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Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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<SEC-DOCUMENT>0001144204-07-048128.txt : 20070906
<SEC-HEADER>0001144204-07-048128.hdr.sgml : 20070906
<ACCEPTANCE-DATETIME>20070906091005
ACCESSION NUMBER:		0001144204-07-048128
CONFORMED SUBMISSION TYPE:	11-K
PUBLIC DOCUMENT COUNT:		4
CONFORMED PERIOD OF REPORT:	20061231
FILED AS OF DATE:		20070906
DATE AS OF CHANGE:		20070906

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			FREQUENCY ELECTRONICS INC
		CENTRAL INDEX KEY:			0000039020
		STANDARD INDUSTRIAL CLASSIFICATION:	INSTRUMENTS FOR MEAS & TESTING OF ELECTRICITY & ELEC SIGNALS [3825]
		IRS NUMBER:				111986657
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			0430

	FILING VALUES:
		FORM TYPE:		11-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-08061
		FILM NUMBER:		071101438

	BUSINESS ADDRESS:	
		STREET 1:		55 CHARLES LINDBERGH BLVD
		CITY:			MITCHEL FIELD
		STATE:			NY
		ZIP:			11553
		BUSINESS PHONE:		5167944500

	MAIL ADDRESS:	
		STREET 1:		55 CHARLES LINDBERGH BOULEVARD
		CITY:			MITCHELL FIELD
		STATE:			NY
		ZIP:			11553
</SEC-HEADER>
<DOCUMENT>
<TYPE>11-K
<SEQUENCE>1
<FILENAME>v087072_11-k.htm
<TEXT>
<html>
  <head>
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</title>
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  <body bgcolor="#ffffff">
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>UNITED
      STATES SECURITIES AND EXCHANGE COMMISSION</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Washington,
      DC 20549-1004</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>FORM
      11-K</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong><font style="DISPLAY: inline; FONT-FAMILY: Wingdings">x</font>
      ANNUAL REPORT PURSUANT
      TO SECTION 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">For
      the
      fiscal year ended December 31, 2006</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">OR</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong><font style="DISPLAY: inline; FONT-FAMILY: Wingdings">o</font></strong></font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>TRANSITION
      REPORT PURSUANT TO SECTION 15(D) OF THE SECURITIES EXCHANGE ACT OF
      1934</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">For
      the
      transition period from-------------------to----------------------</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Commission
      file number 1-8061</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>FREQUENCY
      ELECTRONICS, INC. 401(k) SAVINGS PLAN</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">(Full
      title of the plan)</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman"><strong>Frequency
      Electronics, Inc.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">55
      Charles Lindbergh Blvd., Mitchel Field, NY 11553</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">(Name
      of
      issuer of the securities held pursuant to</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">the
      plan
      and the address of its principal</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">executive
      offices)</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Registrant's
      telephone number, including area code (516) 794-4500</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Notices
      and communications from the Securities and Exchange Commission</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">relative
      to this report should be forwarded to:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Alan
      Miller</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Chief
      Financial Officer</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Frequency
      Electronics, Inc.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">55
      Charles Lindbergh Blvd.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 12pt; FONT-FAMILY: Times New Roman">Mitchel
      Field, NY 11553</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
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        </div>
      </div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>FREQUENCY
      ELECTRONICS, INC.</u></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>401(k)
      SAVINGS PLAN</u></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>YEAR
      ENDED DECEMBER 31, 2006</u></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>CONTENTS</u></font><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
      <div align="left">
        <div>
          <div>
            <table cellpadding="0" cellspacing="0" width="100%">

                <tr>
                  <td align="left" valign="top" width="6%">&#160;</td>
                  <td align="left" valign="top" width="16%">&#160;</td>
                  <td align="left" valign="top" width="37%">&#160;</td>
                  <td valign="top" width="20%">&#160;</td>
                </tr>
                <tr>
                  <td align="left" valign="top" width="6%">&#160;</td>
                  <td align="left" valign="top" width="16%">&#160;</td>
                  <td align="left" valign="top" width="37%">&#160;</td>
                  <td valign="top" width="20%">&#160;<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Page</u></font></td>
                </tr>
                <tr bgcolor="#ccffcc">
                  <td align="left" colspan="3" valign="top" width="59%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">a)
                      FINANCIAL STATEMENTS:</font></div>
                  </td>
                  <td valign="top" width="20%">&#160;</td>
                </tr>
                <tr bgcolor="white">
                  <td align="left" valign="top" width="6%">&#160;</td>
                  <td align="left" valign="top" width="16%">&#160;</td>
                  <td align="left" valign="top" width="37%">&#160;</td>
                  <td valign="top" width="20%">&#160;</td>
                </tr>
                <tr bgcolor="#ccffcc">
                  <td align="left" valign="top" width="6%">&#160;</td>
                  <td align="left" colspan="2" valign="top" width="53%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Report
                      of Independent Registered Public Accounting Firm</font></div>
                  </td>
                  <td valign="top" width="20%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3</font></div>
                  </td>
                </tr>
                <tr bgcolor="white">
                  <td align="left" valign="top" width="6%">&#160;</td>
                  <td align="left" valign="top" width="16%">&#160;</td>
                  <td align="left" valign="top" width="37%">&#160;</td>
                  <td valign="top" width="20%">&#160;</td>
                </tr>
                <tr bgcolor="#ccffcc">
                  <td align="left" valign="top" width="6%">&#160;</td>
                  <td align="left" colspan="2" valign="top" width="53%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Statements
                      of Net Assets Available for Benefits</font></div>
                  </td>
                  <td valign="top" width="20%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4</font></div>
                  </td>
                </tr>
                <tr bgcolor="white">
                  <td align="left" valign="top" width="6%">&#160;</td>
                  <td align="left" valign="top" width="16%">&#160;</td>
                  <td align="left" valign="top" width="37%">&#160;</td>
                  <td valign="top" width="20%">&#160;</td>
                </tr>
                <tr bgcolor="#ccffcc">
                  <td align="left" valign="top" width="6%">&#160;</td>
                  <td align="left" colspan="2" valign="top" width="53%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Statement
                      of Changes in Net Assets Available for Benefits</font></div>
                  </td>
                  <td valign="top" width="20%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5</font></div>
                  </td>
                </tr>
                <tr bgcolor="white">
                  <td align="left" valign="top" width="6%">&#160;</td>
                  <td align="left" valign="top" width="16%">&#160;</td>
                  <td align="left" valign="top" width="37%">&#160;</td>
                  <td valign="top" width="20%">&#160;</td>
                </tr>
                <tr bgcolor="#ccffcc">
                  <td align="left" valign="top" width="6%">&#160;</td>
                  <td align="left" colspan="2" valign="top" width="53%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Notes
                      to Financial Statements</font></div>
                  </td>
                  <td valign="top" width="20%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">6
                      -
                      9</font></div>
                  </td>
                </tr>
                <tr bgcolor="white">
                  <td align="left" valign="top" width="6%">&#160;</td>
                  <td align="left" valign="top" width="16%">&#160;</td>
                  <td align="left" valign="top" width="37%">&#160;</td>
                  <td valign="top" width="20%">&#160;</td>
                </tr>
                <tr bgcolor="#ccffcc">
                  <td align="left" valign="top" width="6%">&#160;</td>
                  <td align="left" colspan="2" valign="top" width="53%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SUPPLEMENTAL
                      SCHEDULE:</font></div>
                  </td>
                  <td valign="top" width="20%">&#160;</td>
                </tr>
                <tr bgcolor="white">
                  <td align="left" valign="top" width="6%">&#160;</td>
                  <td align="left" valign="top" width="16%">&#160;</td>
                  <td align="left" valign="top" width="37%">&#160;</td>
                  <td valign="top" width="20%">&#160;</td>
                </tr>
                <tr bgcolor="#ccffcc">
                  <td align="left" valign="top" width="6%">&#160;</td>
                  <td align="left" colspan="2" valign="top" width="53%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Schedule
                      H, Line 4i: Schedule of Assets (Held at End of Year)</font></div>
                  </td>
                  <td valign="top" width="20%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10
                      </font></div>
                  </td>
                </tr>
                <tr bgcolor="white">
                  <td align="left" valign="top" width="6%">&#160;</td>
                  <td align="left" valign="top" width="16%">&#160;</td>
                  <td align="left" valign="top" width="37%">&#160;</td>
                  <td valign="top" width="20%">&#160;</td>
                </tr>
                <tr bgcolor="#ccffcc">
                  <td align="left" colspan="2" valign="top" width="22%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">b)
                      EXHIBITS:</font></div>
                  </td>
                  <td align="left" valign="top" width="37%">&#160;</td>
                  <td valign="top" width="20%">&#160;</td>
                </tr>
                <tr bgcolor="white">
                  <td align="left" valign="top" width="6%">&#160;</td>
                  <td align="left" valign="top" width="16%">&#160;</td>
                  <td align="left" valign="top" width="37%">&#160;</td>
                  <td valign="top" width="20%">&#160;</td>
                </tr>
                <tr bgcolor="#ccffcc">
                  <td align="left" valign="top" width="6%">&#160;</td>
                  <td align="left" valign="top" width="16%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Exhibit
                      23.1</font></div>
                  </td>
                  <td align="left" valign="top" width="37%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Consent
                      of Independent Registered Public Accounting Firm</font></div>
                  </td>
                  <td valign="top" width="20%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">11</font></div>
                  </td>
                </tr>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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          </tr>

