B>Delaware</B></FONT></TD>
    <TD STYLE="width: 1%; padding: 0.75pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 34%; border-bottom: black 1pt solid; padding-bottom: 0.75pt; padding-left: 0.75pt; text-align: center"><FONT STYLE="font-size: 10pt"><B>0-10004</B></FONT></TD>
    <TD STYLE="width: 1%; padding: 0.75pt">&nbsp;</TD>
    <TD STYLE="vertical-align: bottom; width: 32%; border-bottom: black 1pt solid; padding-bottom: 0.75pt; padding-left: 0.75pt; text-align: center"><FONT STYLE="font-size: 10pt"><B>11-2277818</B></FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: bottom; padding-right: 0.75pt; padding-bottom: 0.75pt; padding-left: 0.75pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: center; margin-bottom: 0pt">(State or other jurisdiction of</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">incorporation)</P></TD>
    <TD STYLE="padding: 0.75pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 0.75pt; padding-bottom: 0.75pt; padding-left: 0.75pt; text-align: center"><FONT STYLE="font-size: 10pt">(Commission File Number)</FONT></TD>
    <TD STYLE="padding: 0.75pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 0.75pt; padding-bottom: 0.75pt; padding-left: 0.75pt; text-align: center"><P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font-size: 10pt">(IRS Employer</FONT></P>
                                                                                <P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font-size: 10pt">Identification No.)</FONT></P></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><U>333 Bayview Avenue, Amityville, New
York 11701</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Address of principal executive offices)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Registrant's telephone number, including
area code&nbsp;<B><U>(631) 842-9400</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">____________________________________________________</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">(Former name and former address if changed
from last report)</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Check the appropriate box below if the Form 8-K filing is intended
to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction
A.2 below):</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Wingdings">&#168;</FONT></TD><TD STYLE="text-align: justify">Written communications pursuant to Rule 425 under the
Securities Act (17 CFR 230.425)</TD>
</TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Wingdings">&#168;</FONT></TD><TD STYLE="text-align: justify">Soliciting material pursuant to Rule 14a-12 under the
Exchange Act (17 CFR 240.14a-12)</TD>
</TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Wingdings">&#168;</FONT></TD><TD STYLE="text-align: justify">Pre-commencement communications pursuant to Rule 14d-2(b)
under the Exchange Act (17 CFR 240.14d-2(b))</TD>
</TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; width: 100%"><TR STYLE="vertical-align: top; text-align: justify">
<TD STYLE="width: 0in"></TD><TD STYLE="width: 0.25in; text-align: left"><FONT STYLE="font-family: Wingdings">&#168;</FONT></TD><TD STYLE="text-align: justify">Pre-commencement communications pursuant to Rule 13e-4(c)
under the Exchange Act (17 CFR 240.13e-4(c))</TD>
</TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="text-align: justify; margin: 0pt 0">Indicate by check mark whether the registrant is an emerging growth company as defined
in Rule 405 of the Securities Act of 1933 (&sect;230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934
(&sect;240.12b-2 of this chapter).</P>

<P STYLE="margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: right; margin: 0pt 0">Emerging growth company <FONT STYLE="font-family: Wingdings">&uml;</FONT></P>

<P STYLE="margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: justify; margin: 0pt 0">If an emerging growth company, indicate by check mark if the registrant has elected
not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant
to Section 13(a) of the Exchange Act. <FONT STYLE="font-family: Wingdings">&uml;</FONT></P>

<P STYLE="margin: 0pt 0">&nbsp;</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Item 2.02.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;RESULTS OF OPERATIONS
AND FINANCIAL CONDITION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">On November 6, 2017 the registrant issued a press release to
report results for the three months ended September 30, 2017. This press release is furnished as Exhibit 99.1.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The information in this Current Report on Form 8-K, including
the exhibit attached hereto, is furnished pursuant to Item 2.02 and shall not be deemed to be &quot;filed&quot; for the purposes
of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liabilities of that section.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Item 9.01.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FINANCIAL STATEMENTS
AND EXHIBITS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(d) Exhibits:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A HREF="tv478840_ex99-1.htm" STYLE="-sec-extract: exhibit">99.1&nbsp;&nbsp;&nbsp;&nbsp;Press Release issued by Napco Security Technologies, Inc. dated November 6, 2017.</A></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>SIGNATURE</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">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 thereunder duly authorized.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR>
    <TD STYLE="padding: 0.75pt">&nbsp;</TD>
    <TD STYLE="padding: 0.75pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="vertical-align: top; border-bottom: black 1pt solid; padding-right: 0.75pt; padding-bottom: 0.75pt; padding-left: 0.75pt; text-align: center"><FONT STYLE="font-size: 10pt"><B>NAPCO SECURITY TECHNOLOGIES, INC.</B></FONT></TD></TR>
<TR>
    <TD STYLE="padding: 0.75pt">&nbsp;</TD>
    <TD STYLE="padding: 0.75pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="vertical-align: top; padding-right: 0.75pt; padding-bottom: 0.75pt; padding-left: 0.75pt; text-align: center"><FONT STYLE="font-size: 10pt">(Registrant)</FONT></TD></TR>
<TR>
    <TD STYLE="vertical-align: top; width: 5%">&nbsp;</TD>
    <TD STYLE="width: 34%; padding: 0.75pt">&nbsp;</TD>
    <TD STYLE="width: 5%; padding-right: 0.75pt; padding-bottom: 0.75pt; padding-left: 0.75pt">&nbsp;</TD>
    <TD STYLE="width: 57%; padding-right: 0.75pt; padding-bottom: 0.75pt; padding-left: 0.75pt">&nbsp;</TD></TR>
<TR>
    <TD STYLE="vertical-align: top; padding-right: 0.75pt; padding-bottom: 1.5pt; padding-left: 0.75pt"><FONT STYLE="font-size: 10pt">Date:</FONT></TD>
    <TD STYLE="vertical-align: top; padding-right: 0.75pt; padding-bottom: 1.5pt; padding-left: 0.75pt"><FONT STYLE="font-size: 10pt">November 8, 2017</FONT></TD>
    <TD STYLE="vertical-align: top; padding-right: 0.75pt; padding-bottom: 1.5pt; padding-left: 0.75pt; text-align: left"><FONT STYLE="font-size: 10pt">By:</FONT></TD>
    <TD STYLE="vertical-align: top; border-bottom: black 1pt solid; padding-right: 0.75pt; padding-bottom: 0.75pt; padding-left: 0.75pt"><FONT STYLE="font-size: 10pt">/s/ Kevin S. Buchel</FONT></TD></TR>
<TR>
    <TD STYLE="padding: 0.75pt">&nbsp;</TD>
    <TD STYLE="padding: 0.75pt">&nbsp;</TD>
    <TD STYLE="padding: 0.75pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 0.75pt; padding-bottom: 0.75pt; padding-left: 0.75pt"><FONT STYLE="font-size: 10pt">Kevin S. Buchel</FONT></TD></TR>
<TR>
    <TD STYLE="padding: 0.75pt">&nbsp;</TD>
    <TD STYLE="padding: 0.75pt">&nbsp;</TD>
    <TD STYLE="padding: 0.75pt">&nbsp;</TD>
    <TD STYLE="vertical-align: top; padding-right: 0.75pt; padding-bottom: 0.75pt; padding-left: 0.75pt"><FONT STYLE="font-size: 10pt">Senior Vice President and Chief Financial Officer</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><B>&nbsp;</B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><B>&nbsp;</B></P>

