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Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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<SEC-DOCUMENT>0000700841-08-000023.txt : 20080508
<SEC-HEADER>0000700841-08-000023.hdr.sgml : 20080508
<ACCEPTANCE-DATETIME>20080508110854
ACCESSION NUMBER:		0000700841-08-000023
CONFORMED SUBMISSION TYPE:	10-Q
PUBLIC DOCUMENT COUNT:		6
CONFORMED PERIOD OF REPORT:	20080329
FILED AS OF DATE:		20080508
DATE AS OF CHANGE:		20080508

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			RCM TECHNOLOGIES INC
		CENTRAL INDEX KEY:			0000700841
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-HELP SUPPLY SERVICES [7363]
		IRS NUMBER:				951480559
		STATE OF INCORPORATION:			NV
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		10-Q
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-10245
		FILM NUMBER:		08812489

	BUSINESS ADDRESS:	
		STREET 1:		2500 MCCLELLAN AVENUE
		STREET 2:		STE 350
		CITY:			PENNSAUKEN
		STATE:			NJ
		ZIP:			08109-4613
		BUSINESS PHONE:		8564861777

	MAIL ADDRESS:	
		STREET 1:		2500 MCCLELLAN AVENUE
		STREET 2:		STE 350
		CITY:			PENNSAUKEN
		STATE:			NJ
		ZIP:			08109-4613
</SEC-HEADER>
<DOCUMENT>
<TYPE>10-Q
<SEQUENCE>1
<FILENAME>form10q032908.htm
<DESCRIPTION>FORM 10Q032908
<TEXT>
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    <head>
        <title></title>
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            <p style="MARGIN-TOP: 0pt; FONT-WEIGHT: bold; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b>UNITED STATES</b></p>

            <p style="MARGIN-TOP: 0pt; FONT-WEIGHT: bold; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b>SECURITIES AND EXCHANGE COMMISSION</b></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b>Washington, D.C. 20549<br>
            &nbsp;<br>
             FORM 10-Q</b></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 11pt">(Mark One)</font></p>

            <p></p>

            <p></p>

            <table cellspacing="0" cellpadding="0" width="600" border="0">
                <tr>
                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="37">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b><font style="FONT-SIZE: 11pt">[X]</font></b></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="24">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="577">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b><font style="FONT-SIZE: 11pt">QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d)</font></b></p>

                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b><font style="FONT-SIZE: 11pt">OF THE SECURITIES EXCHANGE ACT OF 1934</font></b></p>
                    </td>
                </tr>
            </table>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 11pt">For the quarterly period ended&nbsp;</font><b><font style="FONT-SIZE: 11pt">March 29, 2008</font></b><br>
            <b><font style="FONT-SIZE: 11pt">OR</font></b></p>

            <table cellspacing="0" cellpadding="0" width="600" border="0">
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                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="37">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b><font style="FONT-SIZE: 11pt">[ ]</font></b></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="24">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="577">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b><font style="FONT-SIZE: 11pt">TRANSITION REPORT PURSUANT TO SECTION 13 or</font></b> <b><font style="FONT-SIZE: 11pt">15(d)</font></b></p>

                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b><font style="FONT-SIZE: 11pt">OF THE SECURITIES EXCHANGE ACT OF 1934</font></b></p>
                    </td>
                </tr>
            </table>
            <br>

            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-WEIGHT: bold; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; TEXT-DECORATION: underline" align="center"><b><font style="FONT-WEIGHT: normal; FONT-SIZE: 11pt">For the transition period from&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font> <font style="FONT-WEIGHT: normal; FONT-SIZE: 11pt">to&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 11pt">Commission file number:</font> <b><font style="FONT-SIZE: 11pt">1-10245</font></b><br>
            <b><font style="FONT-SIZE: 14pt">RCM TECHNOLOGIES, INC.</font></b></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 11pt">(Exact Name of Registrant as Specified in Its Charter)</font></p>

            <table cellspacing="0" cellpadding="0" width="600" align="center" border="0">
                <tr>
                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="210">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b><u><font style="FONT-SIZE: 11pt">Nevada</font></u></b></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="246">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b><u><font style="FONT-SIZE: 11pt">95-1480559</font></u></b></p>
                    </td>
                </tr>

                <tr>
                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="210">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 11pt">(State</font> <font style="FONT-SIZE: 11pt">or other Jurisdiction</font> <font style="FONT-SIZE: 11pt">of Incorporation)</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="246">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 11pt">(I.R.S. Employer Identification No.)</font></p>
                    </td>
                </tr>
            </table>
            <br>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b><font style="FONT-SIZE: 11pt">2500 McClellan Avenue, Suite 350, Pennsauken, New Jersey 08109-4613</font></b><br>
            <font style="FONT-SIZE: 11pt">(Address of Principal Executive Offices)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Zip Code)</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b><u><font style="FONT-SIZE: 11pt">(856) 486-1777</font></u></b><br>
            <font style="FONT-SIZE: 11pt">(Registrant's Telephone Number, Including Area Code)</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">Indicate by check mark whether the Registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.</font></p>

            <p></p>

            <table cellspacing="0" cellpadding="0" width="600" border="0">
                <tr>
                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="43">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">YES</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="top" width="30">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt">X</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="36">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="36">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">NO</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="top" width="30">&nbsp;</td>
                </tr>
            </table>
            <br>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt">Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. (See the definitions of &ldquo;large accelerated filer,&rdquo; &ldquo;accelerated filer&rdquo; and &ldquo;smaller reporting company&rdquo; in Rule 12b-2 of the Exchange Act). (Check one):</font></p>

            <p></p>

            <table cellspacing="0" cellpadding="0" width="600" border="0">
                <tr>
                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="169">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">Large Accelerated Filer ___</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="140">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">Accelerated Filer ___</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="165">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">Non-Accelerated Filer ___<br>
                        (Do not check if a smaller reporting company)</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="201">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">Smaller Reporting Company</font><u><font style="FONT-SIZE: 10pt; COLOR: #ffffff">x</font></u><u><font style="FONT-SIZE: 10pt">X</font></u> <u><font style="FONT-SIZE: 10pt; COLOR: #ffffff">x</font></u></p>
                    </td>
                </tr>
            </table>
            <br>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).</font></p>

            <p></p>

            <table cellspacing="0" cellpadding="0" width="600" border="0">
                <tr>
                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="43">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">YES</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="top" width="30">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="36">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="36">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">NO</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="top" width="30">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">X</font></p>
                    </td>
                </tr>
            </table>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">Indicate the number of shares outstanding of the Registrant's class of common stock, as of the latest</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">&nbsp;practicable date.</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt">Common Stock, $0.05 par value, 12,758,689</font> <font style="FONT-SIZE: 10pt">shares outstanding as of&nbsp; May 7, 2008.</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"></p>
            <hr align="center" width="100%" noshade size="2">
            <br>
            <br>

            <p style="PAGE-BREAK-AFTER: always"></p>
            <!-- EEDocs PBEnd-->

            <p style="MARGIN-TOP: 0pt; FONT-WEIGHT: bold; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b>RCM TECHNOLOGIES, INC. AND SUBSIDIARIES</b></p>

            <p></p>

            <p></p>

            <table style="MARGIN-LEFT: 0.2in" cellspacing="0" cellpadding="0" width="600" border="0">
                <tr bgcolor="#ccffff">
                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="top" width="516" colspan="4">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><b><font style="FONT-SIZE: 10pt">PART I &ndash; FINANCIAL INFORMATION</font></b></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="18">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="54">&nbsp;</td>
                </tr>

                <tr>
                    <td style="PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="48" colspan="2">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="468" colspan="2">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="18">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="54">
                        <p style="MARGIN-TOP: 0pt; FONT-WEIGHT: bold; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b>Page</b></p>
                    </td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="24">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="492" colspan="3">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><b><font style="FONT-SIZE: 10pt">Item 1 -</font></b><font style="FONT-SIZE: 10pt">Consolidated Financial Statements</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="18">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="54">&nbsp;</td>
                </tr>

                <tr>
                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="24">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="492" colspan="3">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="18">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="54">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="24">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="48" colspan="2">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="444">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">Consolidated Balance Sheets as of March 29, 2008 (Unaudited)<br>
                        and December 29, 2007</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="18">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="54">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt">3</font></p>
                    </td>
                </tr>

                <tr>
                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="24">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="48" colspan="2">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="444">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="18">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="54">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="24">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="48" colspan="2">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="444">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">Unaudited Consolidated Statements of Operations for the Thirteen Weeks Ended March 29, 2008 and March 31, 2007</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="18">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="54">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt">5</font></p>
                    </td>
                </tr>

                <tr>
                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="24">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="48" colspan="2">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="444">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="18">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="54">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="24">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="48" colspan="2">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="444">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">Unaudited Consolidated Statement of Changes in Stockholders'<br>
                        Equity for the Thirteen Weeks Ended March 29, 2008 and March 31, 2007</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="18">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="54">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt">6</font></p>
                    </td>
                </tr>

                <tr>
                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="24">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="48" colspan="2">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="444">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="18">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="54">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="24">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="48" colspan="2">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="444">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">Unaudited Consolidated Statements of Cash Flows for the Thirteen Weeks Ended March 29, 2008 and March 31, 2007</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="18">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="54">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt">7</font></p>
                    </td>
                </tr>

                <tr>
                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="24">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="48" colspan="2">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="444">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="18">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="54">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="24">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="48" colspan="2">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="444">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">Notes to Unaudited Consolidated Financial Statements</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="18">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="54">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt">9</font></p>
                    </td>
                </tr>

                <tr>
                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="24">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="48" colspan="2">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="444">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="18">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="54">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="24">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="492" colspan="3">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><b><font style="FONT-SIZE: 10pt">Item 2 -</font></b><font style="FONT-SIZE: 10pt">Management's Discussion and Analysis of Financial Condition<br>
                        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;and Results of Operations</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="18">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="54">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt">21</font></p>
                    </td>
                </tr>

                <tr>
                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="24">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="24">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="468" colspan="2">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="18">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="54">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="24">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="492" colspan="3">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><b><font style="FONT-SIZE: 10pt">Item 3</font></b> <font style="FONT-SIZE: 10pt">- Quantitative and Qualitative Disclosures About Market Risk</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="18">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="54">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt">33</font></p>
                    </td>
                </tr>

                <tr style="HEIGHT: 12.1pt">
                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="24">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="24">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="468" colspan="2">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="18">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="54">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="24">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="492" colspan="3">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><b><font style="FONT-SIZE: 10pt">Item 4</font></b> <font style="FONT-SIZE: 10pt">- Controls and Procedures</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="18">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="54">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt">33</font></p>
                    </td>
                </tr>

                <tr>
                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="24">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="24">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="468" colspan="2">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="18">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="54">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="top" width="534" colspan="5">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><b><font style="FONT-SIZE: 10pt">PART II - OTHER INFORMATION</font></b></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="top" width="54">&nbsp;</td>
                </tr>

                <tr>
                    <td style="PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="24">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="24">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="468" colspan="2">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="18">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="54">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="24">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="492" colspan="3">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><b><font style="FONT-SIZE: 10pt">Item 1</font></b> <font style="FONT-SIZE: 10pt">- Legal Proceedings</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="18">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="54">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt">34</font></p>
                    </td>
                </tr>

                <tr>
                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="24">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="24">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="468" colspan="2">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="18">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="54">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="24">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="492" colspan="3">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><b><font style="FONT-SIZE: 10pt">Item</font></b> <b><font style="FONT-SIZE: 10pt">1A</font></b> <font style="FONT-SIZE: 10pt">- Risk Factors</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="18">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="54">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt">34</font></p>
                    </td>
                </tr>