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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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      Plan.
      Pursuant to the requirements of the Securities Exchange Act of 1934, the
      trustees have duly caused this annual report to be signed on its behalf by
      the
      undersigned hereunto duly authorized.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
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            <td>&#160;</td>
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            <td><font size="2">/s/Markus Hechler</font></td>
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            <td><font size="2">/s/Marvin Meirs</font></td>
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            <td colspan="2">&#160;</td>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
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        <div style="WIDTH: 100%; TEXT-ALIGN: center">
        </div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
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      of Independent Registered Public Accounting Firm</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">To
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Frequency
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">401(k)
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      have
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      Frequency Electronics, Inc. 401(k) Savings Plan (the "Plan") as of December
      31,
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      and
      2005, and the related statement of changes in net assets available for benefits
      for the year ended December 31, 2006. These financial statements are the
      responsibility of the Plan's management. Our responsibility is to express an
      opinion on these financial statements based on our audits.</font></div>
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      conducted our audits in accordance with the standards of the Public Company
      Accounting Oversight Board (United States). Those standards require that we
      plan
      and perform the audit to obtain reasonable assurance about whether the financial
      statements are free of material misstatement. An audit includes examining,
      on a
      test basis, evidence supporting the amounts and disclosures in the financial
      statements. An audit also includes assessing the accounting principles used
      and
      significant estimates made by management, as well as evaluating the overall
      financial statement presentation. We believe that our audits provide a
      reasonable basis for our opinion.</font></div>
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      our
      opinion, the financial statements referred to above, present fairly, in all
      material respects, the net assets available for benefits of the Plan as of
      December 31, 2006 and 2005, and the changes in net assets available for benefits
      for the year ended December 31, 2006 in conformity with U.S. generally accepted
      accounting principles.</font></div>
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      audits were performed for the purpose of forming an opinion on the basic
      financial statements taken as a whole. The supplemental schedule of assets
      (held
      at end of year) at December 31, 2006 is presented for the purpose of additional
      analysis and is not a required part of the basic financial statements but is
      supplementary information required by the Department of Labor's Rules and
      Regulations for Reporting and Disclosure under the Employee Retirement Income
      Security Act of 1974. This supplemental schedule is the responsibility of the
      Plan's management. The supplemental schedule has been subjected to the auditing
      procedures applied in the audits of the basic financial statements and, in
      our
      opinion, is fairly stated in all material respects in relation to the basic
      financial statements taken as a whole.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>/s/
      Holtz Rubenstein Reminick LLP</u></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Holtz
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">July
      13,
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Melville,
      New York</font></div>
    <div>&#160;</div>
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      <div id="FTR">
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      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">3</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
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        </div>
      </div>
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        </div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>FREQUENCY
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>401(k)
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>STATEMENTS
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
      <div>
        <table cellpadding="0" cellspacing="0" id="ftable" width="100%">

            <tr>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
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              <td align="left" valign="bottom" width="71%" style="border-bottom: #ffffff solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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              <td width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
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              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" colspan="2" valign="bottom" width="11%" style="border-bottom: black thin solid;">
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              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
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            <tr>
              <td align="left" valign="bottom" width="71%">&#160;</td>
              <td width="2%">&#160;</td>
              <td align="left" valign="bottom" width="1%">&#160;</td>
              <td align="right" valign="bottom" width="11%">&#160;</td>
              <td align="left" valign="bottom" width="2%">&#160;</td>
              <td align="left" valign="bottom" width="1%">&#160;</td>
              <td align="right" valign="bottom" width="11%">&#160;</td>
              <td align="left" valign="bottom" width="1%">&#160;</td>
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            <tr bgcolor="#ccffcc">
              <td align="left" valign="bottom" width="71%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">ASSETS:</font></div>
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              <td align="left" valign="bottom" width="1%">&#160;</td>
              <td align="right" valign="bottom" width="11%">&#160;</td>
              <td align="left" valign="bottom" width="2%">&#160;</td>
              <td align="left" valign="bottom" width="1%">&#160;</td>
              <td align="right" valign="bottom" width="11%">&#160;</td>
              <td align="left" valign="bottom" width="1%">&#160;</td>
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            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%">&#160;</td>
              <td width="2%">&#160;</td>
              <td align="left" valign="bottom" width="1%">&#160;</td>
              <td align="right" valign="bottom" width="11%">&#160;</td>
              <td align="left" valign="bottom" width="2%">&#160;</td>
              <td align="left" valign="bottom" width="1%">&#160;</td>
              <td align="right" valign="bottom" width="11%">&#160;</td>
              <td align="left" valign="bottom" width="1%">&#160;</td>
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              <td align="left" valign="bottom" width="71%" style="border-bottom: #ccffcc;">
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              <td width="2%" style="border-bottom: #ccffcc;">&#160;</td>
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              <td align="left" valign="bottom" width="2%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">84,164</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
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            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%">&#160;</td>
              <td width="2%">&#160;</td>
              <td align="left" valign="bottom" width="1%">&#160;</td>
              <td align="right" valign="bottom" width="11%">&#160;</td>
              <td align="left" valign="bottom" width="2%">&#160;</td>
              <td align="left" valign="bottom" width="1%">&#160;</td>
              <td align="right" valign="bottom" width="11%">&#160;</td>
              <td align="left" valign="bottom" width="1%">&#160;</td>
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              <td align="left" valign="bottom" width="71%" style="border-bottom: #ccffcc;">
                <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Investments,
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              <td width="2%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">
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              <td align="left" valign="bottom" width="2%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">11,544,869</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
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            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%">&#160;</td>
              <td width="2%">&#160;</td>
              <td align="left" valign="bottom" width="1%">&#160;</td>
              <td align="right" valign="bottom" width="11%">&#160;</td>
              <td align="left" valign="bottom" width="2%">&#160;</td>
              <td align="left" valign="bottom" width="1%">&#160;</td>
              <td align="right" valign="bottom" width="11%">&#160;</td>
              <td align="left" valign="bottom" width="1%">&#160;</td>
            </tr>
            <tr bgcolor="#ccffcc">
              <td align="left" valign="bottom" width="71%" style="border-bottom: #ccffcc;">
                <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Loans
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              <td width="2%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">376,585</font></div>
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              <td align="left" valign="bottom" width="2%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">391,081</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%">&#160;</td>
              <td width="2%">&#160;</td>
              <td align="left" valign="bottom" width="1%">&#160;</td>
              <td align="right" valign="bottom" width="11%">&#160;</td>
              <td align="left" valign="bottom" width="2%">&#160;</td>
              <td align="left" valign="bottom" width="1%">&#160;</td>
              <td align="right" valign="bottom" width="11%">&#160;</td>
              <td align="left" valign="bottom" width="1%">&#160;</td>
            </tr>
            <tr bgcolor="#ccffcc">
              <td align="left" valign="bottom" width="71%" style="border-bottom: #ccffcc;">
                <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Contribution
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              <td width="2%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">90,505</font></div>
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              <td align="left" valign="bottom" width="2%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">82,716</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%">&#160;</td>
              <td width="2%">&#160;</td>
              <td align="left" valign="bottom" width="1%">&#160;</td>
              <td align="right" valign="bottom" width="11%">&#160;</td>
              <td align="left" valign="bottom" width="2%">&#160;</td>
              <td align="left" valign="bottom" width="1%">&#160;</td>
              <td align="right" valign="bottom" width="11%">&#160;</td>
              <td align="left" valign="bottom" width="1%">&#160;</td>
            </tr>
            <tr bgcolor="#ccffcc">
              <td align="left" valign="bottom" width="71%" style="border-bottom: #ccffcc;">
                <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Contribution
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              <td width="2%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">23,796</font></div>
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              <td align="left" valign="bottom" width="2%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">-</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%">&#160;</td>
              <td width="2%">&#160;</td>
              <td align="left" valign="bottom" width="1%">&#160;</td>
              <td align="right" valign="bottom" width="11%">&#160;</td>
              <td align="left" valign="bottom" width="2%">&#160;</td>
              <td align="left" valign="bottom" width="1%">&#160;</td>
              <td align="right" valign="bottom" width="11%">&#160;</td>
              <td align="left" valign="bottom" width="1%">&#160;</td>
            </tr>
            <tr bgcolor="#ccffcc">
              <td align="left" valign="bottom" width="71%" style="border-bottom: #ccffcc thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Other
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              </td>
              <td width="2%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">7,513</font></div>
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              <td align="left" valign="bottom" width="2%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">-</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%">&#160;</td>
              <td width="2%">&#160;</td>
              <td align="left" valign="bottom" width="1%">&#160;</td>
              <td align="right" valign="bottom" width="11%">&#160;</td>
              <td align="left" valign="bottom" width="2%">&#160;</td>
              <td align="left" valign="bottom" width="1%">&#160;</td>
              <td align="right" valign="bottom" width="11%">&#160;</td>
              <td align="left" valign="bottom" width="1%">&#160;</td>
            </tr>
            <tr bgcolor="#ccffcc">
              <td valign="bottom" width="71%" style="border-bottom: #ccffcc thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                  Assets Available for Benefits at Fair Value</font></div>
              </td>
              <td width="2%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">14,272,113</font></div>
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              <td align="left" valign="bottom" width="2%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">12,102,830</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td valign="bottom" width="71%">&#160;</td>
              <td width="2%">&#160;</td>
              <td align="left" valign="bottom" width="1%">&#160;</td>
              <td align="right" valign="bottom" width="11%">&#160;</td>
              <td align="left" valign="bottom" width="2%">&#160;</td>
              <td align="left" valign="bottom" width="1%">&#160;</td>
              <td align="right" valign="bottom" width="11%">&#160;</td>
              <td align="left" valign="bottom" width="1%">&#160;</td>
            </tr>
            <tr bgcolor="#ccffcc">
              <td valign="bottom" width="71%" style="border-bottom: #ccffcc thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Adjustment
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                  Responsive Investment Contract</font></div>
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              <td width="2%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">45,225</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">-</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="border-bottom: white;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
              </td>
              <td width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            </tr>
            <tr bgcolor="#ccffcc">
              <td align="left" valign="bottom" width="71%" style="border-bottom: #ccffcc thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                  Assets Available for Benefits</font></div>
              </td>
              <td width="2%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
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      accompanying notes are an integral part of these financial
      statements.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: -18pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: -36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: -18pt" align="center"><br></div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
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            <tr>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
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            <tr>
              <td align="left" valign="bottom" width="85%" style="border-bottom: medium none;">
                <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Additions
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              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
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            <tr>
              <td align="left" valign="bottom" width="85%" style="border-bottom: medium none;">
                <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Contributions:</font></div>
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              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
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            <tr bgcolor="#ccffcc">
              <td align="left" valign="bottom" width="85%" style="border-bottom: #ccffcc;">
                <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Participant
                  contributions</font></div>
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              <td width="2%" style="border-bottom: #ccffcc;">&#160;</td>
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                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">
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              <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
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            <tr bgcolor="white">
              <td align="left" valign="bottom" width="85%" style="border-bottom: white;">
                <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Rollover
                  contributions</font></div>
              </td>
              <td width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">98,346</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            </tr>
            <tr bgcolor="#ccffcc">
              <td align="left" valign="bottom" width="85%" style="border-bottom: #ccffcc thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Employer
                  contributions</font></div>
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              <td width="2%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">438,528</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
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            <tr bgcolor="white">
              <td align="left" valign="bottom" width="85%" style="border-bottom: white thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                  Contributions</font></div>
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              <td width="2%" style="border-bottom: white thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,524,405</font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
            </tr>
            <tr bgcolor="#ccffcc">
              <td align="left" valign="bottom" width="85%" style="border-bottom: #ccffcc;">&#160;</td>
              <td width="2%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="85%" style="border-bottom: white;">
                <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Investment
                  Income:</font></div>
              </td>
              <td width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            </tr>
            <tr bgcolor="#ccffcc">
              <td align="left" valign="bottom" width="85%" style="border-bottom: #ccffcc;">
                <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                  appreciation in fair value of investments</font></div>
              </td>
              <td width="2%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">628,017</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="85%" style="border-bottom: white;">
                <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Interest</font></div>
              </td>
              <td width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">121,631</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            </tr>
            <tr bgcolor="#ccffcc">
              <td align="left" valign="bottom" width="85%" style="border-bottom: #ccffcc thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Dividends</font></div>
              </td>
              <td width="2%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">704,870</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="85%" style="border-bottom: white thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                  Investment Gain</font></div>
              </td>
              <td width="2%" style="border-bottom: white thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,454,518</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
            </tr>
            <tr bgcolor="#ccffcc">
              <td align="left" valign="bottom" width="85%" style="border-bottom: #ccffcc thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                  Additions</font></div>
              </td>
              <td width="2%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">,978,923</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="85%">&#160;</td>
              <td width="2%">&#160;</td>
              <td align="left" valign="bottom" width="1%">&#160;</td>
              <td align="right" valign="bottom" width="11%">&#160;</td>
              <td align="left" valign="bottom" width="1%">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="85%" style="border-bottom: white;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">DEDUCTIONS:</font></div>
              </td>
              <td width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            </tr>
            <tr bgcolor="#ccffcc">
              <td align="left" valign="bottom" width="85%" style="border-bottom: #ccffcc thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 27pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Benefits
                  paid to participants</font></div>
              </td>
              <td width="2%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">764,415</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="85%">&#160;</td>
              <td width="2%">&#160;</td>
              <td align="left" valign="bottom" width="1%">&#160;</td>
              <td align="right" valign="bottom" width="11%">&#160;</td>
              <td align="left" valign="bottom" width="1%">&#160;</td>
            </tr>
            <tr bgcolor="#ccffcc">
              <td align="left" valign="bottom" width="85%" style="border-bottom: medium none;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">NET
                  INCREASE</font></div>
              </td>
              <td width="2%" style="border-bottom: medium none;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,214,508</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="85%">&#160;</td>
              <td width="2%">&#160;</td>
              <td align="left" valign="bottom" width="1%">&#160;</td>
              <td align="right" valign="bottom" width="11%">&#160;</td>
              <td align="left" valign="bottom" width="1%">&#160;</td>
            </tr>
            <tr bgcolor="#ccffcc">
              <td align="left" valign="bottom" width="85%" style="border-bottom: #ccffcc thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">NET
                  ASSETS AVAILABLE FOR BENEFITS, beginning of year</font></div>
              </td>
              <td width="2%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">12,102,830</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="85%">&#160;</td>
              <td width="2%">&#160;</td>
              <td align="left" valign="bottom" width="1%">&#160;</td>
              <td align="right" valign="bottom" width="11%">&#160;</td>
              <td align="left" valign="bottom" width="1%">&#160;</td>
            </tr>
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              <td align="left" valign="bottom" width="85%" style="border-bottom: #ccffcc thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">NET
                  ASSETS AVAILABLE FOR BENEFITS, end of year</font></div>
              </td>
              <td width="2%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">14,317,338</font></div>
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    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        accompanying notes are an integral part of these financial
        statements.</font></div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">5</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: -36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: -18pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: -36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: -18pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>FREQUENCY
      ELECTRONICS, INC.</u></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: -36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: -18pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>401(k)
      SAVINGS PLAN</u></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: -36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: -18pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>NOTES
      TO FINANCIAL STATEMENTS</u></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: -36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: -18pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>YEAR
      ENDED DECEMBER 31, 2006</u></strong></font><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: -36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: -18pt" align="left">
      <div>
        <div><br>
          <div>
            <table cellpadding="0" cellspacing="0" width="100%">