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<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>tv478840_ex99-1.htm
<DESCRIPTION>EXHIBIT 99.1
<TEXT>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><B></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><B>Exhibit 99.1</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">NAPCO Announces First Quarter 2018 Results</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">- Sales Increase 5% to a First Quarter Record
of $21.2 Million-</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">-Recurring Revenues Grew 56% for the Quarter-</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">-Earnings per Share increases to $0.05 from
$0.03-</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">--Management to Host Conference Call Today
at 11 a.m. ET-</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">AMITYVILLE, N.Y., November 6, 2017 --&nbsp;NAPCO Security Technologies,
Inc. (NasdaqGS: NSSC), one of the world's leading solutions providers and manufacturers of high tech electronic intrusion security,
Internet of Things (IoT) connected home, video and fire systems, as well as enterprise-class access control and door locking products,
today announced financial results for its first fiscal quarter ended September 30, 2017.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Financial Highlights:</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 18pt"></TD><TD STYLE="width: 12pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>Net sales for the quarter were a record $21.2 million, up 5% from the same quarter last year.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 18pt"></TD><TD STYLE="width: 12pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>Recurring revenue for the quarter (which are included in net sales) increased 56% and now has a prospective annual run rate
of $10.6 million based on September 2017 recurring revenue.**</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 18pt"></TD><TD STYLE="width: 12pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>Income before taxes for the quarter 2017 increased 49% to $1,033,000 from $692,000 a year ago.</TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 18pt"></TD><TD STYLE="width: 12pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>Earnings per share (diluted) for the quarter was $0.05, as compared to $0.03 for the same period a year ago.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Richard Soloway, Chairman and President commented, &ldquo;We
are pleased that our Q1 Fiscal 2018 performance continued a string of 13 consecutive quarters of increased sales growth for our
Company. The investments we have made in sales, marketing and engineering continue to provide a solid foundation for steady, consistent
growth in sales and profitability and bode well for a strong future for NAPCO.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&ldquo;As a leader in the wireless cellular alarm and IoT communicator
category, our expansive, unique StarLink&reg; line of solutions continues to build market share providing us with a 56% increase
in subscription-based, recurring revenue for this quarter. Capitalizing on the recent need for millions of landline-connected fire
alarm control panels to upgrade to wireless, cellular or cellular/IP based communications technology, StarLink Fire&reg; communicators,
with their unique Panel-Powered Technology&reg;, continue to generate tremendous interest. With the launch in June, 2017, of our
dual-path fire communicator, needed by code in several municipalities across the U.S., StarLink now markets the most extensive
and feature-rich line of commercial intrusion and fire communicator products in the industry.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Mr. Soloway continued &ldquo;Our award-winning StarLink Connect&reg;
solution, which gives dealers the ability to add Smart Home services to millions of regular, existing alarm installations across
the country, is experiencing broad market acceptance and beginning to build market share. This RMR-generating, subscription-based
service offers residential consumers the ability to use an app to remotely operate their security systems, lighting, locks, thermostats,
and video cameras, from any smart device. StarLink Connect also, importantly, offers our dealers the opportunity to increase the
recurring monthly income stream from their customers, by trading them up from a regular alarm system to Smart Home services, adding
value to their account base.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&ldquo;Our high-margin commercial Divisions Alarm Lock Access
Control Locks, Marks Architectural Hardware and Continental Enterprise-Class Access Control, continued to show a significant increase
in market presence in the Education market vertical. With a strong array of integrated, school venue designed security solutions,
along with the administering of the highly successful SAVI or School Access-control Vulnerability Index and auditing system, NAPCO
continues to lead the way in fortifying and augmenting school security levels. NAPCO dealers and integrators are trained in systematically
evaluating any school facility&rsquo;s security level and then addressing any deficiency with school-specific security solutions.
This approach and portfolio of product solutions is also increasingly being used in any public venues, in addition to educational
facilities, concerned with addressing the growing threat of terrorist activities and active-shooter events.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Mr. Soloway concluded, &ldquo;We are confident that we are on
track to consistently increase our sales and profits and we believe that our sales, marketing and engineering investments will
continue to pay dividends in future accelerated growth. All indicators and trends seem positive and we look forward to having an
exceptional fiscal year 2018.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Financial Results</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Net Sales for the three months ended September
30, 2017 increased to a record $21.2 million, as compared to $20.2 million for the same period one year ago, an increase of 5%.
Selling, general and administrative expenses for the quarter were $5.8 million, or 27.5% of sales, as compared to $5.7 million,
or 28.4% of sales for the same period last year.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Operating income for the three months ended September 30, 2017
was $1,059,000, as compared to $716,000 for the same period a year ago, an increase of 48%. Adjusted EBITDA* for the three months
ended September 30, 2017 was $1.4 million, or $0.08 per diluted share, as compared to $1.1 million, or $0.06 per diluted share
an increase of 33%.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Net income for the three months ended September 30, 2017 was
$890,000, or $0.05 per diluted share, as compared to $568,000, or $0.03 per share, for the same quarter last year, an increase
of 57%.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Balance Sheet Summary</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">At September 30, 2017, the Company had $4.5 million in cash
and cash equivalents as compared to $3.5 million as of June 30, 2017. NAPCO had working capital of $41.2 million at September 30,
2017 as compared with working capital of $40.8 million at June 30, 2017. Current ratio was 5.9:1 at September 30, 2017 and 4.9:1
at June 30, 2017.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Conference Call Information</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Management will conduct a conference call at 11 a.m. ET today,
November 6, 2017. Interested parties may participate in the call by dialing 1-877-407-4018 or for international callers, 1-201-689-8471,
about 5-10 minutes prior to the start time of 11 a.m. ET. The conference call will also be available on replay starting at 2 p.m.