                <tr>
                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="24">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="24">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="468" colspan="2">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="18">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="54">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="24">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="492" colspan="3">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><b><font style="FONT-SIZE: 10pt">Item 6</font></b> <font style="FONT-SIZE: 10pt">- Exhibits</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="18">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="54">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt">35</font></p>
                    </td>
                </tr>

                <tr>
                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="24">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="24">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="468" colspan="2">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="18">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="54">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="24">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="492" colspan="3">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><b><font style="FONT-SIZE: 10pt">Signatures</font></b></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="18">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="54">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt">36</font></p>
                    </td>
                </tr>

                <tr>
                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="24">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="492" colspan="3">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="18">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="54">&nbsp;</td>
                </tr>
            </table>
            <br>
            <br>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">&nbsp;&nbsp;&nbsp;&nbsp;<font size="2">&nbsp;2</font></p>

            <p></p>
            <!-- NEXT PAGE SECTION BREAK  --><!-- EEDocs PBStart-->
            <hr align="center" width="100%" noshade size="2">

            <p style="PAGE-BREAK-AFTER: always"></p>
            <!-- EEDocs PBEnd-->

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; BORDER-BOTTOM: 0.5pt solid" align="justify"><b><font style="FONT-SIZE: 10pt">ITEM 1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CONSOLIDATED FINANCIAL STATEMENTS</font></b></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b><font style="FONT-SIZE: 10pt">RCM TECHNOLOGIES, INC. AND SUBSIDIARIES<br>
            CONSOLIDATED BALANCE SHEETS<br>
            March 29, 2008 and December 29, 2007</font></b></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><i><font style="FONT-SIZE: 10pt">(Dollars in thousands, except share and per share amounts, unless otherwise indicated)</font></i></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b><font style="FONT-SIZE: 10pt">ASSETS<br>
            &nbsp;</font></b></p>

            <p></p>

            <table cellspacing="0" cellpadding="0" width="630" border="0">
                <tr bgcolor="#ccffff">
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="16">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="15" colspan="2">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="364">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="12">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="84">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt">March</font> <font style="FONT-SIZE: 10pt">29,</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="84">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt">December 29,</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr>
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="16">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="15" colspan="2">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="364">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="12">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="84">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt">2008</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="84">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt">2007</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="396" colspan="4">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="12">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="84">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt">(Unaudited)</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="84">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr>
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="396" colspan="4">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">Current assets</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="12">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="84">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="84">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="16">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="379" colspan="3">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">Cash and cash equivalents</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="12">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="84">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">$4,658</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="84">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">$11,642</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr>
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="16">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="379" colspan="3">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">Accounts receivable, net of allowance for doubtful accounts</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="12">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="84">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="84">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="16">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="13">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="366" colspan="2">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">of $1,486</font> <font style="FONT-SIZE: 10pt">(March 29, 2008) and $1,583</font> <font style="FONT-SIZE: 10pt">(December 29, 2007), respectively</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="12">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="84">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">49,910</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="84">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">45,468</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr>
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="16">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="379" colspan="3">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.1in" align="left"><font style="FONT-SIZE: 10pt">Note</font> <font style="FONT-SIZE: 10pt">receivable-current portion, net of allowance for doubtful account of $2,419 at March 29, 2008</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="12">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="84">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="84">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">1,893</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="16">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="379" colspan="3">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">Prepaid expenses and other current assets</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="12">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="84">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">1,449</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="84">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">1,493</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr>
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="16">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="379" colspan="3">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">Deferred tax assets</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="12">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="84">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">2,899</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="84">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">711</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="16">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="13">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="366" colspan="2">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="12">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="84">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="84">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr>
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="16">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="13">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="366" colspan="2">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">Total current assets</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="12">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="84">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">58,916</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="84">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">61,207</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="16">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="13">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="366" colspan="2">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="12">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="84">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="84">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr>
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="396" colspan="4">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="12">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="84">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="84">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="396" colspan="4">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">Property and equipment, at cost</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="12">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="84">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="84">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr>
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="16">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="379" colspan="3">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">Equipment and leasehold improvements</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="12">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="84">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">9,778</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="84">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">9,407</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="16">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="379" colspan="3">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">Less: accumulated depreciation and amortization</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="12">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="84">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">4,746</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="84">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">5,178</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr>
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="16">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="13">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="366" colspan="2">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="12">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="84">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="84">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="16">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="13">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="366" colspan="2">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="12">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="84">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">5,032</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="84">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">4,229</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr>
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="16">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="13">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="366" colspan="2">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="12">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="84">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="84">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="396" colspan="4">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">Other assets</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="12">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="84">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="84">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr>
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="16">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="379" colspan="3">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.1in" align="left"><font style="FONT-SIZE: 10pt">Note</font> <font style="FONT-SIZE: 10pt">receivable</font> <font style="FONT-SIZE: 10pt">&ndash; long term, net of allowance for doubtful account of $3,671 at March 29, 2008</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="12">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="84">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="84">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">4,216</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="16">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="379" colspan="3">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">Deposits</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="12">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="84">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">155</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="84">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">125</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr>
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="16">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="379" colspan="3">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">Goodwill</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="12">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="84">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">47,396</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="84">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">39,588</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="16">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="379" colspan="3">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">Intangible assets, net of accumulated amortization</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="12">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="84">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="84">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr>
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="16">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="13">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="366" colspan="2">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">of $806 (March 29, 2008) and $</font> <font style="FONT-SIZE: 10pt">726</font> <font style="FONT-SIZE: 10pt">(December 29, 2007), respectively</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="12">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="84">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">269</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="84">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">349</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="16">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="13">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="366" colspan="2">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="12">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="84">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="84">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr>
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="16">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="13">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="366" colspan="2">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="12">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="84">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">47,820</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="84">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">44,278</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="16">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="13">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="366" colspan="2">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="12">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="84">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="84">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr>
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 2pt double" valign="bottom" width="16">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 2pt double" valign="bottom" width="13">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 2pt double" valign="bottom" width="366" colspan="2">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">Total assets</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 2pt double" valign="bottom" width="12">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 2pt double" valign="bottom" width="84">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">$111,768</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 2pt double" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 2pt double" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 2pt double" valign="bottom" width="84">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">$109,714</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>
                </tr>
            </table>

            <p align="center"><font size="2">The accompanying notes are an intergral part of these financial statements.</font></p>

            <p align="center"><font size="2">3</font></p>
            <!-- EEDocs PBStart-->

            <p style="PAGE-BREAK-BEFORE: always"></p>
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            <p>&nbsp;</p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b><font style="FONT-SIZE: 10pt">RCM TECHNOLOGIES, INC. AND SUBSIDIARIES<br>
            CONSOLIDATED BALANCE SHEETS &ndash; (Continued)<br>
            March 29, 2008 and December 29, 2007</font></b></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; BORDER-BOTTOM: 0.5pt solid" align="center"><i><font style="FONT-SIZE: 10pt">(Dollars in thousands, except share and per share amounts, unless otherwise indicated)</font></i></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-WEIGHT: bold; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b>LIABILITIES AND STOCKHOLDERS' EQUITY</b></p>

            <p></p>

            <p></p>

            <table cellspacing="0" cellpadding="0" width="622" border="0">
                <tr bgcolor="#ccffff">
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="17" colspan="2">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="15">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="356">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="77">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt">March</font> <font style="FONT-SIZE: 10pt">29,</font></p>

                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt">2008</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="23">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="76">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt">December 29,<br>
                        2007</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr>
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="390" colspan="4">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="77">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt">(Unaudited)</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="23">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="76">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="390" colspan="4">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">Current liabilities&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="77">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="23">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="76">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr>
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="16">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="374" colspan="3">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">Line of credit</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="77">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">$5,000</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="23">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="76">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="16">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="374" colspan="3">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">Accounts payable and accrued expenses</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="77">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">6,215</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="23">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="76">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">$8,005</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr>
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="16">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="374" colspan="3">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">Accrued compensation</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="77">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">6,128</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="23">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="76">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">7,418</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="16">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="374" colspan="3">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">Payroll and withheld taxes</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="77">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">1,213</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="23">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="76">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">1,087</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr>
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="16">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="374" colspan="3">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">Income taxes payable</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="77">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="23">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="76">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">1,156</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="33" colspan="3">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="356">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="77">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="23">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="76">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr>
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="33" colspan="3">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="356">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">Total current liabilities</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="77">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">18,556</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="23">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="76">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">17,666</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="33" colspan="3">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="356">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="77">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="23">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="76">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr>
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="390" colspan="4">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="77">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="23">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="76">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="390" colspan="4">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">Stockholders' equity</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="77">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="23">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="76">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr>
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="17" colspan="2">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="372" colspan="2">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">Preferred stock, $1.00 par value; 5,000,000 shares authorized;</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="77">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="23">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="76">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="17" colspan="2">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="15">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="356">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">no shares issued or outstanding</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="77">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="23">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="76">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr>
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="17" colspan="2">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="372" colspan="2">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">Common stock, $0.05 par value; 40,000,000 shares authorized;</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="77">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="23">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="76">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="17" colspan="2">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="15">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="356">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">12,758,689</font> <font style="FONT-SIZE: 10pt">and 12,058,689 shares issued and outstanding<br>
                        at March</font> <font style="FONT-SIZE: 10pt">29, 2008</font> <font style="FONT-SIZE: 10pt">and December 29, 2007, respectively</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="77">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">638</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="23">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="76">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">&nbsp;</p>

                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">&nbsp;</p>

                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">603</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr>
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="17" colspan="2">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="372" colspan="2">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">Additional paid-in capital</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="77">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">106,726</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="23">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="76">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">102,951</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="17" colspan="2">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="372" colspan="2">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">Accumulated other comprehensive income</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="77">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">1,507</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="23">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="76">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">1,484</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr>
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="17" colspan="2">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="372" colspan="2">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">Accumulated deficit</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="77">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">(15,659</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="18">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">)</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="23">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="76">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">(12,990</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">)</font></p>
                    </td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="17" colspan="2">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="15">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="356">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="77">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="23">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="76">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr>
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="17" colspan="2">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="15">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="356">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="77">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">93,212</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="23">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="76">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">92,048</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="17" colspan="2">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="15">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="356">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="77">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="23">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="76">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr>
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="17" colspan="2">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="15">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="356">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="77">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="23">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="76">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="17" colspan="2">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="15">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="356">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="77">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="23">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="76">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr>
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="17" colspan="2">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="15">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="356">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="77">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="23">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="76">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="17" colspan="2">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="15">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="356">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="77">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="23">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="76">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr>
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 2pt double" valign="bottom" width="17" colspan="2">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 2pt double" valign="bottom" width="15">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 2pt double" valign="bottom" width="356">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">Total liabilities and stockholders&rsquo; equity</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 2pt double" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 2pt double" valign="bottom" width="77">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">$111,768</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 2pt double" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 2pt double" valign="bottom" width="23">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 2pt double" valign="bottom" width="76">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">$109,714</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>
                </tr>
            </table>

            <p align="center">&nbsp;</p>

            <p align="center"><font size="2">The accompanying notes are an intergral part of these financial statements.<br>
            </font></p>

            <p align="center"><font size="2">4</font></p>
            <!-- EEDocs PBStart-->

            <p style="PAGE-BREAK-BEFORE: always"></p>
            <!-- EEDocs PBEnd-->

            <p align="center">&nbsp;</p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-WEIGHT: bold; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b>RCM TECHNOLOGIES, INC. AND SUBSIDIARIES</b></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b><font style="FONT-SIZE: 10pt">CONSOLIDATED STATEMENTS OF OPERATIONS<br>
            Thirteen Weeks Ended March 29, 2008 and March 31, 2007<br>
            (Unaudited)</font></b></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; BORDER-BOTTOM: 0.5pt solid" align="center"><i><font style="FONT-SIZE: 10pt">(Dollars in thousands, except share and per share amounts, unless otherwise indicated)</font></i></p>