                <tr>
                  <td align="right" valign="top" width="4%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 3.6pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>1.</strong></font></div>
                  </td>
                  <td align="justify" valign="bottom" width="75%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 3.6pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Plan
                      Description</strong></font></div>
                  </td>
                </tr>
                <tr>
                  <td align="right" valign="top" width="4%">&#160;</td>
                  <td align="justify" valign="bottom" width="75%">&#160;</td>
                </tr>
                <tr>
                  <td align="right" valign="top" width="4%">&#160;</td>
                  <td align="justify" valign="bottom" width="75%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 3.6pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
                      following description of the Frequency Electronics, Inc. (the
                      "Company" or
                      the &#8220;Employer&#8221;) 401(k) Savings Plan (the "Plan") provides only general
                      information. Participants should refer to the Plan agreement
                      for a more
                      complete description of the Plan's provisions.</font></div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 3.6pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>General
                      - </em></strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
                      Plan, adopted on January 1, 1985, is a defined contribution
                      savings plan
                      qualified under Section 401(k) of the Internal Revenue Code
                      covering
                      employees of the Company who have completed six months of service
                      and are
                      age twenty-one or older. The Plan is subject to the provisions
                      of the
                      Employee Retirement Income Security Act of 1974 (&#8220;ERISA&#8221;).</font></div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 3.6pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Plan
                      administration</em></strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
                      -
                      Effective December 1, 2006, the Plan changed its custodian
                      and
                      recordkeeper from Metropolitan Life Insurance Company &#8220;Met Life&#8221; to
                      Principal Retirement Group &#8220;Principal&#8221;. The Plan also changed investment
                      options to accounts offered by Principal. Principal holds the
                      Plan&#8217;s
                      investment in Frequency Electronics, Inc. common stock.</font></div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 3.6pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Contributions
                      -</em></strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
                      Each year, participants may contribute up to 25 percent of
                      pretax annual
                      compensation, as defined by the Plan, subject to certain limitations
                      imposed by law. Participants who have attained age 50 before
                      the end of
                      the Plan year are eligible to make catch-up contributions.
                      Participants
                      may also contribute amounts representing distributions from
                      other
                      qualified benefit plans. The Company may make matching contributions,
                      as
                      defined by the Plan. Company contributions, if any, may consist
                      of cash or
                      qualifying employer securities. During the year ended December
                      31, 2006,
                      Company contributions were made in the form of Company stock.
                      The Company
                      contributed 100 percent of the first 3 percent of base compensation
                      that a
                      participant contributed to the Plan, not to exceed a maximum
                      of $2,500.
                      Additionally, the Company contributed $500 on behalf of each
                      eligible
                      participant, regardless of the participant&#8217;s contribution, if any. The
                      maximum Company contribution is $3,000 per participant.</font></div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 3.6pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Participant
                      accounts - </em></strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Each
                      participant's account is credited with the participant's contribution
                      and
                      allocations of the Company's contribution and Plan earnings.
                      Allocations
                      of Plan earnings are made to each participant's account based
                      upon
                      participant account balances, as defined. The benefit to which
                      a
                      participant is entitled is the benefit that can be provided
                      from the
                      participant's vested account.</font></div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 3.6pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Vesting
                      -</em></strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
                      Participants are vested immediately in their contributions
                      plus actual
                      earnings thereon. Vesting in the Company's contribution portion
                      of their
                      accounts is based on years of continuous service. Participants
                      vest 20
                      percent after two years of service and 20 percent each year
                      thereafter. A
                      participant is 100 percent vested after six years of credited
                      service.</font></div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 3.6pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Participant
                      loans -</em></strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
                      Loans are permitted against a participant's contributory account
                      balance.
                      Participants may borrow a minimum of $1,000 up to a maximum
                      equal to the
                      lesser of $50,000 or 50% of the participant's contributory
                      account
                      balance. The loans are secured by the balance in the participant's
                      account
                      and bear interest at rates that range from 4 percent to 9.5
                      percent.
                      Principal and interest are paid ratably through payroll
                      deductions.</font></div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                  </td>
                </tr>
                <tr>
                  <td align="right" valign="top" width="4%">&#160;</td>
                  <td align="justify" valign="bottom" width="75%">&#160;</td>
                </tr>