ET on November 6, 2017 and ending on November 13, 2017 at 11:59 p.m. ET. For the replay, please dial 1-844-512-2921 domestically,
or 1-412-317-6671 for international callers, and use the replay access code 13673027. In addition, the call will be webcast and
will be available on the Company's website at&nbsp;<U>www.napcosecurity.com</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">About NAPCO Security Technologies, Inc.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">NAPCO Security Technologies, Inc. is one of the world's leading
solutions providers and manufacturers of high-technology electronic security, including recurring revenue, connected home, video,
fire alarm, access control and door locking systems. The Company consists of four Divisions: <U>NAPCO</U>, its <U>security and
connected home segment</U>, plus three wholly-owned subsidiaries: <U>Alarm Lock</U>, <U>Continental Instruments</U>, and <U>Marks
USA</U>. Headquartered in Amityville, New York, its products are installed by tens of thousands of security professionals worldwide
in commercial, industrial, institutional, residential and government applications. NAPCO products have earned a reputation for&nbsp;innovation,
technical excellence and reliability, positioning the Company for growth in the multi-billion dollar and rapidly expanding electronic
security market. For additional information on NAPCO, please visit the Company's web site at <U>http://www.napcosecurity.com</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Safe Harbor Statement</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>**This press release contains forward-looking statements
that involve numerous risks and uncertainties. Actual results, performance or achievements could differ materially from those
anticipated in such forward-looking statements as a result of certain factors, including those set forth in the Company's filings
with the Securities and Exchange Commission.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="9" STYLE="padding: 0; font-size: 10pt; text-align: center; text-indent: 0">NAPCO SECURITY TECHNOLOGIES, INC. AND SUBSIDIARIES</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="9" STYLE="padding: 0; font-size: 10pt; text-align: center; text-indent: 0">CONDENSED CONSOLIDATED BALANCE SHEETS</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding: 0; font-size: 10pt; text-indent: 0">&nbsp;</TD><TD STYLE="padding: 0; font-size: 10pt; text-indent: 0">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="padding: 0; font-size: 10pt; text-align: center; text-indent: 0">September 30, 2017</TD><TD STYLE="padding: 0; font-size: 10pt; text-indent: 0">&nbsp;</TD><TD STYLE="padding: 0; font-size: 10pt; text-indent: 0">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding: 0; font-size: 10pt; text-align: center; text-indent: 0">June 30, 2017</TD><TD STYLE="padding: 0; font-size: 10pt; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding: 0; font-size: 10pt; text-indent: 0">&nbsp;</TD><TD STYLE="padding: 0; font-size: 10pt; text-indent: 0">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: center; padding: 0; text-indent: 0">(unaudited)</TD><TD STYLE="padding: 0; font-size: 10pt; text-indent: 0">&nbsp;</TD><TD STYLE="padding: 0; font-size: 10pt; text-indent: 0">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="border-bottom: Black 1pt solid; font-size: 10pt; text-align: center; padding: 0; text-indent: 0">(audited)</TD><TD STYLE="padding: 0; font-size: 10pt; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="padding: 0; font-size: 10pt; text-align: center; text-indent: 0">ASSETS</TD><TD STYLE="padding: 0; font-size: 10pt; text-indent: 0">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="padding: 0; font-size: 10pt; text-align: center; text-indent: 0">(in thousands, except for share data)</TD><TD STYLE="padding: 0; font-size: 10pt; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding: 0; font-size: 10pt; text-align: left; text-indent: 0">CURRENT ASSETS</TD><TD STYLE="padding: 0; font-size: 10pt; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="padding: 0; font-size: 10pt; text-align: right; text-indent: 0">&nbsp;</TD><TD STYLE="padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="padding: 0; font-size: 10pt; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="padding: 0; font-size: 10pt; text-align: right; text-indent: 0">&nbsp;</TD><TD STYLE="padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding: 0 0 0 0.125in; width: 74%; font-size: 10pt; text-align: left; text-indent: 0">Cash and cash equivalents</TD><TD STYLE="padding: 0; width: 1%; font-size: 10pt; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; width: 1%; font-size: 10pt; text-align: left; text-indent: 0">$</TD><TD STYLE="padding: 0; width: 10%; font-size: 10pt; text-align: right; text-indent: 0">4,453</TD><TD STYLE="padding: 0; width: 1%; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="padding: 0; width: 1%; font-size: 10pt; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; width: 1%; font-size: 10pt; text-align: left; text-indent: 0">$</TD><TD STYLE="padding: 0; width: 10%; font-size: 10pt; text-align: right; text-indent: 0">3,454</TD><TD STYLE="padding: 0; width: 1%; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding: 0 0 0 0.125in; font-size: 10pt; text-align: left; text-indent: 0"><P STYLE="margin-top: 0; margin-bottom: 0">Accounts receivable, net of allowance for doubtful accounts of $175 and $155 at
                                                                                          September 30, 2017 and June 30, 2017, respectively, and other reserves</P></TD><TD STYLE="padding: 0; font-size: 10pt; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="padding: 0; font-size: 10pt; text-align: right; text-indent: 0">17,746</TD><TD STYLE="padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="padding: 0; font-size: 10pt; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="padding: 0; font-size: 10pt; text-align: right; text-indent: 0">20,275</TD><TD STYLE="padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding: 0 0 0 0.125in; font-size: 10pt; text-indent: 0">Inventories</TD><TD STYLE="padding: 0; font-size: 10pt; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="padding: 0; font-size: 10pt; text-align: right; text-indent: 0">26,284</TD><TD STYLE="padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="padding: 0; font-size: 10pt; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="padding: 0; font-size: 10pt; text-align: right; text-indent: 0">26,212</TD><TD STYLE="padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding: 0 0 0 0.125in; font-size: 10pt; text-align: left; text-indent: 0">Prepaid expenses and other current assets</TD><TD STYLE="padding: 0; font-size: 10pt; text-indent: 0">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; padding: 0; font-size: 10pt; text-align: right; text-indent: 0">1,130</TD><TD STYLE="padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="padding: 0; font-size: 10pt; text-indent: 0">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; padding: 0; font-size: 10pt; text-align: right; text-indent: 0">1,330</TD><TD STYLE="padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding: 0 0 0 0.25in; font-size: 10pt; text-align: left; text-indent: 0">Total Current Assets</TD><TD