            <p></p>

            <p></p>

            <table cellspacing="0" cellpadding="0" width="624" border="0">
                <tr bgcolor="#ccffff">
                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="388">&nbsp;</td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="16">&nbsp;</td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="85">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000">March 29,<br>
                        2008</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="17">&nbsp;</td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="79">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000">March 31,<br>
                        2007</font></p>
                    </td>

                    <td valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr>
                    <td style="BORDER-TOP: medium none" valign="bottom" width="388">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="16">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="85">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="17">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="79">&nbsp;</td>

                    <td valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td valign="bottom" width="388">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt">Revenues</font></p>
                    </td>

                    <td valign="bottom" width="16">&nbsp;</td>

                    <td valign="bottom" width="85">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">$49,114</font></p>
                    </td>

                    <td valign="bottom" width="18">&nbsp;</td>

                    <td valign="bottom" width="17">&nbsp;</td>

                    <td valign="bottom" width="79">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">$54,493</font></p>
                    </td>

                    <td valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr>
                    <td valign="bottom" width="388">&nbsp;</td>

                    <td valign="bottom" width="16">&nbsp;</td>

                    <td valign="bottom" width="85">&nbsp;</td>

                    <td valign="bottom" width="18">&nbsp;</td>

                    <td valign="bottom" width="17">&nbsp;</td>

                    <td valign="bottom" width="79">&nbsp;</td>

                    <td valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="388">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt">Cost of services</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="16">&nbsp;</td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="85">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">36,816</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="17">&nbsp;</td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="79">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">42,117</font></p>
                    </td>

                    <td valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr>
                    <td style="BORDER-TOP: medium none" valign="bottom" width="388">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="16">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="85">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="17">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="79">&nbsp;</td>

                    <td valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="388">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt">Gross profit</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="16">&nbsp;</td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="85">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">12,298</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="17">&nbsp;</td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="79">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">12,376</font></p>
                    </td>

                    <td valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr>
                    <td style="BORDER-TOP: medium none" valign="bottom" width="388">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="16">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="85">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="17">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="79">&nbsp;</td>

                    <td valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td valign="bottom" width="388">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt">Operating costs and expenses</font></p>
                    </td>

                    <td valign="bottom" width="16">&nbsp;</td>

                    <td valign="bottom" width="85">&nbsp;</td>

                    <td valign="bottom" width="18">&nbsp;</td>

                    <td valign="bottom" width="17">&nbsp;</td>

                    <td valign="bottom" width="79">&nbsp;</td>

                    <td valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr>
                    <td valign="bottom" width="388">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt">Selling, general and administrative</font></p>
                    </td>

                    <td valign="bottom" width="16">&nbsp;</td>

                    <td valign="bottom" width="85">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">10,485</font></p>
                    </td>

                    <td valign="bottom" width="18">&nbsp;</td>

                    <td valign="bottom" width="17">&nbsp;</td>

                    <td valign="bottom" width="79">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">10,094</font></p>
                    </td>

                    <td valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td valign="bottom" width="388">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt">Bad debt - note receivable</font></p>
                    </td>

                    <td valign="bottom" width="16">&nbsp;</td>

                    <td valign="bottom" width="85">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">6,090</font></p>
                    </td>

                    <td valign="bottom" width="18">&nbsp;</td>

                    <td valign="bottom" width="17">&nbsp;</td>

                    <td valign="bottom" width="79">&nbsp;</td>

                    <td valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr>
                    <td valign="bottom" width="388">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt">Depreciation</font></p>
                    </td>

                    <td valign="bottom" width="16">&nbsp;</td>

                    <td valign="bottom" width="85">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">281</font></p>
                    </td>

                    <td valign="bottom" width="18">&nbsp;</td>

                    <td valign="bottom" width="17">&nbsp;</td>

                    <td valign="bottom" width="79">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">274</font></p>
                    </td>

                    <td valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="388">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt">Amortization</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="16">&nbsp;</td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="85">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">80</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="17">&nbsp;</td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="79">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">80</font></p>
                    </td>

                    <td valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr>
                    <td style="BORDER-TOP: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="388">&nbsp;</td>

                    <td style="BORDER-TOP: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="16">&nbsp;</td>

                    <td style="BORDER-TOP: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="85">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">16,936</font></p>
                    </td>

                    <td style="BORDER-TOP: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-TOP: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="17">&nbsp;</td>

                    <td style="BORDER-TOP: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="79">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">10,448</font></p>
                    </td>

                    <td valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td style="BORDER-TOP: medium none" valign="bottom" width="388">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="16">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="85">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="17">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="79">&nbsp;</td>

                    <td valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr>
                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="388">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt">Operating (loss) income</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="16">&nbsp;</td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="85">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">(4,638</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="18">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000">)</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="17">&nbsp;</td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="79">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">1,928</font></p>
                    </td>

                    <td valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td style="BORDER-TOP: medium none" valign="bottom" width="388">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="16">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="85">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="17">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="79">&nbsp;</td>

                    <td valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr>
                    <td valign="bottom" width="388">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt">Other income (expense)</font></p>
                    </td>

                    <td valign="bottom" width="16">&nbsp;</td>

                    <td valign="bottom" width="85">&nbsp;</td>

                    <td valign="bottom" width="18">&nbsp;</td>

                    <td valign="bottom" width="17">&nbsp;</td>

                    <td valign="bottom" width="79">&nbsp;</td>

                    <td valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td valign="bottom" width="388">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt">Interest income (expense), net</font></p>
                    </td>

                    <td valign="bottom" width="16">&nbsp;</td>

                    <td valign="bottom" width="85">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">26</font></p>
                    </td>

                    <td valign="bottom" width="18">&nbsp;</td>

                    <td valign="bottom" width="17">&nbsp;</td>

                    <td valign="bottom" width="79">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">(8</font></p>
                    </td>

                    <td valign="bottom" width="18">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000">)</font></p>
                    </td>
                </tr>

                <tr>
                    <td valign="bottom" width="388">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt">Gain (loss) on foreign currency transactions</font></p>
                    </td>

                    <td valign="bottom" width="16">&nbsp;</td>

                    <td valign="bottom" width="85">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">1</font></p>
                    </td>

                    <td valign="bottom" width="18">&nbsp;</td>

                    <td valign="bottom" width="17">&nbsp;</td>

                    <td valign="bottom" width="79">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">(2</font></p>
                    </td>

                    <td valign="bottom" width="18">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000">)</font></p>
                    </td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="388">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt">Legal settlement</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="16">&nbsp;</td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="85">&nbsp;</td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="17">&nbsp;</td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="79">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">800</font></p>
                    </td>

                    <td valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr>
                    <td style="BORDER-TOP: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="388">&nbsp;</td>

                    <td style="BORDER-TOP: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="16">&nbsp;</td>

                    <td style="BORDER-TOP: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="85">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">27</font></p>
                    </td>

                    <td style="BORDER-TOP: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-TOP: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="17">&nbsp;</td>

                    <td style="BORDER-TOP: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="79">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">790</font></p>
                    </td>

                    <td valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td style="BORDER-TOP: medium none" valign="bottom" width="388">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="16">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="85">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="17">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="79">&nbsp;</td>

                    <td valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr>
                    <td valign="bottom" width="388">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt">(Loss) income before income taxes</font></p>
                    </td>

                    <td valign="bottom" width="16">&nbsp;</td>

                    <td valign="bottom" width="85">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">(4,611</font></p>
                    </td>

                    <td valign="bottom" width="18">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000">)</font></p>
                    </td>

                    <td valign="bottom" width="17">&nbsp;</td>

                    <td valign="bottom" width="79">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">2,718</font></p>
                    </td>

                    <td valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td valign="bottom" width="388">&nbsp;</td>

                    <td valign="bottom" width="16">&nbsp;</td>

                    <td valign="bottom" width="85">&nbsp;</td>

                    <td valign="bottom" width="18">&nbsp;</td>

                    <td valign="bottom" width="17">&nbsp;</td>

                    <td valign="bottom" width="79">&nbsp;</td>

                    <td valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr>
                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="388">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt">Income tax (benefit) expense</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="16">&nbsp;</td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="85">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">(1,942</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="18">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000">)</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="17">&nbsp;</td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="79">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">1,147</font></p>
                    </td>

                    <td valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td style="BORDER-TOP: medium none" valign="bottom" width="388">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="16">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="85">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="17">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="79">&nbsp;</td>

                    <td valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr>
                    <td style="BORDER-BOTTOM: black 2pt double" valign="bottom" width="388">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000">Net (loss) income</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 2pt double" valign="bottom" width="16">&nbsp;</td>

                    <td style="BORDER-BOTTOM: black 2pt double" valign="bottom" width="85">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">($2,669</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 2pt double" valign="bottom" width="18">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000">)</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 2pt double" valign="bottom" width="17">&nbsp;</td>

                    <td style="BORDER-BOTTOM: black 2pt double" valign="bottom" width="79">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">$1,571</font></p>
                    </td>

                    <td style="BORDER-LEFT: medium none" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td style="BORDER-TOP: medium none" valign="bottom" width="388">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="16">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="85">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="17">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="79">&nbsp;</td>

                    <td style="BORDER-LEFT: medium none" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr>
                    <td valign="bottom" width="388">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000">Basic (loss) earnings per share</font></p>
                    </td>

                    <td valign="bottom" width="16">&nbsp;</td>

                    <td valign="bottom" width="85">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">($.22</font></p>
                    </td>

                    <td valign="bottom" width="18">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000">)</font></p>
                    </td>

                    <td valign="bottom" width="17">&nbsp;</td>

                    <td valign="bottom" width="79">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">$.13</font></p>
                    </td>

                    <td style="BORDER-LEFT: medium none" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td valign="bottom" width="388">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000">Diluted (loss) earnings per share</font></p>
                    </td>

                    <td valign="bottom" width="16">&nbsp;</td>

                    <td valign="bottom" width="85">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">($.22</font></p>
                    </td>

                    <td valign="bottom" width="18">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000">)</font></p>
                    </td>

                    <td valign="bottom" width="17">&nbsp;</td>

                    <td valign="bottom" width="79">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">$.13</font></p>
                    </td>

                    <td style="BORDER-LEFT: medium none" valign="bottom" width="18">&nbsp;</td>
                </tr>
            </table>

            <p align="center"><br>
            <font size="2">The accompanying notes are an intergral part of these financial statements.</font></p>

            <p align="center"><font size="2">5</font></p>

            <p></p>
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            <p style="PAGE-BREAK-AFTER: always"></p>
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            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b><font style="FONT-SIZE: 10pt">RCM TECHNOLOGIES, INC. AND SUBSIDIARIES</font></b></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b><font style="FONT-SIZE: 10pt">CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY<br>
            (Unaudited)</font></b></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; BORDER-BOTTOM: 0.5pt solid" align="center"><i><font style="FONT-SIZE: 10pt">(Dollars in thousands, except share and per share amounts, unless otherwise indicated)</font></i></p>

            <p></p>

            <p></p>

            <table cellspacing="0" cellpadding="0" width="516" align="center" border="0">
                <tr bgcolor="#ccffff">
                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="294" colspan="2">&nbsp;</td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="204" colspan="3">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000">Thirteen Weeks Ended</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr>
                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="294" colspan="2">&nbsp;</td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="96">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000">March 29,<br>
                        2008</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="90">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000">March 31,<br>
                        2007</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td style="BORDER-TOP: medium none" valign="bottom" width="294" colspan="2">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="96">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="90">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr>
                    <td valign="bottom" width="294" colspan="2">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000">Common stock</font></p>
                    </td>

                    <td valign="bottom" width="96">&nbsp;</td>

                    <td valign="bottom" width="18">&nbsp;</td>

                    <td valign="bottom" width="90">&nbsp;</td>

                    <td valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td valign="bottom" width="18">&nbsp;</td>