            </table>
          </div>
          <div>&#160;</div>
          <div>&#160;</div>
          <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
            <div id="FTR">
              <div id="GLFTR" style="WIDTH: 100%" align="left">
              </div>
            </div>
            <div id="PN" style="PAGE-BREAK-AFTER: always">
              <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">6</font></div>
              <div style="WIDTH: 100%; TEXT-ALIGN: center">
                <hr style="COLOR: black" noshade size="2">
              </div>
            </div>
            <div id="HDR">
              <div id="GLHDR" style="WIDTH: 100%" align="right">
              </div>
            </div>
          </div>
          <div>&#160;</div>
          <div>
            <table cellpadding="0" cellspacing="0" width="100%">

                <tr>
                  <td align="right" valign="top" width="4%">&#160;</td>
                  <td align="justify" valign="bottom" width="75%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 3.6pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Payment
                      of benefits -</em></strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
                      A
                      participant may elect to receive the value of the vested interest
                      in his
                      or her account upon termination of service due to death, disability
                      or
                      retirement. An employee who became a participant on or after
                      January 1,
                      1998, will generally receive their benefit as a lump-sum distribution.
                      An
                      employee who became a participant prior to January 1, 1998,
                      will generally
                      receive their benefit, unless otherwise elected, as a Qualified
                      Joint and
                      Survivor Annuity, if the participant is married, or as a life
                      annuity, if
                      unmarried. Participants who elect not to receive the annuity
                      form of
                      payment, may elect to receive a lump-sum distribution or a
                      distribution in
                      substantially equal monthly, quarterly, semi-annual or annual
                      installments
                      (over a term that does not extend beyond the participant's
                      or designated
                      beneficiary's actuarial life expectancy).</font></div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 3.6pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Forfeited
                      accounts - </em></strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">At
                      December 31, 2006 and 2005, forfeited non-vested accounts,
                      and earnings
                      thereon, totaled approximately $31,218 and $32,894, respectively.
                      These
                      accounts may be used to pay administrative costs of the Plan.
                      Any such
                      accounts not used to pay administrative costs will be reallocated
                      to
                      participants in the same manner as employer contributions.
                      During the year
                      ended December 31, 2006, forfeitures of non-vested accounts
                      totaled
                      approximately $14,819 and accounts totaling approximately $21,598
                      were
                      reallocated to participants.</font></div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 3.6pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Plan
                      expenses - </em></strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Expenses
                      associated with administering the Plan are paid by the
                      Company.</font></div>
                  </td>
                </tr>
                <tr>
                  <td align="right" valign="top" width="4%">&#160;</td>
                  <td align="justify" valign="bottom" width="75%">&#160;</td>
                </tr>
                <tr>
                  <td align="right" valign="top" width="4%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 3.6pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2.</strong></font></div>
                  </td>
                  <td align="justify" valign="bottom" width="75%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 3.6pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Summary
                      of Significant Accounting Polices</strong></font></div>
                  </td>
                </tr>
                <tr>
                  <td align="right" valign="top" width="4%">&#160;</td>
                  <td align="justify" valign="bottom" width="75%">&#160;</td>
                </tr>
                <tr>
                  <td align="right" valign="top" width="4%">&#160;</td>
                  <td align="justify" valign="bottom" width="75%">
                    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 3.6pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Basis
                      of presentation -</em></strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>&#160;</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
                      accompanying financial statements have been prepared on the
                      accrual basis
                      of accounting.</font></div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 3.6pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Use
                      of estimates -</em></strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
                      The preparation of financial statements in conformity with
                      generally
                      accepted accounting principles requires management to make
                      estimates and
                      assumptions that affect the reported amounts of assets and
                      liabilities and
                      changes therein, and disclosure of contingent assets and liabilities.
                      Actual results could differ from those estimates.</font></div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 3.6pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Investment
                      valuation and income recognition -</em></strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
                      The Plan's investments are stated at fair value based upon
                      quoted market
                      prices, except for the Plan's benefit responsive investment
                      contract,
                      referred to as the Morley Financial Service, Inc. Principal
                      Stable Value
                      Fund, which is valued at contract value. Participant loans
                      are valued at
                      their outstanding balances, which approximate fair value.</font></div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 3.6pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Purchases
                      and sales of investments are recorded on a trade-date basis.
                      Interest
                      income is recognized in the period earned. Dividends are recorded
                      on the
                      ex-dividend date. Gains and losses on the sales of investments
                      are
                      recognized when realized, while unrealized gains and losses
                      are recognized
                      daily based on fluctuations in market value. Realized and unrealized
                      gains
                      and losses are netted in the financial statements.</font></div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 3.6pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Frequency
                      Electronics, Inc. Common Stock Fund -</em></strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
                      The Frequency Electronics, Inc. Common Stock Fund is a nonparticipant
                      directed fund. All employer matching contributions that were
                      made prior to
                      January 1, 1990 and subsequent to January 1, 2001 are in the
                      form of
                      Frequency Electronics, Inc. common stock. This stock is valued
                      at the last
                      sale price on the NASDAQ on the last business day of the year.
                      Frequency
                      Electronics, Inc. common stock approximated $2,545,000 (18%)
                      and
                      $1,825,000 (15%) of total assets at December 31, 2006 and 2005,
                      respectively.</font></div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
                    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 3.6pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Information
                      about the significant components of the change in net assets
                      related to
                      the nonparticipant-directed investment during the year ended
                      December 31,
                      2006 is as follows:</font></div>
                  </td>
                </tr>

            </table>
          </div>
          <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;&#160;&#160;
</div>
          <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
            <div align="left">
              <table border="0" cellpadding="0" cellspacing="0" id="ftable" width="100%">

                  <tr bgcolor="#ccffcc">
                    <td width="4%" bgcolor="#ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="81%" style="border-bottom: #ccffcc;">
                      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Balance,
                        January 1, 2006</font></div>
                    </td>
                    <td width="2%" style="border-bottom: #ccffcc;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">
                      <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font><font id="TAB2" style="MARGIN-LEFT: 0px; COLOR: black; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; LETTER-SPACING: -7.45pt"></font></div>
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                    <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
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                  <tr bgcolor="white">
                    <td width="4%">&#160;</td>
                    <td align="left" valign="bottom" width="81%" style="border-bottom: white;">
                      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Employer
                        Contributions Received During 2006</font></div>
                    </td>
                    <td width="2%" style="border-bottom: white;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                      <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font id="TAB1" style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">436,742</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  </tr>
                  <tr bgcolor="#ccffcc">
                    <td width="4%" bgcolor="#ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="81%" style="border-bottom: #ccffcc;">
                      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                        Depreciation in Fair Value of Investments</font></div>
                    </td>
                    <td width="2%" style="border-bottom: #ccffcc;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">
                      <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font id="TAB1" style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">307,479</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  </tr>
                  <tr bgcolor="white">
                    <td width="4%">&#160;</td>
                    <td align="left" valign="bottom" width="81%" style="border-bottom: white;">
                      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Investment
                        Income</font></div>
                    </td>
                    <td width="2%" style="border-bottom: white;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                      <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font id="TAB1" style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">39,532</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  </tr>
                  <tr bgcolor="#ccffcc">
                    <td width="4%" bgcolor="#ffffff">&#160;</td>
                    <td align="left" valign="bottom" width="81%" style="border-bottom: #ccffcc solid;">
                      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Distributions</font></div>
                    </td>
                    <td width="2%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                      <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font id="TAB1" style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(63,701</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">
                      <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font id="TAB1" style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
                    </td>
                  </tr>
                  <tr bgcolor="white">
                    <td width="4%">&#160;</td>
                    <td align="left" valign="bottom" width="81%" style="border-bottom: white solid;">
                      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Balance,
                        December 31, 2006</font></div>
                    </td>
                    <td width="2%" style="border-bottom: white thin solid;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                      <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font><font id="TAB2" style="MARGIN-LEFT: 0px; COLOR: black; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; LETTER-SPACING: -7.45pt"></font></div>
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                    <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                      <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font id="TAB2" style="MARGIN-LEFT: 0px; COLOR: black; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; LETTER-SPACING: -7.45pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,544,572</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: white solid;">&#160;</td>
                  </tr>

              </table>
            </div>
          </div>
          <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
          <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
            <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
              <div id="FTR">
                <div id="GLFTR" style="WIDTH: 100%" align="left">
                </div>
              </div>
              <div id="PN" style="PAGE-BREAK-AFTER: always">
                <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">7</font></div>
                <div style="WIDTH: 100%; TEXT-ALIGN: center">
                  <hr style="COLOR: black" noshade size="2">
                </div>
              </div>
              <div id="HDR">
                <div id="GLHDR" style="WIDTH: 100%" align="right">
                </div>
              </div>
            </div>
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br>&#160;</div>
            <div>
              <table cellpadding="0" cellspacing="0" width="100%">

                  <tr>
                    <td align="right" valign="top" width="4%">&#160;</td>
                    <td align="justify" valign="bottom" width="76%">
                      <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Payment
                        of benefits -</em></strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
                        Benefits are recorded when paid.</font></div>
                    </td>
                  </tr>

              </table>
            </div>
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
            <div>
              <table cellpadding="0" cellspacing="0" width="100%">