STYLE="padding: 0; font-size: 10pt; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="padding: 0; font-size: 10pt; text-align: right; text-indent: 0">49,613</TD><TD STYLE="padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="padding: 0; font-size: 10pt; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="padding: 0; font-size: 10pt; text-align: right; text-indent: 0">51,271</TD><TD STYLE="padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding: 0 0 0 0.125in; font-size: 10pt; text-align: left; text-indent: 0">Inventories - non-current</TD><TD STYLE="padding: 0; font-size: 10pt; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="padding: 0; font-size: 10pt; text-align: right; text-indent: 0">4,854</TD><TD STYLE="padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="padding: 0; font-size: 10pt; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="padding: 0; font-size: 10pt; text-align: right; text-indent: 0">4,367</TD><TD STYLE="padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding: 0 0 0 0.125in; font-size: 10pt; text-align: left; text-indent: 0">Deferred income taxes</TD><TD STYLE="padding: 0; font-size: 10pt; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="padding: 0; font-size: 10pt; text-align: right; text-indent: 0">484</TD><TD STYLE="padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="padding: 0; font-size: 10pt; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="padding: 0; font-size: 10pt; text-align: right; text-indent: 0">644</TD><TD STYLE="padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding: 0 0 0 0.125in; font-size: 10pt; text-align: left; text-indent: 0">Property, plant and equipment, net</TD><TD STYLE="padding: 0; font-size: 10pt; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="padding: 0; font-size: 10pt; text-align: right; text-indent: 0">6,820</TD><TD STYLE="padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="padding: 0; font-size: 10pt; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="padding: 0; font-size: 10pt; text-align: right; text-indent: 0">6,543</TD><TD STYLE="padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding: 0 0 0 0.125in; font-size: 10pt; text-align: left; text-indent: 0">Intangible assets, net</TD><TD STYLE="padding: 0; font-size: 10pt; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="padding: 0; font-size: 10pt; text-align: right; text-indent: 0">7,823</TD><TD STYLE="padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="padding: 0; font-size: 10pt; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="padding: 0; font-size: 10pt; text-align: right; text-indent: 0">7,916</TD><TD STYLE="padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding: 0 0 0 0.125in; font-size: 10pt; text-align: left; text-indent: 0">Other assets</TD><TD STYLE="padding: 0; font-size: 10pt; text-indent: 0">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; padding: 0; font-size: 10pt; text-align: right; text-indent: 0">151</TD><TD STYLE="padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="padding: 0; font-size: 10pt; text-indent: 0">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; padding: 0; font-size: 10pt; text-align: right; text-indent: 0">121</TD><TD STYLE="padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding: 0 0 0 0.25in; font-size: 10pt; text-align: left; text-indent: 0">TOTAL ASSETS</TD><TD STYLE="padding: 0; font-size: 10pt; text-indent: 0">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; padding: 0; font-size: 10pt; text-align: left; text-indent: 0">$</TD><TD STYLE="border-bottom: Black 2.5pt double; padding: 0; font-size: 10pt; text-align: right; text-indent: 0">69,745</TD><TD STYLE="padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="padding: 0; font-size: 10pt; text-indent: 0">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; padding: 0; font-size: 10pt; text-align: left; text-indent: 0">$</TD><TD STYLE="border-bottom: Black 2.5pt double; padding: 0; font-size: 10pt; text-align: right; text-indent: 0">70,862</TD><TD STYLE="padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding: 0; font-size: 10pt; text-align: center; text-indent: 0">LIABILITIES AND STOCKHOLDERS' EQUITY</TD><TD STYLE="padding: 0; font-size: 10pt; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="padding: 0; font-size: 10pt; text-align: right; text-indent: 0">&nbsp;</TD><TD STYLE="padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="padding: 0; font-size: 10pt; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="padding: 0; font-size: 10pt; text-align: right; text-indent: 0">&nbsp;</TD><TD STYLE="padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding: 0; font-size: 10pt; text-align: left; text-indent: 0">CURRENT LIABILITIES</TD><TD STYLE="padding: 0; font-size: 10pt; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="padding: 0; font-size: 10pt; text-align: right; text-indent: 0">&nbsp;</TD><TD STYLE="padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="padding: 0; font-size: 10pt; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="padding: 0; font-size: 10pt; text-align: right; text-indent: 0">&nbsp;</TD><TD STYLE="padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding: 0 0 0 0.125in; font-size: 10pt; text-align: left; text-indent: 0">Accounts payable</TD><TD STYLE="padding: 0; font-size: 10pt; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; font-size: 10pt; text-align: left; text-indent: 0">$</TD><TD STYLE="padding: 0; font-size: 10pt; text-align: right; text-indent: 0">4,306</TD><TD STYLE="padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="padding: 0; font-size: 10pt; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; font-size: 10pt; text-align: left; text-indent: 0">$</TD><TD STYLE="padding: 0; font-size: 10pt; text-align: right; text-indent: 0">5,653</TD><TD STYLE="padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding: 0 0 0 0.125in; font-size: 10pt; text-align: left; text-indent: 0">Accrued expenses</TD><TD STYLE="padding: 0; font-size: 10pt; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="padding: 0; font-size: 10pt; text-align: right; text-indent: 0">1,941</TD><TD STYLE="padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="padding: 0; font-size: 10pt; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="padding: 0; font-size: 10pt; text-align: right; text-indent: 0">2,209</TD><TD STYLE="padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding: 0 0 0 0.125in; font-size: 10pt; text-align: left; text-indent: 0">Accrued salaries and wages</TD><TD STYLE="padding: 0; font-size: 10pt; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="padding: 0; font-size: 10pt; text-align: right; text-indent: 0">2,086</TD><TD STYLE="padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="padding: 0; font-size: 10pt; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="padding: 0; font-size: 10pt; text-align: right; text-indent: 0">2,322</TD><TD STYLE="padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding: 0 0 0 0.125in; font-size: 10pt; text-align: left; text-indent: 0">Accrued income taxes</TD><TD STYLE="padding: 0; font-size: 10pt; text-indent: 0">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; padding: 0; font-size: 10pt; text-align: right; text-indent: 0">88</TD><TD STYLE="padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="padding: 