                    <td valign="bottom" width="276">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000">Beginning of period</font></p>
                    </td>

                    <td valign="bottom" width="96">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">$603</font></p>
                    </td>

                    <td valign="bottom" width="18">&nbsp;</td>

                    <td valign="bottom" width="90">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">$591</font></p>
                    </td>

                    <td valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr>
                    <td valign="bottom" width="18">&nbsp;</td>

                    <td valign="bottom" width="276">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000">Exercise of stock options</font></p>
                    </td>

                    <td valign="bottom" width="96">&nbsp;</td>

                    <td valign="bottom" width="18">&nbsp;</td>

                    <td valign="bottom" width="90">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">5</font></p>
                    </td>

                    <td valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td valign="bottom" width="18">&nbsp;</td>

                    <td valign="bottom" width="276">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000">Issuance of common stock in connection</font></p>
                    </td>

                    <td valign="bottom" width="96">&nbsp;</td>

                    <td valign="bottom" width="18">&nbsp;</td>

                    <td valign="bottom" width="90">&nbsp;</td>

                    <td valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr>
                    <td valign="bottom" width="18">&nbsp;</td>

                    <td valign="bottom" width="276">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000">with acquisition</font></p>
                    </td>

                    <td valign="bottom" width="96">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">35</font></p>
                    </td>

                    <td valign="bottom" width="18">&nbsp;</td>

                    <td valign="bottom" width="90">&nbsp;</td>

                    <td valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td style="BORDER-TOP: black 0.5pt solid; BORDER-BOTTOM: black 2pt double" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-TOP: black 0.5pt solid; BORDER-BOTTOM: black 2pt double" valign="bottom" width="276">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000">End of period</font></p>
                    </td>

                    <td style="BORDER-TOP: black 0.5pt solid; BORDER-BOTTOM: black 2pt double" valign="bottom" width="96">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">$638</font></p>
                    </td>

                    <td style="BORDER-TOP: black 0.5pt solid; BORDER-BOTTOM: black 2pt double" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-TOP: black 0.5pt solid; BORDER-BOTTOM: black 2pt double" valign="bottom" width="90">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">$596</font></p>
                    </td>

                    <td style="BORDER-TOP: black 0.5pt solid; BORDER-BOTTOM: black 2pt double" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr>
                    <td style="BORDER-TOP: medium none" valign="bottom" width="294" colspan="2">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="96">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="90">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td valign="bottom" width="294" colspan="2">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000">Additional paid-in-capital</font></p>
                    </td>

                    <td valign="bottom" width="96">&nbsp;</td>

                    <td valign="bottom" width="18">&nbsp;</td>

                    <td valign="bottom" width="90">&nbsp;</td>

                    <td valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr>
                    <td valign="bottom" width="18">&nbsp;</td>

                    <td valign="bottom" width="276">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000">Beginning of period</font></p>
                    </td>

                    <td valign="bottom" width="96">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">$102,951</font></p>
                    </td>

                    <td valign="bottom" width="18">&nbsp;</td>

                    <td valign="bottom" width="90">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">$101,559</font></p>
                    </td>

                    <td valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td valign="bottom" width="18">&nbsp;</td>

                    <td valign="bottom" width="276">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt">Exercise of stock options</font></p>
                    </td>

                    <td valign="bottom" width="96">&nbsp;</td>

                    <td valign="bottom" width="18">&nbsp;</td>

                    <td valign="bottom" width="90">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">371</font></p>
                    </td>

                    <td valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr>
                    <td valign="bottom" width="18">&nbsp;</td>

                    <td valign="bottom" width="276">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000">Issuance of common stock in connection</font></p>
                    </td>

                    <td valign="bottom" width="96">&nbsp;</td>

                    <td valign="bottom" width="18">&nbsp;</td>

                    <td valign="bottom" width="90">&nbsp;</td>

                    <td valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td valign="bottom" width="18">&nbsp;</td>

                    <td valign="bottom" width="276">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000">with acquisition</font></p>
                    </td>

                    <td valign="bottom" width="96">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">3,682</font></p>
                    </td>

                    <td valign="bottom" width="18">&nbsp;</td>

                    <td valign="bottom" width="90">&nbsp;</td>

                    <td valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr>
                    <td valign="bottom" width="18">&nbsp;</td>

                    <td valign="bottom" width="276">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt">Stock-based compensation expense</font></p>
                    </td>

                    <td valign="bottom" width="96">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">93</font></p>
                    </td>

                    <td valign="bottom" width="18">&nbsp;</td>

                    <td valign="bottom" width="90">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">186</font></p>
                    </td>

                    <td valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td style="BORDER-TOP: black 0.5pt solid; BORDER-BOTTOM: black 2pt double" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-TOP: black 0.5pt solid; BORDER-BOTTOM: black 2pt double" valign="bottom" width="276">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000">End of period</font></p>
                    </td>

                    <td style="BORDER-TOP: black 0.5pt solid; BORDER-BOTTOM: black 2pt double" valign="bottom" width="96">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">$106,726</font></p>
                    </td>

                    <td style="BORDER-TOP: black 0.5pt solid; BORDER-BOTTOM: black 2pt double" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-TOP: black 0.5pt solid; BORDER-BOTTOM: black 2pt double" valign="bottom" width="90">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">$102,116</font></p>
                    </td>

                    <td style="BORDER-TOP: black 0.5pt solid; BORDER-BOTTOM: black 2pt double" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr>
                    <td style="BORDER-TOP: medium none" valign="bottom" width="294" colspan="2">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="96">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="90">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td valign="bottom" width="294" colspan="2">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000">Accumulated other comprehensive income</font></p>
                    </td>

                    <td valign="bottom" width="96">&nbsp;</td>

                    <td valign="bottom" width="18">&nbsp;</td>

                    <td valign="bottom" width="90">&nbsp;</td>

                    <td valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr>
                    <td valign="bottom" width="18">&nbsp;</td>

                    <td valign="bottom" width="276">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000">Beginning of period</font></p>
                    </td>

                    <td valign="bottom" width="96">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">$1,484</font></p>
                    </td>

                    <td valign="bottom" width="18">&nbsp;</td>

                    <td valign="bottom" width="90">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">$1,001</font></p>
                    </td>

                    <td valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td valign="bottom" width="18">&nbsp;</td>

                    <td valign="bottom" width="276">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000">Translation adjustment</font></p>
                    </td>

                    <td valign="bottom" width="96">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">23</font></p>
                    </td>

                    <td valign="bottom" width="18">&nbsp;</td>

                    <td valign="bottom" width="90">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">(12</font></p>
                    </td>

                    <td valign="bottom" width="18">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000">)</font></p>
                    </td>
                </tr>

                <tr>
                    <td style="BORDER-TOP: black 0.5pt solid; BORDER-BOTTOM: black 2pt double" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-TOP: black 0.5pt solid; BORDER-BOTTOM: black 2pt double" valign="bottom" width="276">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000">End of period</font></p>
                    </td>

                    <td style="BORDER-TOP: black 0.5pt solid; BORDER-BOTTOM: black 2pt double" valign="bottom" width="96">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">$1,507</font></p>
                    </td>

                    <td style="BORDER-TOP: black 0.5pt solid; BORDER-BOTTOM: black 2pt double" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-TOP: black 0.5pt solid; BORDER-BOTTOM: black 2pt double" valign="bottom" width="90">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">$989</font></p>
                    </td>

                    <td style="BORDER-TOP: black 0.5pt solid; BORDER-BOTTOM: black 2pt double" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td style="BORDER-TOP: medium none" valign="bottom" width="294" colspan="2">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="96">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="90">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr>
                    <td valign="bottom" width="294" colspan="2">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000">Accumulated deficit</font></p>
                    </td>

                    <td valign="bottom" width="96">&nbsp;</td>

                    <td valign="bottom" width="18">&nbsp;</td>

                    <td valign="bottom" width="90">&nbsp;</td>

                    <td valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td valign="bottom" width="18">&nbsp;</td>

                    <td valign="bottom" width="276">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000">Beginning of period</font></p>
                    </td>

                    <td valign="bottom" width="96">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">($12,990</font></p>
                    </td>

                    <td valign="bottom" width="18">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000">)</font></p>
                    </td>

                    <td valign="bottom" width="90">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">($19,759</font></p>
                    </td>

                    <td valign="bottom" width="18">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000">)</font></p>
                    </td>
                </tr>

                <tr>
                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="276">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000">Net (loss) income</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="96">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">(2,669</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="18">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000">)</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="90">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">1,571</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td style="BORDER-TOP: medium none; BORDER-BOTTOM: black 2pt double" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-TOP: medium none; BORDER-BOTTOM: black 2pt double" valign="bottom" width="276">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000">End of period</font></p>
                    </td>

                    <td style="BORDER-TOP: medium none; BORDER-BOTTOM: black 2pt double" valign="bottom" width="96">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">($15,659</font></p>
                    </td>

                    <td style="BORDER-TOP: medium none; BORDER-BOTTOM: black 2pt double" valign="bottom" width="18">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000">)</font></p>
                    </td>

                    <td style="BORDER-TOP: medium none; BORDER-BOTTOM: black 2pt double" valign="bottom" width="90">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">($18,188</font></p>
                    </td>

                    <td style="BORDER-TOP: medium none; BORDER-BOTTOM: black 2pt double" valign="bottom" width="18">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000">)</font></p>
                    </td>
                </tr>

                <tr>
                    <td style="BORDER-TOP: medium none" valign="bottom" width="294" colspan="2">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="96">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="90">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td valign="bottom" width="294" colspan="2">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000">Comprehensive income</font></p>
                    </td>

                    <td valign="bottom" width="96">&nbsp;</td>

                    <td valign="bottom" width="18">&nbsp;</td>

                    <td valign="bottom" width="90">&nbsp;</td>

                    <td valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr>
                    <td valign="bottom" width="18">&nbsp;</td>

                    <td valign="bottom" width="276">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000">Net (loss) income</font></p>
                    </td>

                    <td valign="bottom" width="96">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">($2,669</font></p>
                    </td>

                    <td valign="bottom" width="18">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000">)</font></p>
                    </td>

                    <td valign="bottom" width="90">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">$1,571</font></p>
                    </td>

                    <td valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="276">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000">Translation adjustment</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="96">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">23</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="90">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">(12</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="18">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000">)</font></p>
                    </td>
                </tr>

                <tr>
                    <td style="BORDER-TOP: medium none; BORDER-BOTTOM: black 2pt double" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-TOP: medium none; BORDER-BOTTOM: black 2pt double" valign="bottom" width="276">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000">Total</font></p>
                    </td>

                    <td style="BORDER-TOP: medium none; BORDER-BOTTOM: black 2pt double" valign="bottom" width="96">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">($2,646</font></p>
                    </td>

                    <td style="BORDER-TOP: medium none; BORDER-BOTTOM: black 2pt double" valign="bottom" width="18">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000">)</font></p>
                    </td>

                    <td style="BORDER-TOP: medium none; BORDER-BOTTOM: black 2pt double" valign="bottom" width="90">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">$1,559</font></p>
                    </td>

                    <td style="BORDER-TOP: medium none; BORDER-BOTTOM: black 2pt double" valign="bottom" width="18">&nbsp;</td>
                </tr>
            </table>

            <p align="center"><br>
            <font size="2">The accompanying notes are an intergral part of these financial statements.</font></p>

            <p align="center"><font size="2">6</font></p>

            <p><br>
            </p>

            <p></p>
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            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b><font style="FONT-SIZE: 10pt">RCM TECHNOLOGIES, INC. AND SUBSIDIARIES<br>
            CONSOLIDATED STATEMENTS OF CASH FLOWS<br>
            Thirteen Weeks Ended March 29, 2008 and March 31, 2007<br>
            (Unaudited)</font></b></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; BORDER-BOTTOM: 0.5pt solid" align="center"><i><font style="FONT-SIZE: 10pt">(Dollars in thousands, except share and per share amounts, unless otherwise indicated)</font></i></p>