                  <tr>
                    <td align="right" valign="top" width="4%">
                      <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 3.6pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>3.</strong></font></div>
                    </td>
                    <td align="justify" valign="bottom" width="75%">
                      <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 3.6pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Investments</strong></font></div>
                    </td>
                  </tr>
                  <tr>
                    <td align="right" valign="top" width="4%">&#160;</td>
                    <td align="justify" valign="bottom" width="75%">&#160;</td>
                  </tr>
                  <tr>
                    <td align="right" valign="top" width="4%">&#160;</td>
                    <td align="justify" valign="bottom" width="75%">
                      <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 3.6pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
                        following presents investments that represent 5 percent or
                        more of the
                        Plan's net assets at December 31,
                        2006:</font></div>
                    </td>
                  </tr>

              </table>
            </div>
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
            <div>
              <table cellpadding="0" cellspacing="0" id="ftable" width="100%">

                  <tr bgcolor="#ccffcc">
                    <td width="4%">&#160;</td>
                    <td align="left" valign="bottom" width="81%" style="border-bottom: #ccffcc;">
                      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Morley
                        Financial Services Principal Stable Value Fund; 187,129
                        shares</font></div>
                    </td>
                    <td width="2%" style="border-bottom: #ccffcc;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">
                      <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font><font id="TAB2" style="MARGIN-LEFT: 0px; COLOR: black; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; LETTER-SPACING: -7.45pt"></font></div>
                    </td>
                    <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">
                      <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font id="TAB2" style="MARGIN-LEFT: 0px; COLOR: black; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; LETTER-SPACING: -7.45pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,849,274</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  </tr>
                  <tr bgcolor="white">
                    <td width="4%">&#160;</td>
                    <td align="left" valign="bottom" width="81%" style="border-bottom: white;">
                      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Principal
                        Global Investors SmallCap Value AdvPr Fund; 38,816 shares</font></div>
                    </td>
                    <td width="2%" style="border-bottom: white;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                      <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font id="TAB1" style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">735,185</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  </tr>
                  <tr bgcolor="#ccffcc">
                    <td width="4%">&#160;</td>
                    <td align="left" valign="bottom" width="81%" style="border-bottom: #ccffcc;">
                      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Principal
                        Global Investors Diversified IntlAdv Pref Fund; 50,844
                        shares</font></div>
                    </td>
                    <td width="2%" style="border-bottom: #ccffcc;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">
                      <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font id="TAB1" style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">703,683</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  </tr>
                  <tr bgcolor="white">
                    <td width="4%">&#160;</td>
                    <td align="left" valign="bottom" width="81%" style="border-bottom: white;">
                      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Principal
                        Global Investors S&amp;P Idx AdvPr Fund; 223,400 shares</font></div>
                    </td>
                    <td width="2%" style="border-bottom: white;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                      <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font id="TAB1" style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,240,703</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  </tr>
                  <tr bgcolor="#ccffcc">
                    <td width="4%">&#160;</td>
                    <td align="left" valign="bottom" width="81%" style="border-bottom: #ccffcc;">
                      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Principal
                        Global Investors Principal Investors LifeTime 2030 Adv Pref
                        Fund; 70,384
                        shares</font></div>
                    </td>
                    <td width="2%" style="border-bottom: #ccffcc;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">
                      <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">956,516</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  </tr>
                  <tr bgcolor="white">
                    <td width="4%">&#160;</td>
                    <td align="left" valign="bottom" width="81%" style="border-bottom: white;">
                      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Capital
                        Research and Mgmt Co American Funds Growth Fund of America
                        R3 Fund; 39,099
                        shares</font></div>
                    </td>
                    <td width="2%" style="border-bottom: white;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                      <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font id="TAB1" style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,268,751</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  </tr>
                  <tr bgcolor="#ccffcc">
                    <td width="4%">&#160;</td>
                    <td align="left" valign="bottom" width="81%" style="border-bottom: #ccffcc;">
                      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Frequency
                        Electronics, Inc. Common Stock; 212,934 shares</font></div>
                    </td>
                    <td width="2%" style="border-bottom: #ccffcc;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">
                      <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,544,572</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  </tr>

              </table>
            </div>
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
            <div>
              <table cellpadding="0" cellspacing="0" width="100%">

                  <tr>
                    <td align="right" valign="top" width="4%">&#160;</td>
                    <td align="justify" valign="bottom" width="76%">
                      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
                        following presents investments that represent 5 percent or
                        more of the
                        Plan's net assets at December 31,
                        2005:</font></div>
                    </td>
                  </tr>

              </table>
            </div>
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
            <div>
              <table cellpadding="0" cellspacing="0" id="ftable" width="100%">

                  <tr bgcolor="#ccffcc">
                    <td width="4%">&#160;</td>
                    <td align="left" valign="bottom" width="81%" style="border-bottom: #ccffcc;">
                      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Met
                        Life Stable Value Option - Premier Pooled Guaranteed Investment
                        Contract
                        (GIC) NAV Product; 278,398 shares</font></div>
                    </td>
                    <td width="2%" style="border-bottom: #ccffcc;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">
                      <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font><font id="TAB2" style="MARGIN-LEFT: 0px; COLOR: black; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; LETTER-SPACING: -7.45pt"></font></div>
                    </td>
                    <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">
                      <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font id="TAB2" style="MARGIN-LEFT: 0px; COLOR: black; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; LETTER-SPACING: -7.45pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3,075,776</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  </tr>
                  <tr bgcolor="white">
                    <td width="4%">&#160;</td>
                    <td align="left" valign="bottom" width="81%" style="border-bottom: white;">
                      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Federated
                        Capital Appreciation Fund; 78,366 shares</font></div>
                    </td>
                    <td width="2%" style="border-bottom: white;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                      <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font id="TAB1" style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,965,426</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  </tr>
                  <tr bgcolor="#ccffcc">
                    <td width="4%">&#160;</td>
                    <td align="left" valign="bottom" width="81%" style="border-bottom: #ccffcc;">
                      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Calvert
                        Income Fund; 41,241 shares</font></div>
                    </td>
                    <td width="2%" style="border-bottom: #ccffcc;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">
                      <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font id="TAB1" style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">691,201</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  </tr>
                  <tr bgcolor="white">
                    <td width="4%">&#160;</td>
                    <td align="left" valign="bottom" width="81%" style="border-bottom: white;">
                      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">American
                        Funds - Growth Fund of America; 37,201 shares</font></div>
                    </td>
                    <td width="2%" style="border-bottom: white;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                      <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font id="TAB1" style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,148,018</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  </tr>
                  <tr bgcolor="#ccffcc">
                    <td width="4%">&#160;</td>
                    <td align="left" valign="bottom" width="81%" style="border-bottom: #ccffcc;">
                      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Met
                        Life - American Funds Balanced; 34,569 shares</font></div>
                    </td>
                    <td width="2%" style="border-bottom: #ccffcc;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">
                      <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font id="TAB1" style="MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">616,028</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  </tr>
                  <tr bgcolor="white">
                    <td width="4%">&#160;</td>
                    <td align="left" valign="bottom" width="81%" style="border-bottom: white;">
                      <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Frequency
                        Electronics, Inc. Common Stock; 173,929 shares</font></div>
                    </td>
                    <td width="2%" style="border-bottom: white;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                      <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,824,520</font></div>
                    </td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                  </tr>
                  <tr bgcolor="#ccffcc">
                    <td width="4%">&#160;</td>
                    <td align="left" valign="bottom" width="81%" style="border-bottom: #ccffcc;">&#160;</td>
                    <td width="2%" style="border-bottom: #ccffcc;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                    <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">&#160;</td>
                    <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                  </tr>

              </table>
            </div>
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
            <div>
              <table cellpadding="0" cellspacing="0" width="100%">

                  <tr>
                    <td align="right" valign="top" width="4%">
                      <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 3.6pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>4.</strong></font></div>
                    </td>
                    <td align="justify" valign="bottom" width="75%">
                      <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 3.6pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Investment
                        Contract with Insurance Company</strong></font></div>
                    </td>
                  </tr>
                  <tr>
                    <td align="right" valign="top" width="4%">&#160;</td>
                    <td align="justify" valign="bottom" width="75%">&#160;</td>
                  </tr>
                  <tr>
                    <td align="right" valign="top" width="4%">&#160;</td>
                    <td align="left" valign="bottom" width="75%">
                      <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 3.6pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
                        described in Financial Accounting Standards Board Staff Position,
                        FSP AAG
                        INV-1 and SOP 94-4-1, </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Reporting
                        of Fully Benefit-Responsive Investment Contracts Held by
                        Certain
                        Investment Companies Subject to the AICPA Investment Company
                        Guide and
                        Defined-Contribution Health and Welfare and Pension Plans
                        </em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(the
                        FSP)</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>,
                        </em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">investment
                        contracts held by a defined-contribution plan are required
                        to be reported
                        at fair value. However, contract value is the relevant measurement
                        attribute for that portion of the net assets available for
                        benefits of a
                        defined-contribution plan attributable to fully benefit-responsive
                        investment contracts because contract value is the amount
                        participants
                        would receive if they were to initiate permitted transactions
                        under the
                        terms of the plan. As required by the FSP, the Statement
                        of Net Assets
                        Available for Benefits presents the fair value of the investment
                        contracts
                        from fair value to contract value. Prior year balances have
                        been
                        reclassified accordingly. The Statement of Changes in Net
                        Assets Available
                        for Benefits is prepared on a contract value basis.</font></div>
                      <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 3.6pt" align="left">&#160;</div>
                      <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 3.6pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Effective
                        November 30, 2006, the Plan obtained an investment position
                        in the Morley
                        Financial Services Principal Stable Value Fund (the &#8220;Stable Value Fund&#8221;).
                        The Stable Value Fund&#8217;s net assets include fully benefit-responsive
                        investment contracts that are accounted for on their contract
                        value basis.
                        Accordingly, the Plan accounts for its investment position
                        in the Stable
                        Value Fund using the contract value. The Plan&#8217;s investment in the Stable
                        Value Fund at contract value exceeded its fair value by approximately
                        $45,000 at December 31, 2006.</font></div>
                      <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 3.6pt" align="justify">&#160;</div>
                      <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 3.6pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
                        Plan was engaged in a benefit-responsive investment contract
                        with
                        Metropolitan Life Insurance Company ("Met Life") referred
                        to as the Met
                        Life Stable Value Option in prior years. Met Life maintained
                        the
                        contributions in a pooled account. This contract has been
                        terminated as of
                        November 30, 2006 as a result of the Plan&#8217;s change in
                        recordkeeper.</font></div>
                    </td>
                  </tr>
                  <tr>
                    <td align="right" valign="top" width="4%">&#160;</td>
                    <td align="justify" valign="bottom" width="75%">&#160;</td>
                  </tr>