0; font-size: 10pt; text-indent: 0">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; padding: 0; font-size: 10pt; text-align: right; text-indent: 0">289</TD><TD STYLE="padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding: 0 0 0 0.25in; font-size: 10pt; text-align: left; text-indent: 0">Total Current Liabilities</TD><TD STYLE="padding: 0; font-size: 10pt; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="padding: 0; font-size: 10pt; text-align: right; text-indent: 0">8,421</TD><TD STYLE="padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="padding: 0; font-size: 10pt; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="padding: 0; font-size: 10pt; text-align: right; text-indent: 0">10,473</TD><TD STYLE="padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding: 0; font-size: 10pt; text-align: left; text-indent: 0">Long-term debt, net of current maturities</TD><TD STYLE="padding: 0; font-size: 10pt; text-indent: 0">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; padding: 0; font-size: 10pt; text-align: right; text-indent: 0">3,500</TD><TD STYLE="padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="padding: 0; font-size: 10pt; text-indent: 0">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; padding: 0; font-size: 10pt; text-align: right; text-indent: 0">3,500</TD><TD STYLE="padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding: 0 0 0 0.25in; font-size: 10pt; text-align: left; text-indent: 0">Total Liabilities</TD><TD STYLE="padding: 0; font-size: 10pt; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="padding: 0; font-size: 10pt; text-align: right; text-indent: 0">11,921</TD><TD STYLE="padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="padding: 0; font-size: 10pt; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="padding: 0; font-size: 10pt; text-align: right; text-indent: 0">13,973</TD><TD STYLE="padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding: 0; font-size: 10pt; text-align: left; text-indent: 0">COMMITMENTS AND CONTINGENCIES</TD><TD STYLE="padding: 0; font-size: 10pt; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="padding: 0; font-size: 10pt; text-align: right; text-indent: 0">&nbsp;</TD><TD STYLE="padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="padding: 0; font-size: 10pt; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="padding: 0; font-size: 10pt; text-align: right; text-indent: 0">&nbsp;</TD><TD STYLE="padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding: 0; font-size: 10pt; text-align: left; text-indent: 0">STOCKHOLDERS' EQUITY</TD><TD STYLE="padding: 0; font-size: 10pt; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="padding: 0; font-size: 10pt; text-align: right; text-indent: 0">&nbsp;</TD><TD STYLE="padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="padding: 0; font-size: 10pt; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="padding: 0; font-size: 10pt; text-align: right; text-indent: 0">&nbsp;</TD><TD STYLE="padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding: 0 0 0 0.125in; font-size: 10pt; text-align: left; text-indent: 0">Common Stock, par value $0.01 per share;
    40,000,000 shares authorized;&nbsp;&nbsp;21,178,692 and 21,174,507 shares issued; and 18,848,842 and 18,844,657 shares
    outstanding, respectively</TD><TD STYLE="padding: 0; font-size: 10pt; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="padding: 0; font-size: 10pt; text-align: right; text-indent: 0">212</TD><TD STYLE="padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="padding: 0; font-size: 10pt; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="padding: 0; font-size: 10pt; text-align: right; text-indent: 0">212</TD><TD STYLE="padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding: 0 0 0 0.125in; font-size: 10pt; text-align: left; text-indent: 0">Additional paid-in capital</TD><TD STYLE="padding: 0; font-size: 10pt; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="padding: 0; font-size: 10pt; text-align: right; text-indent: 0">16,683</TD><TD STYLE="padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="padding: 0; font-size: 10pt; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="padding: 0; font-size: 10pt; text-align: right; text-indent: 0">16,638</TD><TD STYLE="padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding: 0 0 0 0.125in; font-size: 10pt; text-align: left; text-indent: 0">Retained earnings</TD><TD STYLE="padding: 0; font-size: 10pt; text-indent: 0">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; padding: 0; font-size: 10pt; text-align: right; text-indent: 0">52,661</TD><TD STYLE="padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="padding: 0; font-size: 10pt; text-indent: 0">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; padding: 0; font-size: 10pt; text-align: right; text-indent: 0">51,771</TD><TD STYLE="padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding: 0; font-size: 10pt; text-indent: 0">&nbsp;</TD><TD STYLE="padding: 0; font-size: 10pt; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="padding: 0; font-size: 10pt; text-align: right; text-indent: 0">69,556</TD><TD STYLE="padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="padding: 0; font-size: 10pt; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="padding: 0; font-size: 10pt; text-align: right; text-indent: 0">68,621</TD><TD STYLE="padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding: 0; font-size: 10pt; text-align: left; text-indent: 0">Less: Treasury Stock, at cost (2,329,850 shares)</TD><TD STYLE="padding: 0; font-size: 10pt; text-indent: 0">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; padding: 0; font-size: 10pt; text-align: right; text-indent: 0">(11,732</TD><TD STYLE="padding: 0; font-size: 10pt; text-align: left; text-indent: 0">)</TD><TD STYLE="padding: 0; font-size: 10pt; text-indent: 0">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; padding: 0; font-size: 10pt; text-align: right; text-indent: 0">(11,732</TD><TD STYLE="padding: 0; font-size: 10pt; text-align: left; text-indent: 0">)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="padding: 0 0 0 0.25in; font-size: 10pt; text-align: left; text-indent: 0">TOTAL STOCKHOLDERS' EQUITY</TD><TD STYLE="padding: 0; font-size: 10pt; text-indent: 0">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; padding: 0; font-size: 10pt; text-align: right; text-indent: 0">57,824</TD><TD STYLE="padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="padding: 0; font-size: 10pt; text-indent: 0">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 1pt solid; padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="border-bottom: Black 1pt solid; padding: 0; font-size: 10pt; text-align: right; text-indent: 0">56,889</TD><TD STYLE="padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="padding: 0 0 0 0.25in; font-size: 10pt; text-align: left; text-indent: 0">TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY</TD><TD STYLE="padding: 0; font-size: 10pt; text-indent: 0">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; padding: 0; font-size: 10pt; text-align: left; text-indent: 0">$</TD><TD STYLE="border-bottom: Black 2.5pt double; padding: 0; font-size: 10pt; text-align: right; text-indent: 0">69,745</TD><TD STYLE="padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD><TD STYLE="padding: 0; font-size: 10pt; text-indent: 0">&nbsp;</TD>