            <p></p>

            <p></p>

            <table cellspacing="0" cellpadding="0" width="600" border="0">
                <tr bgcolor="#ccffff">
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="16">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="15">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="375" colspan="3">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="72">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt">March 29,</font></p>

                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt">2008</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="70">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt">March 31,</font></p>

                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt">2007</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr>
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="408" colspan="5">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">Cash flows from operating activities:</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="72">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="70">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="16">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="391" colspan="4">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="72">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="70">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr>
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="16">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="391" colspan="4">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">Net (loss) income</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="72">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">($2,669</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="18">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">)</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="70">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">$1,571</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="16">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="391" colspan="4">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="72">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="70">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr>
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="16">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="391" colspan="4">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="72">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="70">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="16">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="391" colspan="4">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.1in" align="left"><font style="FONT-SIZE: 10pt">Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="72">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="70">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr>
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="16">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="15">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="15">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="360" colspan="2">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">Depreciation and amortization</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="72">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">361</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="70">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">354</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="16">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="15">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="15">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="360" colspan="2">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">Provision for allowance on accounts receivables</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="72">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">(97</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">)</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="70">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">13</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr>
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="16">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="15">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="15">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="360" colspan="2">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">Provision for allowance on note receivable</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="72">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">6,090</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="70">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="16">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="15">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="15">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="360" colspan="2">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">Stock-based compensation expense</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="72">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">93</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="70">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">186</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr>
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="16">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="15">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="15">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="360" colspan="2">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">Deferred tax assets</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="72">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">(2,188</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">)</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="70">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">835</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="16">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="15">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="15">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="360" colspan="2">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">Changes in assets and liabilities:</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="72">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="70">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr style="HEIGHT: 10.8pt">
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="16">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="15">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="15">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="342">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">Accounts and note receivable</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="72">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">(4,313</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">)</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="70">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">(1,117</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">)</font></p>
                    </td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="16">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="15">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="15">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="342">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">Prepaid expenses and other current assets</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="72">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">5</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="70">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">(303</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">)</font></p>
                    </td>
                </tr>

                <tr>
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="16">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="15">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="15">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="342">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">Accounts payable and accrued expenses</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="72">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">(1,452</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">)</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="70">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">332</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="16">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="15">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="15">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="342">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">Accrued compensation</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="72">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">(1,294</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">)</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="70">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">(1,886</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">)</font></p>
                    </td>
                </tr>

                <tr>
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="16">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="15">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="15">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="342">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">Payroll and withheld taxes</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="72">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">125</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="70">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">146</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="16">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="15">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="15">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="342">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">Income taxes payable</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="72">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">(1,120</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="18">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">)</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="70">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">120</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr>
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="16">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="15">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="15">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="342">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="72">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="70">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="16">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="391" colspan="4">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">Total adjustments</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="72">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">(3,790</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="18">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">)</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="70">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">(1,320</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">)</font></p>
                    </td>
                </tr>

                <tr>
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="16">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="15">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="375" colspan="3">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="72">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="70">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="16">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="15">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="375" colspan="3">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="72">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="70">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr>
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="16">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="15">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="375" colspan="3">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="72">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="70">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="408" colspan="5">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">Net cash (used in) provided by operating activities</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="72">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">($6,459</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="18">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">)</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="70">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">$251</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>
                </tr>
            </table>

            <p align="center"><br>
            <font size="2">The accompanying notes are an intergral part of these financial statements.</font></p>

            <p align="center"><font size="2">7</font></p>
            <!-- EEDocs PBStart-->

            <p style="PAGE-BREAK-BEFORE: always"></p>
            <!-- EEDocs PBEnd-->

            <p>&nbsp;</p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b><font style="FONT-SIZE: 10pt">RCM TECHNOLOGIES, INC. AND SUBSIDIARIES<br>
            CONSOLIDATED STATEMENTS OF CASH FLOWS - (Continued)<br>
            Thirteen Weeks Ended March 29, 2008 and March 31, 2007<br>
            (Unaudited)</font></b></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; BORDER-BOTTOM: 0.5pt solid" align="center"><i><font style="FONT-SIZE: 10pt">(Dollars in thousands, except share and per share amounts, unless otherwise indicated)</font></i></p>

            <p></p>

            <p></p>

            <table cellspacing="0" cellpadding="0" width="600" border="0">
                <tr bgcolor="#ccffff">
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="16">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="15">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="375">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="72">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt">March 29,<br>
                        2008</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="70">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt">March 31,<br>
                        2007</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr>
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="408" colspan="3">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">Cash flows from investing activities:</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="72">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="70">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="16">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="391" colspan="2">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">Property and equipment acquired</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="72">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">($1,084</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">)</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="70">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">($210</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">)</font></p>
                    </td>
                </tr>

                <tr>
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="16">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="391" colspan="2">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">Increase in deposits</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="72">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">(29</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">)</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="70">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">(18</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">)</font></p>
                    </td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 1px solid" valign="bottom" width="16">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 1px solid" valign="bottom" width="391" colspan="2">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">Cash paid for acquisitions, net of cash acquired</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 1px solid" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 1px solid" valign="bottom" width="72">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">(4,433</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 1px solid" valign="bottom" width="18">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">)</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 1px solid" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 1px solid" valign="bottom" width="70">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr>
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="16">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="391" colspan="2">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="72">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="70">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="16">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="391" colspan="2">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">Net cash used in investing activities</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="72">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">(5,546</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="18">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">)</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="70">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">(228</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">)</font></p>
                    </td>
                </tr>

                <tr>
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="16">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="391" colspan="2">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="72">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="70">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr style="HEIGHT: 12.2pt" bgcolor="#ccffff">
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="408" colspan="3">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">Cash flows from financing activities:</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="72">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="70">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr style="HEIGHT: 10.8pt">
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="16">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="391" colspan="2">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">Exercise of stock options</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="72">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="70">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">376</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="16">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="391" colspan="2">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">Net borrowing on line of credit</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="72">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">5,000</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="70">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr>
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="16">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="391" colspan="2">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="72">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="70">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="16">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="391" colspan="2">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">Net cash provided by financing activities</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="72">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">5,000</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="70">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">376</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr>
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="408" colspan="3">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="72">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="70">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="408" colspan="3">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">Effect of exchange rate changes on cash and cash equivalents</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="72">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">21</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="70">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">64</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr>
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="408" colspan="3">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="72">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="70">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="408" colspan="3">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">(Decrease) increase in cash and cash equivalents</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="72">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">(6,984</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">)</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="70">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">463</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr>
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="408" colspan="3">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="72">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="70">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="408" colspan="3">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">Cash and cash equivalents at beginning of period</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="72">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">11,642</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="70">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">2,449</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr>
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="408" colspan="3">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="72">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="70">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 2pt double" valign="bottom" width="408" colspan="3">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">Cash and cash equivalents at end of period</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 2pt double" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 2pt double" valign="bottom" width="72">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">$4,658</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 2pt double" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 2pt double" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 2pt double" valign="bottom" width="70">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">$2,912</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr>
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="408" colspan="3">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="72">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="70">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="408" colspan="3">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="72">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="70">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr>
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="408" colspan="3">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="72">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="70">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="408" colspan="3">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">Supplemental cash flow information:</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="72">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="70">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr>
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="16">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="391" colspan="2">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">Cash paid for:</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="72">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="70">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="16">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="15">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="375">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">Interest expense</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="72">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">$36</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="70">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">$48</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr>
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="16">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="15">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="375">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">Income taxes</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="72">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">$1,517</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="70">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">$217</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>
                </tr>
            </table>

            <p align="center"><br>
            <font size="2">The accompanying notes are an intergral part of these financial statements.</font></p>

            <p align="center"><font size="2">8</font></p>

            <p><br>
            </p>

            <p></p>
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            <p style="MARGIN-TOP: 0pt; FONT-WEIGHT: bold; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b>RCM TECHNOLOGIES, INC. AND SUBSIDIARIES</b></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; BORDER-BOTTOM: 0.5pt solid" align="center"><b><font style="FONT-SIZE: 10pt">NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS</font></b></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; BORDER-BOTTOM: 0.5pt solid" align="center"><i><font style="FONT-SIZE: 10pt">(Dollars in thousands, except share and per share amounts, unless otherwise indicated)</font></i></p>

            <p></p>

            <p></p>

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

                    <td valign="top">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 0px"><b><font style="FONT-FAMILY: 'TIMES NEW ROMAN'">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b></p>
                    </td>

                    <td valign="top">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><b><font style="FONT-SIZE: 10pt">Basis of Presentation</font></b></p>
                    </td>
                </tr>
            </table>
            <br>

            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.3in" align="justify"><font style="FONT-SIZE: 10pt">The accompanying consolidated interim financial statements of RCM Technologies, Inc and Subsidiaries (&ldquo;RCM&rdquo; or the &ldquo;Company&rdquo;) are unaudited. The balance sheet as of December 29, 2007 is derived from the audited balance sheet of the Company at that date. These statements have been prepared in accordance with the rules and
            regulations of the Securities and Exchange Commission pertaining to reports on Form 10-Q and should be read in conjunction with the Company&rsquo;s consolidated financial statements and the notes thereto for the year ended December 29, 2007 included in the Company&rsquo;s Annual Report Form 10-K for such period, filed on March 20, 2008. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting
            principles have been condensed or omitted pursuant to such rules and regulations.</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.3in" align="justify"><font style="FONT-SIZE: 10pt">The consolidated financial statements for the unaudited interim periods presented include all adjustments (consisting only of normal, recurring adjustments) necessary for a fair presentation of financial position, results of operations and cash flows for such interim periods.</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.3in" align="justify"><font style="FONT-SIZE: 10pt">The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses and disclosure of contingent assets and liabilities. Actual results could differ from
            those estimates. Results for the thirteen weeks ended March 29, 2008 are not necessarily indicative of results that may be expected for the full year.</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><b><font style="FONT-SIZE: 10pt">2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fiscal Year</font></b></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.2in" align="justify"><font style="FONT-SIZE: 10pt">The Company follows a 52/53 week fiscal reporting calendar ending on the Saturday closest to December 31. A 53-week year occurs periodically. The fiscal year ended December 29, 2007 was a 52-week reporting year. The first quarter of 2007, the 2007 fiscal year and the first quarter of 2008 ended on the following dates, respectively:<br>
            &nbsp;</font></p>

            <p></p>

            <table style="MARGIN-LEFT: 0.3in" cellspacing="0" cellpadding="0" width="600" border="0">
                <tr bgcolor="#ccffff">
                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="174">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">Period Ended</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="24">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="112">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">Weeks in Quarter</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="141">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">Weeks in Year to Date</font></p>
                    </td>
                </tr>

                <tr>
                    <td style="PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="174">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="24">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="112">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="141">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="174">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt">March 31, 2007</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="24">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="112">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt">Thirteen</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="141">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt">Thirteen</font></p>
                    </td>
                </tr>