              </table>
            </div>
            <div>&#160;</div>
            <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
              <div id="FTR">
                <div id="GLFTR" style="WIDTH: 100%" align="left">
                </div>
              </div>
              <div id="PN" style="PAGE-BREAK-AFTER: always">
                <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">8</font></div>
                <div style="WIDTH: 100%; TEXT-ALIGN: center">
                  <hr style="COLOR: black" noshade size="2">
                </div>
              </div>
              <div id="HDR">
                <div id="GLHDR" style="WIDTH: 100%" align="right">
                </div>
              </div>
            </div>
            <div>&#160;</div>
            <div>
              <table cellpadding="0" cellspacing="0" width="100%">

                  <tr>
                    <td align="right" valign="top" width="4%">
                      <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 3.6pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>5.</strong></font></div>
                    </td>
                    <td align="justify" valign="bottom" width="75%">
                      <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 3.6pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Tax
                        Status</strong></font></div>
                    </td>
                  </tr>
                  <tr>
                    <td align="right" valign="top" width="4%">&#160;</td>
                    <td align="justify" valign="bottom" width="75%">&#160;</td>
                  </tr>
                  <tr>
                    <td align="right" valign="top" width="4%">&#160;</td>
                    <td align="justify" valign="bottom" width="75%">
                      <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 3.6pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
                        Internal Revenue Service has determined and informed the
                        Company by a
                        letter dated January 29, 2004, that the Plan and related
                        trust are
                        designed in accordance with applicable sections of the Internal
                        Revenue
                        Code ("IRC"). </font></div>
                    </td>
                  </tr>
                  <tr>
                    <td align="right" valign="top" width="4%">&#160;</td>
                    <td align="justify" valign="bottom" width="75%">&#160;</td>
                  </tr>
                  <tr>
                    <td align="right" valign="top" width="4%">
                      <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 3.6pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>6.</strong></font></div>
                    </td>
                    <td align="justify" valign="bottom" width="75%">
                      <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 3.6pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Plan
                        Termination</strong></font></div>
                    </td>
                  </tr>
                  <tr>
                    <td align="right" valign="top" width="4%">&#160;</td>
                    <td align="justify" valign="bottom" width="75%">&#160;</td>
                  </tr>
                  <tr>
                    <td align="right" valign="top" width="4%">&#160;</td>
                    <td align="justify" valign="bottom" width="75%">
                      <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 3.6pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Although
                        it has not expressed any intent to do so, the Company has
                        the right under
                        the Plan to discontinue its contributions at any time and
                        to terminate the
                        Plan subject to the provisions of the ERISA. In the event
                        of Plan
                        termination, participants will become 100 percent vested
                        in their
                        accounts.</font></div>
                    </td>
                  </tr>
                  <tr>
                    <td align="right" valign="top" width="4%">&#160;</td>
                    <td align="justify" valign="bottom" width="75%">&#160;</td>
                  </tr>
                  <tr>
                    <td align="right" valign="top" width="4%">
                      <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 3.6pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>7.</strong></font></div>
                    </td>
                    <td align="justify" valign="bottom" width="75%">
                      <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 3.6pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Parties
                        in Interest/Related Party Transactions</strong></font></div>
                    </td>
                  </tr>
                  <tr>
                    <td align="right" valign="top" width="4%">&#160;</td>
                    <td align="justify" valign="bottom" width="75%">&#160;</td>
                  </tr>
                  <tr>
                    <td align="right" valign="top" width="4%">&#160;</td>
                    <td align="justify" valign="top" width="75%">
                      <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 3.6pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
                        Plan's investments include shares of common stock issued
                        by the Plan
                        Sponsor, Frequency Electronics, Inc. This stock is valued
                        at the last sale
                        price on the NASDAQ on the last business day of the year.
                        Investment in
                        Frequency Electronics, Inc. common stock is permitted under
                        the provisions
                        of the Plan.</font></div>
                    </td>
                  </tr>
                  <tr>
                    <td align="right" valign="top" width="4%">&#160;</td>
                    <td align="justify" valign="top" width="75%">&#160;</td>
                  </tr>
                  <tr>
                    <td align="right" valign="top" width="4%">&#160;</td>
                    <td align="justify" valign="top" width="75%">
                      <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 3.6pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>MetLife
                        - </em></strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
                        Plan had entered into a benefit-responsive investment contract
                        with
                        Metropolitan Life Insurance Company ("Met Life"). Met Life
                        was the
                        custodian as defined by the Plan for January 1, 2006 through
                        November 30,
                        2006 and, therefore, these transactions qualify as party-in-interest
                        transactions. Such transactions are permitted under the provisions
                        of the
                        Plan. This contract has been terminated as of November 30,
                        2006 as a
                        result of the Company&#8217;s change in recordkeeper. No such contract exists
                        with the Plan&#8217;s new recordkeeper (Principal).</font></div>
                    </td>
                  </tr>
                  <tr>
                    <td align="right" valign="top" width="4%">&#160;</td>
                    <td align="justify" valign="top" width="75%">&#160;</td>
                  </tr>
                  <tr>
                    <td align="right" valign="top" width="4%">&#160;</td>
                    <td align="justify" valign="top" width="75%">
                      <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 3.6pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Principal
                        financial group -</em></strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
                        Certain plan investments are shares of pooled separate accounts
                        managed by
                        Principal Financial Group. Principal is the custodian and
                        record keeper as
                        defined by the Plan, and, therefore, these transactions qualify
                        as
                        party-in-interest transactions. Purchases and sales of these
                        accounts and
                        the underlying investments comprising these accounts are
                        open market
                        transactions at fair market value. Such transactions are
                        permitted under
                        the provisions of the Plan and are exempt from the prohibition
                        of
                        party-in-interest transactions under ERISA and applicable
                        exemptions
                        promulgated thereunder. Fees paid by the Plan to Principal
                        for
                        recordkeeping services totaled approximately $1,500 during
                        the year ended
                        December 31, 2006.</font></div>
                    </td>
                  </tr>
                  <tr>
                    <td align="right" valign="top" width="4%">&#160;</td>
                    <td align="justify" valign="bottom" width="75%">&#160;</td>
                  </tr>
                  <tr>
                    <td align="right" valign="top" width="4%">
                      <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 3.6pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>8.</strong></font></div>
                    </td>
                    <td align="justify" valign="bottom" width="75%">
                      <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 3.6pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Cash
                        Dividend</strong></font></div>
                    </td>
                  </tr>
                  <tr>
                    <td align="right" valign="top" width="4%">&#160;</td>
                    <td align="justify" valign="bottom" width="75%">&#160;</td>
                  </tr>
                  <tr>
                    <td align="right" valign="top" width="4%">&#160;</td>
                    <td align="justify" valign="bottom" width="75%">
                      <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 3.6pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">During
                        calendar year 2006, the Board of Directors of Frequency Electronics,
                        Inc.
                        declared semi-annual cash dividends of $.10 (ten cents) per
                        share payable
                        June 1 and December 1. These dividends aggregated approximately
                        $39,532 in
                        2006.</font></div>
                    </td>
                  </tr>
                  <tr>
                    <td align="right" valign="top" width="4%">&#160;</td>
                    <td align="justify" valign="bottom" width="75%">&#160;</td>
                  </tr>
                  <tr>
                    <td align="right" valign="top" width="4%">
                      <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 3.6pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>9.</strong></font></div>
                    </td>
                    <td align="justify" valign="bottom" width="75%">
                      <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 3.6pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Risks
                        and Uncertainties</strong></font></div>
                    </td>
                  </tr>
                  <tr>
                    <td align="right" valign="top" width="4%">&#160;</td>
                    <td align="justify" valign="bottom" width="75%">&#160;</td>
                  </tr>
                  <tr>
                    <td align="right" valign="top" width="4%">&#160;</td>
                    <td align="justify" valign="bottom" width="75%">
                      <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 3.6pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
                        Plan provides for various investment options in any combination
                        of stocks,
                        bonds, mutual funds, and other investment securities. Investment
                        securities are exposed to various risks, such as interest
                        rate, market and
                        credit risks. Due to the level of risk associated with certain
                        investment
                        securities, it is at least reasonably possible that changes
                        in the values
                        of investments securities will occur in the near term and
                        that such
                        changes could materially affect participants' account balances
                        and the
                        amounts reported in the statement of net assets available
                        for
                        benefits.</font></div>
                    </td>
                  </tr>