    <TD STYLE="border-bottom: Black 2.5pt double; padding: 0; font-size: 10pt; text-align: left; text-indent: 0">$</TD><TD STYLE="border-bottom: Black 2.5pt double; padding: 0; font-size: 10pt; text-align: right; text-indent: 0">70,862</TD><TD STYLE="padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD></TR>
</TABLE>

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<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="9" NOWRAP STYLE="font-size: 10pt; text-align: center; padding: 0; text-indent: 0">NAPCO SECURITY TECHNOLOGIES, INC. AND SUBSIDIARIES</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding: 0; font-size: 10pt; text-align: center; text-indent: 0">CONDENSED CONSOLIDATED STATEMENTS OF INCOME (unaudited)</TD></TR>
</TABLE>

<P STYLE="margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font-size: 10pt; padding: 0; text-indent: 0">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD COLSPAN="6" NOWRAP STYLE="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid; padding: 0; text-indent: 0">Three months ended September 30,</TD><TD NOWRAP STYLE="padding: 0; font-size: 10pt; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font-size: 10pt; padding: 0; text-indent: 0">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid; padding: 0; text-indent: 0">2017</TD><TD NOWRAP STYLE="padding: 0; font-size: 10pt; text-indent: 0">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid; padding: 0; text-indent: 0">2016</TD><TD NOWRAP STYLE="padding: 0; font-size: 10pt; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font-size: 10pt; padding: 0; text-indent: 0">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD COLSPAN="6" NOWRAP STYLE="font-size: 10pt; text-align: center; padding: 0; text-indent: 0">(In thousands, except share and per share data)</TD><TD NOWRAP STYLE="font-size: 10pt; padding: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD NOWRAP STYLE="width: 74%; font-size: 10pt; text-align: left; padding: 0; text-indent: 0">Net sales</TD><TD NOWRAP STYLE="width: 1%; font-size: 10pt; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 1%; font-size: 10pt; text-align: left; padding: 0; text-indent: 0">$</TD><TD NOWRAP STYLE="width: 10%; font-size: 10pt; text-align: right; padding: 0; text-indent: 0">21,174</TD><TD NOWRAP STYLE="width: 1%; font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD NOWRAP STYLE="width: 1%; font-size: 10pt; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 1%; font-size: 10pt; text-align: left; padding: 0; text-indent: 0">$</TD><TD NOWRAP STYLE="width: 10%; font-size: 10pt; text-align: right; padding: 0; text-indent: 0">20,168</TD><TD NOWRAP STYLE="width: 1%; font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD NOWRAP STYLE="font-size: 10pt; padding: 0; text-indent: 0">Cost of sales</TD><TD NOWRAP STYLE="font-size: 10pt; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD><TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding: 0; font-size: 10pt; text-align: right; text-indent: 0">14,295</TD><TD NOWRAP STYLE="padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD><TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding: 0; font-size: 10pt; text-align: right; text-indent: 0">13,716</TD><TD NOWRAP STYLE="padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD NOWRAP STYLE="font-size: 10pt; text-align: left; padding: 0 0 0 0.25in; text-indent: 0">Gross Profit</TD><TD NOWRAP STYLE="font-size: 10pt; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; text-align: right; padding: 0; text-indent: 0">6,879</TD><TD NOWRAP STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; text-align: right; padding: 0; text-indent: 0">6,452</TD><TD NOWRAP STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD NOWRAP STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">Selling, general, and administrative expenses</TD><TD NOWRAP STYLE="font-size: 10pt; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD><TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding: 0; font-size: 10pt; text-align: right; text-indent: 0">5,820</TD><TD NOWRAP STYLE="padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD><TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding: 0; font-size: 10pt; text-align: right; text-indent: 0">5,736</TD><TD NOWRAP STYLE="padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD NOWRAP STYLE="font-size: 10pt; text-align: left; padding: 0 0 0 0.25in; text-indent: 0">Operating Income</TD><TD NOWRAP STYLE="font-size: 10pt; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; text-align: right; padding: 0; text-indent: 0">1,059</TD><TD NOWRAP STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; text-align: right; padding: 0; text-indent: 0">716</TD><TD NOWRAP STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD NOWRAP STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">Other expense:</TD><TD NOWRAP STYLE="font-size: 10pt; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; text-align: right; padding: 0; text-indent: 0">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; text-align: right; padding: 0; text-indent: 0">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD NOWRAP STYLE="font-size: 10pt; text-align: left; padding: 0 0 0 0.125in; text-indent: 0">Interest, net</TD><TD NOWRAP STYLE="font-size: 10pt; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD><TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding: 0; font-size: 10pt; text-align: right; text-indent: 0">26</TD><TD NOWRAP STYLE="padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD><TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding: 0; font-size: 10pt; text-align: right; text-indent: 0">24</TD><TD NOWRAP STYLE="padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD NOWRAP STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">Income before Income Taxes</TD><TD NOWRAP STYLE="font-size: 10pt; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; text-align: right; padding: 0; text-indent: 0">1,033</TD><TD NOWRAP STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; text-align: right; padding: 0; text-indent: 0">692</TD><TD NOWRAP STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD NOWRAP STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">Income tax expense</TD><TD NOWRAP STYLE="font-size: 10pt; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD><TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding: 0; font-size: 10pt; text-align: right; text-indent: 0">143</TD><TD NOWRAP STYLE="padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD><TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding: 0; font-size: 10pt; text-align: right; text-indent: 0">124</TD><TD NOWRAP STYLE="padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD NOWRAP STYLE="font-size: 10pt; text-align: left; padding: 0 0 0 0in; text-indent: 0">Net Income</TD><TD NOWRAP STYLE="font-size: 10pt; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 2.5pt double; padding: 0; font-size: 10pt; text-align: left; text-indent: 0">$</TD><TD NOWRAP STYLE="border-bottom: Black 2.5pt double; padding: 0; font-size: 10pt; text-align: right; text-indent: 0">890</TD><TD NOWRAP STYLE="padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 2.5pt double; padding: 0; font-size: 10pt; text-align: left; text-indent: 0">$</TD><TD NOWRAP STYLE="border-bottom: Black 2.5pt double; padding: 0; font-size: 10pt; text-align: right; text-indent: 0">568</TD><TD NOWRAP STYLE="padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD NOWRAP STYLE="font-size: 10pt; padding: 0; text-indent: 0">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; text-align: right; padding: 0; text-indent: 0">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; text-align: right; padding: 0; text-indent: 0">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD NOWRAP STYLE="font-size: 10pt; padding: 0; text-indent: 0">Net Income per share:</TD><TD NOWRAP STYLE="font-size: 10pt; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; text-align: right; padding: 0; text-indent: 0">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; text-align: right; padding: 0; text-indent: 0">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD NOWRAP STYLE="font-size: 10pt; padding: 0 0 0 0.125in; text-indent: 0">Basic</TD><TD NOWRAP STYLE="font-size: 10pt; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">$</TD><TD NOWRAP STYLE="font-size: 10pt; text-align: right; padding: 0; text-indent: 0">0.05</TD><TD NOWRAP STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">$</TD><TD NOWRAP STYLE="font-size: 10pt; text-align: right; padding: 0; text-indent: 0">0.03</TD><TD NOWRAP STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD NOWRAP STYLE="font-size: 10pt; padding: 0 0 0 0.125in; text-indent: 0">Diluted</TD><TD NOWRAP STYLE="font-size: 10pt; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">$</TD><TD NOWRAP STYLE="font-size: 10pt; text-align: right; padding: 0; text-indent: 0">0.05</TD><TD NOWRAP STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">$</TD><TD NOWRAP STYLE="font-size: 10pt; text-align: right; padding: 0; text-indent: 0">0.03</TD><TD NOWRAP STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD NOWRAP STYLE="font-size: 10pt; padding: 0; text-indent: 0">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; text-align: right; padding: 0; text-indent: 0">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; text-align: right; padding: 0; text-indent: 0">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD NOWRAP STYLE="font-size: 10pt; padding: 0; text-indent: 0">Weighted average number of shares outstanding:</TD><TD NOWRAP STYLE="font-size: 10pt; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; text-align: right; padding: 0; text-indent: 0">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; text-align: right; padding: 0; text-indent: 0">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD NOWRAP STYLE="font-size: 10pt; padding: 0 0 0 0.125in; text-indent: 0">Basic</TD><TD NOWRAP STYLE="font-size: 10pt; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; text-align: right; padding: 0; text-indent: 0">18,846,000</TD><TD NOWRAP STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; text-align: right; padding: 0; text-indent: 0">18,787,000</TD><TD NOWRAP STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD NOWRAP STYLE="font-size: 10pt; padding: 0 0 0 0.125in; text-indent: 0">Diluted</TD><TD NOWRAP STYLE="font-size: 10pt; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; text-align: right; padding: 0; text-indent: 0">18,879,000</TD><TD NOWRAP STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; text-align: right; padding: 0; text-indent: 0">18,838,000</TD><TD NOWRAP STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD></TR>
</TABLE>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="padding: 0; font-size: 10pt; text-align: center; text-indent: 0">NAPCO SECURITY TECHNOLOGIES, INC.</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="9" NOWRAP STYLE="font-size: 10pt; text-align: center; padding: 0; text-indent: 0">NON-GAAP MEASURES OF PERFORMANCE* (Unaudited)</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD COLSPAN="9" NOWRAP STYLE="font-size: 10pt; text-align: center; padding: 0; text-indent: 0">(in thousands)</TD></TR>
</TABLE>

<P STYLE="margin: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 80%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font-size: 10pt; padding: 0; text-indent: 0">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD COLSPAN="6" NOWRAP STYLE="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid; padding: 0; text-indent: 0"><P STYLE="margin-top: 0; margin-bottom: 0">3 months ended September</P>
                                                                                <P STYLE="margin-top: 0; margin-bottom: 0">30,</P></TD><TD NOWRAP STYLE="padding: 0; font-size: 10pt; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD NOWRAP STYLE="font-size: 10pt; padding: 0; text-indent: 0">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid; padding: 0; text-indent: 0">2017</TD><TD NOWRAP STYLE="padding: 0; font-size: 10pt; text-indent: 0">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD COLSPAN="2" NOWRAP STYLE="font-size: 10pt; text-align: center; border-bottom: Black 1pt solid; padding: 0; text-indent: 0">2016</TD><TD NOWRAP STYLE="padding: 0; font-size: 10pt; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD NOWRAP STYLE="width: 74%; font-size: 10pt; text-align: left; padding: 0; text-indent: 0">Net income (GAAP)</TD><TD NOWRAP STYLE="width: 1%; font-size: 10pt; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 1%; font-size: 10pt; text-align: left; padding: 0; text-indent: 0">$</TD><TD NOWRAP STYLE="width: 10%; font-size: 10pt; text-align: right; padding: 0; text-indent: 0">890</TD><TD NOWRAP STYLE="width: 1%; font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD NOWRAP STYLE="width: 1%; font-size: 10pt; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD NOWRAP STYLE="width: 1%; font-size: 10pt; text-align: left; padding: 0; text-indent: 0">$</TD><TD NOWRAP STYLE="width: 10%; font-size: 10pt; text-align: right; padding: 0; text-indent: 0">568</TD><TD NOWRAP STYLE="width: 1%; font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD NOWRAP STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">Add back provision for income taxes</TD><TD NOWRAP STYLE="font-size: 10pt; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; text-align: right; padding: 0; text-indent: 0">143</TD><TD NOWRAP STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; text-align: right; padding: 0; text-indent: 0">124</TD><TD NOWRAP STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD NOWRAP STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">Add back interest expense</TD><TD NOWRAP STYLE="font-size: 10pt; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD><TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding: 0; font-size: 10pt; text-align: right; text-indent: 0">26</TD><TD NOWRAP STYLE="padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD><TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding: 0; font-size: 10pt; text-align: right; text-indent: 0">24</TD><TD NOWRAP STYLE="padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD NOWRAP STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">Operating Income (GAAP)</TD><TD NOWRAP STYLE="font-size: 10pt; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; text-align: right; padding: 0; text-indent: 0">1,059</TD><TD NOWRAP STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; text-align: right; padding: 0; text-indent: 0">716</TD><TD NOWRAP STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD NOWRAP STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">Adjustments for non-GAAP measures of performance:</TD><TD NOWRAP STYLE="font-size: 10pt; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; text-align: right; padding: 0; text-indent: 0">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; text-align: right; padding: 0; text-indent: 0">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD NOWRAP STYLE="font-size: 10pt; text-align: left; padding: 0 0 0 0.125in; text-indent: 0">Add back amortization of acquisition-related intangibles</TD><TD NOWRAP STYLE="font-size: 10pt; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; text-align: right; padding: 0; text-indent: 0">93</TD><TD NOWRAP STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; text-align: right; padding: 0; text-indent: 0">110</TD><TD NOWRAP STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD NOWRAP STYLE="font-size: 10pt; text-align: left; padding: 0 0 0 0.125in; text-indent: 0">Add back stock-based compensation expense</TD><TD NOWRAP STYLE="font-size: 10pt; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD><TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding: 0; font-size: 10pt; text-align: right; text-indent: 0">33</TD><TD NOWRAP STYLE="padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD><TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding: 0; font-size: 10pt; text-align: right; text-indent: 0">33</TD><TD NOWRAP STYLE="padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD NOWRAP STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">Adjusted non-GAAP operating income</TD><TD NOWRAP STYLE="font-size: 10pt; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; text-align: right; padding: 0; text-indent: 0">1,185</TD><TD NOWRAP STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; text-align: right; padding: 0; text-indent: 0">859</TD><TD NOWRAP STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD NOWRAP STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">Add back depreciation and other amortization</TD><TD NOWRAP STYLE="font-size: 10pt; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD><TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding: 0; font-size: 10pt; text-align: right; text-indent: 0">237</TD><TD NOWRAP STYLE="padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD><TD NOWRAP STYLE="border-bottom: Black 1pt solid; padding: 0; font-size: 10pt; text-align: right; text-indent: 0">212</TD><TD NOWRAP STYLE="padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD NOWRAP STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization)</TD><TD NOWRAP STYLE="font-size: 10pt; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 2.5pt double; padding: 0; font-size: 10pt; text-align: left; text-indent: 0">$</TD><TD NOWRAP STYLE="border-bottom: Black 2.5pt double; padding: 0; font-size: 10pt; text-align: right; text-indent: 0">1,422</TD><TD NOWRAP STYLE="padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD NOWRAP STYLE="border-bottom: Black 2.5pt double; padding: 0; font-size: 10pt; text-align: left; text-indent: 0">$</TD><TD NOWRAP STYLE="border-bottom: Black 2.5pt double; padding: 0; font-size: 10pt; text-align: right; text-indent: 0">1,071</TD><TD NOWRAP STYLE="padding: 0; font-size: 10pt; text-align: left; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD NOWRAP STYLE="font-size: 10pt; padding: 0; text-indent: 0">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; text-align: right; padding: 0; text-indent: 0">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; text-align: right; padding: 0; text-indent: 0">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD NOWRAP STYLE="font-size: 10pt; padding: 0; text-indent: 0">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; text-align: right; padding: 0; text-indent: 0">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; text-align: right; padding: 0; text-indent: 0">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD NOWRAP STYLE="font-size: 10pt; padding: 0; text-indent: 0">Adjusted EBITDA* per Diluted Share</TD><TD NOWRAP STYLE="font-size: 10pt; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">$</TD><TD NOWRAP STYLE="font-size: 10pt; text-align: right; padding: 0; text-indent: 0">0.08</TD><TD NOWRAP STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">$</TD><TD NOWRAP STYLE="font-size: 10pt; text-align: right; padding: 0; text-indent: 0">0.06</TD><TD NOWRAP STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD NOWRAP STYLE="font-size: 10pt; padding: 0; text-indent: 0">Weighted average number of Diluted Shares outstanding</TD><TD NOWRAP STYLE="font-size: 10pt; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; text-align: right; padding: 0; text-indent: 0">18,879,000</TD><TD NOWRAP STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; text-align: right; padding: 0; text-indent: 0">18,838,000</TD><TD NOWRAP STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD NOWRAP STYLE="font-size: 10pt; padding: 0; text-indent: 0">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; text-align: right; padding: 0; text-indent: 0">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD NOWRAP STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; text-align: right; padding: 0; text-indent: 0">&nbsp;</TD><TD NOWRAP STYLE="font-size: 10pt; text-align: left; padding: 0; text-indent: 0">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">* Non-GAAP Information. Certain non-GAAP measures are included
in this press release, including EBITDA, non-GAAP operating income and Adjusted EBITDA. We define EBITDA as GAAP net income plus
income tax expense (benefit), net interest expense and depreciation and amortization expense. Non-GAAP operating income does not
include impairment of goodwill, amortization of intangibles, restructuring charges, stock-based compensation expense and other
infrequent or unusual charges. These non-GAAP measures are provided to enhance the user's overall understanding of our financial
performance. By excluding these charges our non-GAAP results provide information to management and investors that is useful in
assessing NAPCO's core operating performance and in comparing our results of operations on a consistent basis from period to period.
The presentation of this information is not meant to be a substitute for the corresponding financial measures prepared in accordance
with generally accepted accounting principles. Investors are encouraged to review the reconciliation of GAAP to non-GAAP financial
measures included in the above.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Contacts:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Patrick McKillop</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Director of Investor Relations</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">NAPCO Security Technologies, Inc.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">OP: 800-645-9445 x 374</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">CP: 516-404-3597</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; color: #DE4E3A"><U>pmckillop@napcosecurity.com</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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