                <tr>
                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="174">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt">December 29, 2007</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="24">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="112">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt">Thirteen</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="141">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt">Fifty-Two</font></p>
                    </td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="174">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt">March 29, 2008</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="24">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="112">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt">Thirteen</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="141">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt">Thirteen</font></p>
                    </td>
                </tr>
            </table>
            <br>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.3in; TEXT-INDENT: -18px" align="justify"><b><font style="FONT-SIZE: 10pt">3</font></b><font style="FONT-SIZE: 10pt">.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><b><font style="FONT-SIZE: 10pt">Use of Estimates and Uncertainties</font></b></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.3in" align="justify">The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses and disclosure of contingent assets and liabilities. Actual results could differ from those estimates.</p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.3in" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000">The Company uses estimates to calculate an allowance for doubtful accounts on its accounts receivables. These estimates can be significant to the operating results and financial position of the Company.<br>
            &nbsp;<br>
            The Company has risk participation arrangements with respect to workers compensation and health care insurance. The amounts included in the Company&rsquo;s costs related to this risk participation are estimated and can vary based on changes in assumptions, the Company&rsquo;s claims experience or the providers included in the associated insurance programs.<br>
            </font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.3in" align="center"><font size="2">9</font>&nbsp;</p>
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            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b><font style="FONT-SIZE: 10pt">RCM TECHNOLOGIES, INC. AND SUBSIDIARIES</font></b></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; BORDER-BOTTOM: 0.5pt solid" align="center"><b><font style="FONT-SIZE: 10pt">NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS</font></b></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; BORDER-BOTTOM: 0.5pt solid" align="center"><i><font style="FONT-SIZE: 10pt">(Dollars in thousands, except share and per share amounts, unless otherwise indicated)</font></i></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.3in; TEXT-INDENT: -18px" align="justify"><b><font style="FONT-SIZE: 10pt">3</font></b><font style="FONT-SIZE: 10pt">.&nbsp;&nbsp;&nbsp;</font><b><font style="FONT-SIZE: 10pt">Use of Estimates and Uncertainties</font></b> <b><font style="FONT-SIZE: 10pt">(Continued)</font></b></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.3in" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000">The Company can be affected by a variety of factors including uncertainty relating to the performance of the U.S. economy, competition, demand for the Company&rsquo;s services, adverse litigation and claims and the hiring, training and retention of key employees.</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><b><font style="FONT-SIZE: 10pt; COLOR: #000000">4</font></b><b><font style="FONT-SIZE: 10pt; COLOR: #000000">.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Note Receivable&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.3in" align="justify"><font style="FONT-SIZE: 10pt">On</font> <font style="FONT-SIZE: 10pt">February 26, 2008, the Company accepted a promissory note</font> <font style="FONT-SIZE: 10pt">from a customer for $7.5</font> <font style="FONT-SIZE: 10pt">million</font> <font style="FONT-SIZE: 10pt">per agreement, which includes interest, in payment of a like amount of accounts receivable from that customer. The note provides
            that $3.1</font> <font style="FONT-SIZE: 10pt">million is payable within 12 months and the remaining $4.4</font> <font style="FONT-SIZE: 10pt">million is payable in 36 monthly installments of $152,000, including principal and interest at 6% per annum through July 2011. The customer paid $1.2 million through March 29, 2008.</font> <font style="FONT-SIZE: 10pt">The note receivable is collateralized by a second position on all of the customer&rsquo;s accounts receivable as well as the
            personal guarantees of all its officers. On May 1, 2008, the customer defaulted on its May 1, 2008 installment payment and the</font> <font style="FONT-SIZE: 10pt">Company has determined that the note receivable would not likely be collectible. Therefore, the Company recorded</font> <font style="FONT-SIZE: 10pt">a $6.1 million provision for this doubtful account</font> <font style="FONT-SIZE: 10pt">for the thirteen weeks ended March 29, 2008.</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><b><font style="FONT-SIZE: 10pt; COLOR: #000000">5</font></b><b><font style="FONT-SIZE: 10pt; COLOR: #000000">.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Acquisition</font></b><b><font style="FONT-SIZE: 10pt; COLOR: #000000">s</font></b></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.3in" align="justify"><font style="FONT-SIZE: 10pt">On March 19, 2008 the Company purchased the operating assets of NuSoft Solutions, Inc. ("NuSoft"), a Michigan corporation. NuSoft is a specialty provider ofinformation technology services. The acquisition was effective as of March 1, 2008. The acquisition has been accounted for in accordance with Statement of Financial Accounting Standards (SFAS) No. 141 &ldquo;Business
            Combinations.&rdquo; Accordingly, the results of operations of the acquired company have been included in the consolidated results of operations of the Company from the effective date and are included in the IT segment.</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.3in" align="justify"><font style="FONT-SIZE: 10pt">The purchase consideration at closing consisted of $4.5 million in cash and 700,000 shares of RCM&rsquo;s common stock, par value $0.05, valued at $3.7 million and potential earn-out payments up to $4.4 million of deferred consideration contingent upon NuSoft achieving certain base levels of operating income for each of the three 12 month periods following the purchase.
            Additional earn-out payments may be made at the end of each of the three 12 month periods following the purchase, to the extent that operating income exceeds these base levels. The acquisition has been accounted for under the purchase method of accounting. The cost in excess of net assets acquired of $7.8 million is included in RCM's Consolidated Balance Sheet as &ldquo;Goodwill.&rdquo; The Company has not yet completed the process of identifying and valuing any intangible assets
            acquired in the transaction, and as a result, the allocation of the purchase price has not been finalized. The deferred consideration and earnouts, if paid, will be recorded as additional purchase consideration. Earnouts cannot be estimated with any certainty.</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.2in" align="justify"><font style="FONT-SIZE: 10pt">The following results of operations have been prepared assuming the NuSoft acquisition had occurred as of the beginning of the periods presented. Those results are not necessarily indicative of results of future operations nor of results that would have occurred had the acquisition of NuSoft occurred as of the beginning of the periods presented.</font></p>

            <table style="MARGIN-LEFT: 0.2in" cellspacing="0" cellpadding="0" width="600" border="0">
                <tr bgcolor="#ccffff">
                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="145">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="15">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="198" colspan="3">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt">Thirteen Weeks Ended</font></p>
                    </td>
                </tr>

                <tr>
                    <td style="PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="145">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="15">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="91">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt">March 29, 2008</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="15">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="91">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt">March 31, 2007</font></p>
                    </td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td style="BORDER-TOP: medium none" valign="bottom" width="145">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">Revenues</font></p>
                    </td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="15">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="91">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px"><font style="FONT-SIZE: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; $51,900</font></p>
                    </td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="15">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="91">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">$58,498</font></p>
                    </td>
                </tr>

                <tr>
                    <td valign="bottom" width="145">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">Operating(loss)income</font></p>
                    </td>

                    <td valign="bottom" width="15">&nbsp;</td>

                    <td valign="bottom" width="91">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">&nbsp;&nbsp; (4,591)</font></p>
                    </td>

                    <td valign="bottom" width="15">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>
                    </td>

                    <td valign="bottom" width="91">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">2,069</font></p>
                    </td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td valign="bottom" width="145">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">Net</font> <font style="FONT-SIZE: 10pt">(loss)</font> <font style="FONT-SIZE: 10pt">income</font></p>
                    </td>

                    <td valign="bottom" width="15">&nbsp;</td>

                    <td valign="bottom" width="91">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">($2,650)</font></p>
                    </td>

                    <td valign="bottom" width="15">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>
                    </td>

                    <td valign="bottom" width="91">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">$1,645</font></p>
                    </td>
                </tr>

                <tr>
                    <td valign="bottom" width="145">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">(Loss) earnings per share</font></p>
                    </td>

                    <td valign="bottom" width="15">&nbsp;</td>

                    <td valign="bottom" width="91">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">($0.22)</font></p>
                    </td>

                    <td valign="bottom" width="15">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>
                    </td>

                    <td valign="bottom" width="91">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">$0.13</font></p>
                    </td>
                </tr>
            </table>

            <p align="center"><font size="2">10</font></p>
            <hr align="center" width="100%" noshade size="2">
            <br>
            <br>
            <br>
            <br>


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            <p style="MARGIN-TOP: 0pt; FONT-WEIGHT: bold; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b>RCM TECHNOLOGIES, INC. AND SUBSIDIARIES</b></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; BORDER-BOTTOM: 0.5pt solid" align="center"><b><font style="FONT-SIZE: 10pt">NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS</font></b></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; BORDER-BOTTOM: 0.5pt solid" align="center"><i><font style="FONT-SIZE: 10pt">(Dollars in thousands, except share and per share amounts, unless otherwise indicated)</font></i></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><b><font style="FONT-SIZE: 10pt; COLOR: #000000">5</font></b><b><font style="FONT-SIZE: 10pt; COLOR: #000000">.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Acquisition</font></b><b><font style="FONT-SIZE: 10pt; COLOR: #000000">s (Continued)</font></b></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt; BACKGROUND: #ffff00; COLOR: #000000"><a name="OLE_LINK15"></a><a name="OLE_LINK16"></a><a name="OLE_LINK19"></a><a name="OLE_LINK20"></a></font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.3in" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000">In connection with certain</font> <font style="FONT-SIZE: 10pt; COLOR: #000000">acquisitions, the Company is obligated to pay contingent consideration to the selling shareholders upon the acquired business achieving certain earnings targets over periods ranging from two to three</font> <font style="FONT-SIZE: 10pt; COLOR: #000000">years following the
            acquisition.</font> <font style="FONT-SIZE: 10pt; COLOR: #000000">In general, the contingent consideration amounts fall into two categories: (a)Deferred Consideration</font> <font style="FONT-SIZE: 10pt; COLOR: #000000">-fixed amounts</font> <font style="FONT-SIZE: 10pt; COLOR: #000000">due if the acquisition achieves a base level ofearnings which has been</font> <font style="FONT-SIZE: 10pt; COLOR: #000000">determined at the time of acquisition and (b)Earnouts</font>
            <font style="FONT-SIZE: 10pt; COLOR: #000000">&ndash;</font> <font style="FONT-SIZE: 10pt; COLOR: #000000">amounts</font> <font style="FONT-SIZE: 10pt; COLOR: #000000">payable</font> <font style="FONT-SIZE: 10pt; COLOR: #000000">thatare not fixed and are based on the growth in excess of the base level earnings. The</font> <font style="FONT-SIZE: 10pt; COLOR: #000000">Company&rsquo;s outstanding</font> <font style="FONT-SIZE: 10pt; COLOR: #000000">Deferred Considerationobligations,
            which relate to various acquisitions,</font> <font style="FONT-SIZE: 10pt; COLOR: #000000">could</font> <font style="FONT-SIZE: 10pt; COLOR: #000000">to result in approximately the following actual payments:</font></p>

            <table style="MARGIN-LEFT: 0.2in" cellspacing="0" cellpadding="0" width="600" border="0">
                <tr bgcolor="#ccffff">
                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="206">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000">Year Ending</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="15">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="92">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000">Amount</font></p>
                    </td>
                </tr>

                <tr>
                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="206">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000">December 27, 2008</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="15">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="92">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">$100</font></p>
                    </td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="206">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000">January 2, 2010</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="15">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="92">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">1,900</font></p>
                    </td>
                </tr>

                <tr>
                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="206">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000">January 1, 2011</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="15">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="92">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">1,800</font></p>
                    </td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="206">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000">December 31, 2011</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="15">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="92">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">800</font></p>
                    </td>
                </tr>