              </table>
            </div>
            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br>
              <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
                <div id="FTR">
                  <div id="GLFTR" style="WIDTH: 100%" align="left">
                  </div>
                </div>
                <div id="PN" style="PAGE-BREAK-AFTER: always">
                  <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">9</font></div>
                  <div style="WIDTH: 100%; TEXT-ALIGN: center">
                    <hr style="COLOR: black" noshade size="2">
                  </div>
                </div>
                <div id="HDR">
                  <div id="GLHDR" style="WIDTH: 100%" align="right">
                  </div>
                </div>
              </div><br></div>
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                        <td width="5%" style="border-bottom: black thin solid;">&#160;</td>
                        <td width="3%" style="border-bottom: black thin solid;">&#160;</td>
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                        <td align="left" valign="bottom" width="2%" style="border-bottom: black thin solid;">&#160;</td>
                        <td colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
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                        <td align="left" valign="bottom" width="2%" style="border-bottom: black thin solid;">&#160;</td>
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                      <tr>
                        <td width="5%">&#160;</td>
                        <td width="3%">&#160;</td>
                        <td align="left" valign="bottom" width="30%" style="border-bottom: medium none;">&#160;</td>
                        <td width="2%" style="border-bottom: medium none;">&#160;</td>
                        <td align="right" colspan="2" valign="bottom" width="31%" style="border-bottom: medium none;">&#160;</td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                        <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                        <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
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                        <td valign="top" width="5%">
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                        <td width="3%">&#160;</td>
                        <td align="left" valign="bottom" width="30%" style="border-bottom: #ccffcc;">
                          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Morley
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                        </td>
                        <td width="2%" style="border-bottom: #ccffcc;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                        <td align="right" valign="bottom" width="30%" style="border-bottom: #ccffcc;">
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                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: #ccffcc;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">&#160;</td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: #ccffcc;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">
                          <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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                        <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">
                          <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,849,274</font></div>
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                        <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
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                      <tr bgcolor="white">
                        <td width="5%">&#160;</td>
                        <td width="3%">&#160;</td>
                        <td align="left" valign="bottom" width="30%" style="border-bottom: white;">&#160;</td>
                        <td width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="30%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      </tr>
                      <tr bgcolor="#ccffcc">
                        <td width="5%">&#160;</td>
                        <td width="3%">&#160;</td>
                        <td align="left" valign="bottom" width="30%" style="border-bottom: #ccffcc;">
                          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Principal
                            Global Investors Smallcap Value AdvPr Fund</font></div>
                        </td>
                        <td width="2%" style="border-bottom: #ccffcc;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                        <td align="right" valign="bottom" width="30%" style="border-bottom: #ccffcc;">
                          <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">Interest
                            in registered investment company.</font></div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: #ccffcc;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: #ccffcc;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">
                          <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">735,185
                            </font></div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                      </tr>
                      <tr bgcolor="white">
                        <td width="5%">&#160;</td>
                        <td width="3%">&#160;</td>
                        <td align="left" valign="bottom" width="30%" style="border-bottom: white;">&#160;</td>
                        <td width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="30%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      </tr>
                      <tr bgcolor="#ccffcc">
                        <td width="5%">&#160;</td>
                        <td width="3%">&#160;</td>
                        <td align="left" valign="bottom" width="30%" style="border-bottom: #ccffcc;">
                          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Principal
                            Global Investors Diversified IntlAdv Pref Fund</font></div>
                        </td>
                        <td width="2%" style="border-bottom: #ccffcc;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                        <td align="right" valign="bottom" width="30%" style="border-bottom: #ccffcc;">
                          <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">Interest
                            in registered investment company.</font></div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: #ccffcc;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: #ccffcc;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">
                          <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">703,683
                            </font></div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                      </tr>
                      <tr bgcolor="white">
                        <td width="5%">&#160;</td>
                        <td width="3%">&#160;</td>
                        <td align="left" valign="bottom" width="30%" style="border-bottom: white;">&#160;</td>
                        <td width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="30%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      </tr>
                      <tr bgcolor="#ccffcc">
                        <td width="5%">&#160;</td>
                        <td width="3%">&#160;</td>
                        <td align="left" valign="bottom" width="30%" style="border-bottom: #ccffcc;">
                          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Principal
                            Global Investors Intl Emerging Mkts AdvPr Fund</font></div>
                        </td>
                        <td width="2%" style="border-bottom: #ccffcc;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                        <td align="right" valign="bottom" width="30%" style="border-bottom: #ccffcc;">
                          <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">Interest
                            in registered investment company.</font></div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: #ccffcc;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">&#160;</td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: #ccffcc;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">
                          <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">615,566
                            </font></div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                      </tr>
                      <tr bgcolor="white">
                        <td width="5%">&#160;</td>
                        <td width="3%">&#160;</td>
                        <td align="left" valign="bottom" width="30%" style="border-bottom: white;">&#160;</td>
                        <td width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="30%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      </tr>
                      <tr bgcolor="#ccffcc">
                        <td width="5%">&#160;</td>
                        <td width="3%">&#160;</td>
                        <td align="left" valign="bottom" width="30%" style="border-bottom: #ccffcc;">
                          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Principal
                            Global Investors S&amp;P 500 Idx AdvPr Fund</font></div>
                        </td>
                        <td width="2%" style="border-bottom: #ccffcc;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                        <td align="right" valign="bottom" width="30%" style="border-bottom: #ccffcc;">
                          <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">Interest
                            in registered investment company.</font></div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: #ccffcc;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">&#160;</td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: #ccffcc;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">
                          <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,240,703
                            </font></div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
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                      <tr bgcolor="white">
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                        <td align="left" valign="bottom" width="30%" style="border-bottom: white;">&#160;</td>
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                        <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
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                        <td width="3%">&#160;</td>
                        <td align="left" valign="bottom" width="30%" style="border-bottom: white;">&#160;</td>
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                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="30%" style="border-bottom: white;">&#160;</td>
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                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
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                        <td width="5%">&#160;</td>
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                        <td align="left" valign="bottom" width="30%" style="border-bottom: #ccffcc;">
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                        <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">&#160;</td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: #ccffcc;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
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                        <td width="5%">&#160;</td>
                        <td width="3%">&#160;</td>
                        <td align="left" valign="bottom" width="30%" style="border-bottom: white;">&#160;</td>
                        <td width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="30%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
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                        <td width="5%">&#160;</td>
                        <td width="3%">&#160;</td>
                        <td align="left" valign="bottom" width="30%" style="border-bottom: #ccffcc;">
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                        <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
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                        <td align="left" valign="bottom" width="2%" style="border-bottom: #ccffcc;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">&#160;</td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: #ccffcc;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">
                          <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">334,540</font></div>
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                        <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
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                        <td width="5%">&#160;</td>
                        <td width="3%">&#160;</td>
                        <td align="left" valign="bottom" width="30%" style="border-bottom: white;">&#160;</td>
                        <td width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="30%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
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                        <td width="5%">&#160;</td>
                        <td width="3%">&#160;</td>
                        <td align="left" valign="bottom" width="30%" style="border-bottom: #ccffcc;">
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                        <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
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                        <td align="left" valign="bottom" width="2%" style="border-bottom: #ccffcc;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">&#160;</td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: #ccffcc;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
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                        <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
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                        <td width="5%">&#160;</td>
                        <td width="3%">&#160;</td>
                        <td align="left" valign="bottom" width="30%" style="border-bottom: white;">&#160;</td>
                        <td width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="30%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
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                        <td width="5%">&#160;</td>
                        <td width="3%">&#160;</td>
                        <td align="left" valign="bottom" width="30%" style="border-bottom: #ccffcc;">
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                        <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
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                        <td align="left" valign="bottom" width="2%" style="border-bottom: #ccffcc;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">&#160;</td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: #ccffcc;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">
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                        <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
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                        <td width="5%">&#160;</td>
                        <td width="3%">&#160;</td>
                        <td align="left" valign="bottom" width="30%" style="border-bottom: white;">&#160;</td>
                        <td width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="30%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
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                        <td width="5%">&#160;</td>
                        <td width="3%">&#160;</td>
                        <td align="left" valign="bottom" width="30%" style="border-bottom: #ccffcc;">
                          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Principal
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                        <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
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                        <td align="left" valign="bottom" width="2%" style="border-bottom: #ccffcc;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">&#160;</td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: #ccffcc;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
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                          <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">956,516
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                        <td width="5%">&#160;</td>
                        <td width="3%">&#160;</td>
                        <td align="left" valign="bottom" width="30%" style="border-bottom: white;">&#160;</td>
                        <td width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="30%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
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                        <td width="5%">&#160;</td>
                        <td width="3%">&#160;</td>
                        <td align="left" valign="bottom" width="30%" style="border-bottom: #ccffcc;">
                          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Principal
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                        <td width="2%" style="border-bottom: #ccffcc;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                        <td align="right" valign="bottom" width="30%" style="border-bottom: #ccffcc;">
                          <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">Interest
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                        <td align="left" valign="bottom" width="2%" style="border-bottom: #ccffcc;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">&#160;</td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: #ccffcc;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">
                          <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">14,827</font></div>
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                        <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
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                      <tr bgcolor="white">
                        <td width="5%">&#160;</td>
                        <td width="3%">&#160;</td>
                        <td align="left" valign="bottom" width="30%" style="border-bottom: white;">&#160;</td>
                        <td width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="30%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
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                      <tr bgcolor="#ccffcc">
                        <td width="5%">&#160;</td>
                        <td width="3%">&#160;</td>
                        <td align="left" valign="bottom" width="30%" style="border-bottom: #ccffcc;">
                          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Principal
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                        </td>
                        <td width="2%" style="border-bottom: #ccffcc;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                        <td align="right" valign="bottom" width="30%" style="border-bottom: #ccffcc;">
                          <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">Interest
                            in registered investment company.</font></div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: #ccffcc;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">&#160;</td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: #ccffcc;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">
                          <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">84,559
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                        <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
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                      <tr bgcolor="white">
                        <td width="5%">&#160;</td>
                        <td width="3%">&#160;</td>
                        <td align="left" valign="bottom" width="30%" style="border-bottom: white;">&#160;</td>
                        <td width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="30%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
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                      <tr bgcolor="#ccffcc">
                        <td width="5%">&#160;</td>
                        <td width="3%">&#160;</td>
                        <td align="left" valign="bottom" width="30%" style="border-bottom: #ccffcc;">
                          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Capital
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                        </td>
                        <td width="2%" style="border-bottom: #ccffcc;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                        <td align="right" valign="bottom" width="30%" style="border-bottom: #ccffcc;">
                          <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">Interest
                            in registered investment companies.</font></div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: #ccffcc;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">&#160;</td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: #ccffcc;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">
                          <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,268,751</font></div>
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                        <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                      </tr>
                      <tr bgcolor="white">
                        <td width="5%">&#160;</td>
                        <td width="3%">&#160;</td>
                        <td align="left" valign="bottom" width="30%" style="border-bottom: white;">&#160;</td>
                        <td width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="30%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      </tr>
                      <tr bgcolor="#ccffcc">
                        <td valign="top" width="5%">
                          <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font size="2">*</font></div>
                        </td>
                        <td width="3%">&#160;</td>
                        <td align="left" valign="bottom" width="30%" style="border-bottom: #ccffcc solid;">
                          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Frequency
                            Electronics, Inc. Common Stock</font></div>
                        </td>
                        <td width="2%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                        <td align="right" valign="bottom" width="30%" style="border-bottom: #ccffcc thin solid;">
                          <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">Common
                            stock of Frequency Electronics, Inc Par value $1.00.</font></div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                          <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,448,415
                            </font></div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                          <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,544,572
                            </font></div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                      </tr>
                      <tr bgcolor="white">
                        <td width="5%">&#160;</td>
                        <td width="3%">&#160;</td>
                        <td align="left" valign="bottom" width="30%" style="border-bottom: white solid;">&#160;</td>
                        <td width="2%" style="border-bottom: white thin solid;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="30%" style="border-bottom: white thin solid;">&#160;</td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: white thin solid;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white thin solid;">&#160;</td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: white thin solid;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                          <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                        </td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                          <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">13,715,479</font></div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white solid;">&#160;</td>
                      </tr>
                      <tr bgcolor="#ccffcc">
                        <td valign="top" width="5%">
                          <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font size="2">*</font></div>
                        </td>
                        <td width="3%">&#160;</td>
                        <td align="left" valign="top" width="30%" style="border-bottom: #ccffcc solid;">
                          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Participant
                            loans</font></div>
                        </td>
                        <td width="2%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
                        <td align="right" valign="bottom" width="30%" style="border-bottom: #ccffcc thin solid;">
                          <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">Loans
                            to plan participants. Various maturity dates through
                            August 2014 with
                            interest at prevailing commercial rates (4.0% - 9.5%)
                            and secured by the
                            participants vested account balance.</font></div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                          <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                        </td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                          <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">-</font></div>
                        </td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: #ccffcc solid;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                          <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
                        </td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                          <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">376,585</font></div>
                        </td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc solid;">&#160;</td>
                      </tr>
                      <tr bgcolor="white">
                        <td width="5%">&#160;</td>
                        <td width="3%">&#160;</td>
                        <td align="left" valign="bottom" width="30%" style="border-bottom: white;">&#160;</td>
                        <td width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="30%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
                      </tr>