                <tr>
                    <td style="PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 2pt double" valign="bottom" width="206">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 2pt double" valign="bottom" width="15">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 2pt double" valign="bottom" width="92">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">$4,600</font></p>
                    </td>
                </tr>
            </table>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.3in" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000">The Deferred Consideration and Earnouts, when paid, will be recorded as additional purchase consideration and added to goodwill on the consolidated balance sheet. Earnouts cannot be estimated with any certainty.</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><b><font style="FONT-SIZE: 10pt; COLOR: #000000">6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Property and Equipment</font></b></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.3in" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000">Property and equipment are stated at cost and are depreciated on the straight-line method at rates calculated to provide for retirement of assets at the end of their estimated useful lives. The annual rates are 20% for computer hardware and software as well as furniture and office equipment. Leasehold improvements are amortized over the shorter of the
            estimated life of the asset or the lease term. The Company writes off fully depreciated assets periodically. During the thirteen weeks</font> <font style="FONT-SIZE: 10pt; COLOR: #000000">endedMarch 29, 2008, the write offs were $1.4 million.</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><b><font style="FONT-SIZE: 10pt; COLOR: #000000">7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;New Accounting Standards</font></b></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.3in" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000">In September 2006, the FASB issued SFAS No. 157, "Fair Value Measurements" ("SFAS No. 157"). SFAS No. 157 clarifies the principle that fair value should be based on the assumptions market participants would use when pricing an asset or liability and establishes a fair value hierarchy that prioritizes the information used to develop those
            assumptions. Under the standard, fair value measurements would be separately disclosed by level within the fair value hierarchy. In February 2008, the FASBissued FASB Staff Position</font> <font style="FONT-SIZE: 10pt; COLOR: #000000">No. 157-2, "Effective Date of FASB Statement No. 157," to partially defer FASB Statement No. 157 for nonfinancial assets and nonfinancial liabilities, except those that are recognized or disclosed at fair value in the financial statements on a
            recurring basis. SFAS No.157 is effective for the Company onDecember 30, 2008, except for nonfinancial assets and nonfinancial liabilities that are not recognized or disclosed at fair value on a recurring basis for which our effective date isDecember 28, 2008. The adoption of this statement did not have a material effect on our consolidated financial position or results of operations.</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.3in" align="justify"><font style="FONT-SIZE: 10pt">In February 2007, the FASB issued SFAS No. 159, "The Fair Value Option for Financial Assets and Financial Liabilities-Including an amendment of FASB Statement No. 115" ("SFASNo.159"). SFASNo.159 expands the use of fair value accounting but does not affect existing standards, which require assets and liabilities to be carried at fair</font>
            <font style="FONT-SIZE: 10pt">value.</font> <font style="FONT-SIZE: 10pt">Under SFAS</font> <font style="FONT-SIZE: 10pt">No.</font> <font style="FONT-SIZE: 10pt">159, a company may elect to use fair value to measure accounts and loans receivable, available-for-sale and held-to-maturity securities, equity method investments, accounts payable, guarantees, issued debt and other eligible financial instruments. SFAS</font> <font style="FONT-SIZE: 10pt">No.</font>
            <font style="FONT-SIZE: 10pt">159 is effective for the Companyas of December 30, 2008.</font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.3in" align="center"><font style="FONT-SIZE: 10pt">11</font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.3in" align="justify"></p>
            <hr align="center" width="100%" noshade size="2">
            <br>
            <br>

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            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.3in" align="center"><b><font style="FONT-SIZE: 10pt">RCM TECHNOLOGIES, INC. AND SUBSIDIARIES</font></b></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; BORDER-BOTTOM: 0.5pt solid" align="center"><b><font style="FONT-SIZE: 10pt">NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS</font></b></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; BORDER-BOTTOM: 0.5pt solid" align="center"><i><font style="FONT-SIZE: 10pt">(Dollars in thousands, except share and per share amounts, unless otherwise indicated)</font></i></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><b><font style="FONT-SIZE: 10pt; COLOR: #000000">7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;New Accounting Standards (Continued)</font></b></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.3in" align="justify"><font style="FONT-SIZE: 10pt">The Company has elected notto apply the fair value option to measure any of the financial assets and liabilities on its balance sheet not</font> <font style="FONT-SIZE: 10pt">already valued at fair value under other accounting pronouncements. These other financial assets and liabilities are primarily accounts receivable, accounts</font>
            <font style="FONT-SIZE: 10pt">payable and debt which are reported at historical value. The fair value of these financial assets and liabilities approximate their fair value because of their short duration and in the case of the debtbecause itcarries variable interest rates which are reset frequently.</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.3in" align="justify"><font style="FONT-SIZE: 10pt">In December&nbsp;2007, the FASB issued SFAS No.&nbsp;141 (revised 2007),</font> <font style="FONT-SIZE: 10pt">&ldquo;Business Combinations&rdquo;</font> <font style="FONT-SIZE: 10pt">(&ldquo;SFAS No. 141R&rdquo;).</font> <font style="FONT-SIZE: 10pt">This statement replaces SFAS No.&nbsp;141, &ldquo;Business Combinations,&rdquo;</font>
            <font style="FONT-SIZE: 10pt">and</font> <font style="FONT-SIZE: 10pt">requires an acquirer to recognize the assets acquired, the liabilities assumed and any noncontrolling interest in the acquiree at the acquisition date, measured at their fair values as of that date, with limited exceptions. SFAS No. 141R requires costs incurred to effect the acquisition to be recognized separately from the acquisition as period costs. SFAS No.&nbsp;141R also requires the acquirer to recognize
            restructuring costs that the acquirer expects to incur, but is not obligated to incur, separately from the business combination. In addition, this statement requires an acquirer to recognize assets and liabilities assumed arising from contractual contingencies as of the acquisition date, measured at their acquisition-date fair values. Other key provisions of this statement include the requirement to recognize the acquisition-date fair values of research and development assets
            separately from goodwill and the requirement to recognize changes in the amount of deferred tax benefits that are recognizable due to the business combination in either income from continuing operations in the period of the combination or directly in contributed capital, depending on the circumstances. With the exception of certain tax-related aspects described above, this statement applies prospectively to business combinations for which the acquisition date is on or after
            December&nbsp;28, 2008.</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><b><font style="FONT-SIZE: 10pt">8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Line of Credit</font></b></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.3in" align="justify"><font style="FONT-SIZE: 10pt">The Company and its subsidiaries are party to a loan agreement with Citizens Bank of Pennsylvania, administrative agent for a syndicate of banks, which provides for a $25 million revolving credit facility and includes a sub-limit of $5.0 million for letters of credit (the &ldquo;Revolving Credit Facility&rdquo;). Borrowings under the Revolving Credit
            Facility bear interest at one of two alternative rates, as selected by the Company at each incremental borrowing. These alternatives are: (i) LIBOR (London Interbank Offered Rate), plus applicable margin, or (ii) the agent bank's prime rate.</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.3in" align="justify"><font style="FONT-SIZE: 10pt">All borrowings under the Revolving Credit Facility are collateralized by all of the assets of the Company and its subsidiaries and a pledge of the stock of its subsidiaries. The Revolving Credit Facility also contains various financial and non-financial covenants, such as restrictions on the Company&rsquo;s ability to pay dividends.</font></p>

            <p></p>

            <p dir="ltr" style="FONT-SIZE: 12pt; MARGIN: 0pt 0px 0pt 0.3in" align="justify"><font style="FONT-SIZE: 10pt">The Revolving Credit Facility expires in August 2011. The weighted average interest rates, which include unused line fees,</font> <font style="FONT-SIZE: 10pt">under the Revolving Credit Facility for thethirteen weeks</font> <font style="FONT-SIZE: 10pt">endedMarch 29, 2008</font> <font style="FONT-SIZE: 10pt">andMarch 31, 2007</font> <font style="FONT-SIZE: 10pt">were4.6%
            and13.3%, respectively.</font> <font style="FONT-SIZE: 10pt">The weighted average interest rate for the 2007 period was disproportionately high in relation to the interest expense incurred because of the inclusion of unused line fees of $7,600. Duringthethirteen weeks</font> <font style="FONT-SIZE: 10pt">endedMarch 29, 2008</font> <font style="FONT-SIZE: 10pt">andMarch 31, 2007, the Company&rsquo;s outstanding borrowings ranged from $-0- to $5.0 million and $-0- million</font>
            <font style="FONT-SIZE: 10pt">to $1.5 million, respectively. At March 29, 2008 and December 29, 2007, there were $5.0 million and -0- outstanding borrowings under this facility, respectively. AtMarch 29, 2008, there were</font> <font style="FONT-SIZE: 10pt">letters</font> <font style="FONT-SIZE: 10pt">of credit outstanding for $1.6 million.</font> <font style="FONT-SIZE: 10pt">At March 29, 2008, the Company had availability for additional borrowings under the Revolving Credit
            Facility of $18.4</font> <font style="FONT-SIZE: 10pt">million.</font></p>
            <hr align="center" width="100%" noshade size="2">
            <br>
            <br>

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            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; BORDER-BOTTOM: 0.5pt solid" align="center"><b><font style="FONT-SIZE: 10pt">RCM TECHNOLOGIES, INC. AND SUBSIDIARIES</font></b></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; BORDER-BOTTOM: 0.5pt solid" align="center"><b><font style="FONT-SIZE: 10pt">NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS</font></b></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; BORDER-BOTTOM: 0.5pt solid" align="center"><i><font style="FONT-SIZE: 10pt">(Dollars in thousands, except share and per share amounts, unless otherwise indicated)</font></i></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.3in; TEXT-INDENT: -18px" align="left"><b><font style="FONT-SIZE: 10pt">9.&nbsp;&nbsp;&nbsp;Interest Income (Expense), Net</font></b></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.3in" align="left"><font style="FONT-SIZE: 10pt">Interest income (expense), net consisted of the following:<br>
            &nbsp;</font></p>

            <table style="MARGIN-LEFT: 0.8in" cellspacing="0" cellpadding="0" width="319" border="0">
                <tr bgcolor="#ccffff">
                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="119">&nbsp;</td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="184" colspan="3">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt">Thirteen Weeks Ended</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="15">&nbsp;</td>
                </tr>

                <tr>
                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="119">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><a name="_Hlk71971583"></a></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="87">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt">March 29, 2008</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="14">&nbsp;</td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="82">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt">March 31, 2007</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="15">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td style="BORDER-TOP: medium none" valign="bottom" width="119">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">Interest expense</font></p>
                    </td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="87">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'ARIAL UNICODE MS'" align="right"><font style="FONT-FAMILY: 'TIMES NEW ROMAN'">($14</font></p>
                    </td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="14">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">)</font></p>
                    </td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="82">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'ARIAL UNICODE MS'" align="right"><font style="FONT-FAMILY: 'TIMES NEW ROMAN'">($</font> <font style="FONT-FAMILY: 'TIMES NEW ROMAN'">25</font></p>
                    </td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="15">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">)</font></p>
                    </td>
                </tr>

                <tr>
                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="119">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">Interest income</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="87">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">40</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="14">&nbsp;</td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="82">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">17</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="15">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td style="BORDER-TOP: medium none; BORDER-BOTTOM: black 2pt double" valign="bottom" width="119">&nbsp;</td>

                    <td style="BORDER-TOP: medium none; BORDER-BOTTOM: black 2pt double" valign="bottom" width="87">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">$26</font></p>
                    </td>

                    <td style="BORDER-TOP: medium none; BORDER-BOTTOM: black 2pt double" valign="bottom" width="14">&nbsp;</td>

                    <td style="BORDER-TOP: medium none; BORDER-BOTTOM: black 2pt double" valign="bottom" width="82">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">($8</font></p>
                    </td>