                  </table>
                </div>
                <div>&#160;</div>
                <div>
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                      <tr>
                        <td width="5%">&#160;</td>
                        <td width="3%">&#160;</td>
                        <td align="left" valign="bottom" width="30%" style="border-bottom: medium none;">
                          <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">*
                            Denotes party in interest.</font></div>
                        </td>
                        <td width="2%" style="border-bottom: medium none;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                        <td align="right" valign="bottom" width="30%" style="border-bottom: medium none;">&#160;</td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                      </tr>
                      <tr>
                        <td width="5%">&#160;</td>
                        <td width="3%">&#160;</td>
                        <td align="left" valign="bottom" width="30%" style="border-bottom: medium none;">&#160;</td>
                        <td width="2%" style="border-bottom: medium none;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                        <td align="right" valign="bottom" width="30%" style="border-bottom: medium none;">&#160;</td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
                        <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
                        <td align="right" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
                        <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
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            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div><br>
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                <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">10</font></div>
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<DOCUMENT>
<TYPE>EX-23.1
<SEQUENCE>2
<FILENAME>v087072_ex23-1.htm
<TEXT>
<html>
  <head>
    <title>

</title>
</head>
  <body bgcolor="#ffffff"><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Exhibit
      23.1</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">CONSENT
      OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      consent to the incorporation by reference in the Registration Statement No.
      333-40506 on Form S-8 pertaining to the Frequency Electronics, Inc. 401(k)
      Savings Plan of our report dated July 13, 2007 with respect to the financial
      statements and supplemental schedule of the Frequency Electronics, Inc. 401(k)
      Savings Plan included in this Annual Report on Form 11-K for the year ended
      December 31, 2006. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
      <table align="center" bgcolor="#ffffff" border="0" cellpadding="0" cellspacing="0" width="100%">

          <tr valign="top" bgcolor="#ffffff">
            <td width="50%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
            <td width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
            <td width="49%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
          </tr>
          <tr valign="top" bgcolor="#ffffff">
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
            <td colspan="2">&#160;</td>
          </tr>
          <tr valign="top" bgcolor="#ffffff">
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;<br>&#160;</font></td>
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;<br>&#160;</font></td>
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;<br>&#160;</font></td>
          </tr>
          <tr valign="top" bgcolor="#ffffff">
            <td>&#160;</td>
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">/s/&#160;HOLTZ
              RUBENSTEIN REMINICK, LLP</font></td>
          </tr>
          <tr valign="top" bgcolor="#ffffff">
            <td colspan="2"><font style="FONT-FAMILY: " size="1">&#160;</font></td>
            <td align="left">
              <hr style="COLOR: black" align="left" noshade size="2" width="45%"><font size="2">HOLTZ
              RUBENSTEIN REMINICK, LLP</font></td>
          </tr>
          <tr valign="top" bgcolor="#ffffff">
            <td colspan="2"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
            <td>&#160;</td>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Melville,
      New York</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">September
      6, 2007</font></div>
  </body>
</html>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>3
<FILENAME>v087072_ex99-1.htm
<TEXT>
<html>
  <head>
    <title>
</title>
</head>
  <body bgcolor="#ffffff"><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Exhibit
      99.1</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">CERTIFICATION
      OF CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICER OF FREQUENCY ELECTRONICS,
      INC.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Each
      of
      the undersigned hereby certifies, for the purposes of Section 1350 of Chapter
      63
      of Title 18 of the United States Code, as adopted pursuant to Section 906 of
      the
      Sarbanes-Oxley Act of 2002, in his capacity as an officer of Frequency
      Electronics, Inc. that, to his knowledge, the Annual Report for the Frequency
      Electronics, Inc. 401(k) Savings Plan on Form 11-K for the year ended December
      31, 2006 fully complies with the requirements of Section 13(a) or 15(d) of
      the
      Securities Exchange Act of 1934 and that the information contained in such
      report fairly presents, in all material respects, the net assets available
      for
      benefits and changes in net assets available for benefits of the Plan. This
      written statement is being furnished to the Securities and Exchange Commission
      as an exhibit to such Form 11-K.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Date:
      September 6, 2007</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">By:
      /s/Martin Bloch</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">--------------------------</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 27pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Martin
      Bloch</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 27pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Chief
      Executive Officer</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Date:
      September 6, 2007</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">By:
      /s/Alan Miller</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">----------------------</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 27pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Alan
      Miller </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB1" style="MARGIN-LEFT: 27pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Chief
      Financial Officer</font></div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
  </body>
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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.2
<SEQUENCE>4
<FILENAME>v087072_ex99-2.htm
<TEXT>
<html>
  <head>
    <title>
</title>
</head>
  <body bgcolor="#ffffff"><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Exhibit
      99.2</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Certification
      by a Trustee of the Frequency Electronics, Inc. 401(k) Savings Plan Pursuant
      to
      Section 906 of the Sarbanes-Oxley Act </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Certification below is being submitted to the Securities and Exchange Commission
      solely for the purpose of complying with Section 1350 of Chapter 63 of Title
      18
      of the United States Code.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      my
      capacity as a trustee of the Frequency Electronics, Inc. 401(k) Savings Plan,
      I
      hereby certify that, to the best of my knowledge, Frequency Electronics, Inc.
      401(k) Savings Plan&#8217;s annual report on Form 11-K for the fiscal year ended
      December 31, 2006 as filed with the Securities and Exchange Commission on the
      date hereof fully complies with the requirements of Section 13(a) or 15(d)
      of
      the Securities Exchange Act of 1934 and the information contained in such annual
      report fairly presents, in all material respects, the financial condition and
      results of operations of the Frequency Electronics, Inc. 401(k) Savings
      Plan.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">/s/
      Robert Klomp</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">---------------------</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Robert
      Klomp</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Trustee,
      Frequency Electronics, Inc. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">401(k)
      Savings Plan</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Dated:
      September 6, 2007</font></div>
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</SEC-DOCUMENT>
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