                    <td style="BORDER-TOP: medium none; BORDER-BOTTOM: black 2pt double" valign="bottom" width="15">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">)</font></p>
                    </td>
                </tr>
            </table>
            <br>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><b><font style="FONT-SIZE: 10pt; COLOR: #000000">10.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Goodwill and Intangibles</font></b></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.3in" align="justify"><font style="FONT-SIZE: 10pt">SFAS No. 142,</font><font style="FONT-SIZE: 10pt; COLOR: #000000">&ldquo;</font><font style="FONT-SIZE: 10pt">Goodwill and Other Intangible Assets</font><font style="FONT-SIZE: 10pt; COLOR: #000000">&rdquo; (&ldquo;</font><font style="FONT-SIZE: 10pt">SFAS 142&rdquo;), requires the Company to perform a goodwill impairment test on at least an annual
            basis.</font><font style="FONT-SIZE: 10pt; COLOR: #000000">Application of the goodwill impairment test requires significant judgments including estimation of future cash flows, which is dependent on internal forecasts, estimation of the long-term rate of growth for the businesses, the useful life over which cash flows will occur and determination of the Company&rsquo;s weighted average cost of capital. Changes in these estimates and assumptions could materially affect the
            determination of fair value and/or conclusions on goodwill impairment for each reporting unit. The Company conducts its annual goodwill impairment test as of November 30.</font> <font style="FONT-SIZE: 10pt">The Company compares the fair value of each of its reporting units to their respective carrying values, including related goodwill. There were</font> <font style="FONT-SIZE: 10pt">no triggering events</font> <font style="FONT-SIZE: 10pt">during the thirteen weeks ended</font>
            <font style="FONT-SIZE: 10pt">March 29, 2008</font> <font style="FONT-SIZE: 10pt">that</font> <font style="FONT-SIZE: 10pt">have indicated a need to perform the impairment test prior to the Company's annual test date.</font>&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 6pt; MARGIN-LEFT: 0.3in" align="left"><font style="FONT-SIZE: 10pt">The changes in the carrying amount of goodwill for thethirteen weeks</font> <font style="FONT-SIZE: 10pt">ended March 29, 2008</font> <font style="FONT-SIZE: 10pt">are as follows:</font></p>

            <table style="MARGIN-LEFT: 0.3in" cellspacing="0" cellpadding="0" width="612" border="0">
                <tr bgcolor="#ccffff">
                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="198">&nbsp;</td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="82">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt">Information<br>
                        Technology</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="15">&nbsp;</td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="75">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt">Engineering</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="77">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt">Commercial</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="72">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt">Total</font></p>
                    </td>

                    <td valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr>
                    <td style="BORDER-TOP: medium none" valign="bottom" width="216" colspan="2">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">Balance as of December 29, 2007</font></p>
                    </td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="82">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">$31,350</font></p>
                    </td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="15">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="75">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">$8,238</font></p>
                    </td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="77">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="72">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">$39,588</font></p>
                    </td>

                    <td valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td valign="bottom" width="18">&nbsp;</td>

                    <td valign="bottom" width="198">&nbsp;</td>

                    <td valign="bottom" width="18">&nbsp;</td>

                    <td valign="bottom" width="82">&nbsp;</td>

                    <td valign="bottom" width="15">&nbsp;</td>

                    <td valign="bottom" width="75">&nbsp;</td>

                    <td valign="bottom" width="18">&nbsp;</td>

                    <td valign="bottom" width="77">&nbsp;</td>

                    <td valign="bottom" width="18">&nbsp;</td>

                    <td valign="bottom" width="72">&nbsp;</td>

                    <td valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr>
                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="198">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">Goodwill acquired during the thirteen weeks ended March 29, 2008</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="82">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">&nbsp;</p>

                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">7,808</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="15">&nbsp;</td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="75">&nbsp;</td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="77">&nbsp;</td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="72">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">&nbsp;</p>

                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">7,808</font></p>
                    </td>

                    <td valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td style="BORDER-TOP: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="198">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="82">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="15">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="75">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="77">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="72">&nbsp;</td>

                    <td valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr>
                    <td style="BORDER-BOTTOM: black 2pt double" valign="bottom" width="216" colspan="2">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">Balance as of March 29, 2008</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 2pt double" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-BOTTOM: black 2pt double" valign="bottom" width="82">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">$39,158</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 2pt double" valign="bottom" width="15">&nbsp;</td>

                    <td style="BORDER-BOTTOM: black 2pt double" valign="bottom" width="75">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">$8,238</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 2pt double" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-BOTTOM: black 2pt double" valign="bottom" width="77">&nbsp;</td>

                    <td style="BORDER-BOTTOM: black 2pt double" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-BOTTOM: black 2pt double" valign="bottom" width="72">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">$47,396</font></p>
                    </td>

                    <td valign="bottom" width="18">&nbsp;</td>
                </tr>
            </table>
            <br>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.3in" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000">The following table reflects the components of intangible assets, excluding goodwill:</font></p>

            <table style="MARGIN-LEFT: 0.3in" cellspacing="0" cellpadding="0" width="600" border="0">
                <tr bgcolor="#ccffff">
                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="204">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="192" colspan="3">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000">March 29, 2008</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="18">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="180" colspan="3">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000">December 29, 2007</font></p>
                    </td>
                </tr>

                <tr style="HEIGHT: 21.1pt">
                    <td style="PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="204">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="84">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000">Gross Carrying Amount</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="18">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="90">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000">Accumulated Amortization</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="18">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="72">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000">Gross Carrying Amount</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="18">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="90">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000">Accumulated Amortization</font></p>
                    </td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td style="PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="204">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000">Definite-lived</font> <font style="FONT-SIZE: 10pt; COLOR: #000000">intangible assets</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="84">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="18">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="90">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="18">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="72">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="18">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="90">&nbsp;</td>
                </tr>

                <tr>
                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="204">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000">Non-compete agreements</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="84">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">$145</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="18">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="90">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">$71</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="18">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="72">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">$145</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="18">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="90">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">$64</font></p>
                    </td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="204">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000">Customer relationships</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="84">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">930</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="18">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="90">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">735</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="18">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="72">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">930</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="18">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="90">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">662</font></p>
                    </td>
                </tr>

                <tr style="HEIGHT: 14.4pt">
                    <td style="PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="204">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="84">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="18">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="90">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="18">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="72">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="18">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; BORDER-TOP: medium none; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="90">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 2pt double" valign="bottom" width="204">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000">Total</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 2pt double" valign="bottom" width="84">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">$1,075</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 2pt double" valign="bottom" width="18">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 2pt double" valign="bottom" width="90">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">$806</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 2pt double" valign="bottom" width="18">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 2pt double" valign="bottom" width="72">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">$1,075</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 2pt double" valign="bottom" width="18">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 2pt double" valign="bottom" width="90">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">$726</font></p>
                    </td>
                </tr>
            </table>

            <p align="center"><font size="2">13</font></p>
            <hr align="center" width="100%" noshade size="2">
            <br>
            <br>
            <br>
            <br>


            <p style="PAGE-BREAK-AFTER: always"></p>
            <!-- EEDocs PBEnd-->

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; BORDER-BOTTOM: 0.5pt solid" align="center"><b><font style="FONT-SIZE: 10pt">RCM TECHNOLOGIES, INC. AND SUBSIDIARIES</font></b></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; BORDER-BOTTOM: 0.5pt solid" align="center"><b><font style="FONT-SIZE: 10pt">NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS</font></b></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; BORDER-BOTTOM: 0.5pt solid" align="center"><i><font style="FONT-SIZE: 10pt">(Dollars in thousands, except share and per share amounts, unless otherwise indicated)</font></i></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><b><font style="FONT-SIZE: 10pt; COLOR: #000000">11.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stockholders' Equity</font></b></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 18px" align="justify"><b><i><font style="FONT-SIZE: 10pt; COLOR: #000000">Common Stock Reserved</font></i></b></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 18px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000">Unissued shares</font> <font style="FONT-SIZE: 10pt; COLOR: #000000">of common stock were reserved for the following purposes:</font></p>

            <p></p>

            <p></p>

            <table style="MARGIN-LEFT: 0.3in" cellspacing="0" cellpadding="0" width="600" border="0">
                <tr bgcolor="#ccffff">
                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.03in; BORDER-TOP: medium none; PADDING-LEFT: 0.03in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="253">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.03in; BORDER-TOP: medium none; PADDING-LEFT: 0.03in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.03in; BORDER-TOP: medium none; PADDING-LEFT: 0.03in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="90">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt">March 29,<br>
                        2008</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.03in; BORDER-TOP: medium none; PADDING-LEFT: 0.03in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="12">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.03in; BORDER-TOP: medium none; PADDING-LEFT: 0.03in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="90">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt">December 29,<br>
                        2007</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.03in; BORDER-TOP: medium none; PADDING-LEFT: 0.03in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="15">&nbsp;</td>
                </tr>

                <tr>
                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.03in; BORDER-TOP: medium none; PADDING-LEFT: 0.03in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="253">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.03in; BORDER-TOP: medium none; PADDING-LEFT: 0.03in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.03in; BORDER-TOP: medium none; PADDING-LEFT: 0.03in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="90">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.03in; BORDER-TOP: medium none; PADDING-LEFT: 0.03in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="12">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.03in; BORDER-TOP: medium none; PADDING-LEFT: 0.03in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="90">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.03in; BORDER-TOP: medium none; PADDING-LEFT: 0.03in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="15">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.03in; BORDER-TOP: medium none; PADDING-LEFT: 0.03in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="253">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000">Exercise of options outstanding</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.03in; BORDER-TOP: medium none; PADDING-LEFT: 0.03in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.03in; BORDER-TOP: medium none; PADDING-LEFT: 0.03in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="90">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">1,399,450</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.03in; BORDER-TOP: medium none; PADDING-LEFT: 0.03in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="12">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.03in; BORDER-TOP: medium none; PADDING-LEFT: 0.03in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="90">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">1,462,000</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.03in; BORDER-TOP: medium none; PADDING-LEFT: 0.03in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="15">&nbsp;</td>
                </tr>

                <tr>
                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.03in; BORDER-TOP: medium none; PADDING-LEFT: 0.03in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="253">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000">Future grants of options</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.03in; BORDER-TOP: medium none; PADDING-LEFT: 0.03in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.03in; BORDER-TOP: medium none; PADDING-LEFT: 0.03in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="90">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">691,744</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.03in; BORDER-TOP: medium none; PADDING-LEFT: 0.03in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="12">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.03in; BORDER-TOP: medium none; PADDING-LEFT: 0.03in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="90">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">728,694</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.03in; BORDER-TOP: medium none; PADDING-LEFT: 0.03in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="15">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.03in; BORDER-TOP: medium none; PADDING-LEFT: 0.03in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="253">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.03in; BORDER-TOP: medium none; PADDING-LEFT: 0.03in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.03in; BORDER-TOP: medium none; PADDING-LEFT: 0.03in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="90">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.03in; BORDER-TOP: medium none; PADDING-LEFT: 0.03in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="12">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.03in; BORDER-TOP: medium none; PADDING-LEFT: 0.03in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="90">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.03in; BORDER-TOP: medium none; PADDING-LEFT: 0.03in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="15">&nbsp;</td>
                </tr>

                <tr>
                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.03in; BORDER-TOP: medium none; PADDING-LEFT: 0.03in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 2pt double" valign="bottom" width="253">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000">Total</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.03in; BORDER-TOP: medium none; PADDING-LEFT: 0.03in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 2pt double" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.03in; BORDER-TOP: medium none; PADDING-LEFT: 0.03in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 2pt double" valign="bottom" width="90">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">2,091,194</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.03in; BORDER-TOP: medium none; PADDING-LEFT: 0.03in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 2pt double" valign="bottom" width="12">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.03in; BORDER-TOP: medium none; PADDING-LEFT: 0.03in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: black 2pt double" valign="bottom" width="90">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">2,190,694</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; PADDING-RIGHT: 0.03in; BORDER-TOP: medium none; PADDING-LEFT: 0.03in; PADDING-BOTTOM: 0in; BORDER-LEFT: medium none; PADDING-TOP: 0in; BORDER-BOTTOM: medium none" valign="bottom" width="15">&nbsp;</td>
                </tr>
            </table>
            <br>
            <br>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.3in; TEXT-INDENT: -18px" align="justify"><b><font style="FONT-SIZE: 10pt; COLOR: #000000">12.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Earnings Per Share</font></b></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.3in; TEXT-INDENT: -18px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Both basic and diluted (loss) earnings per share for all periods are calculated based on the reported earnings in the Company&rsquo;s consolidated statements of income.</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.3in; TEXT-INDENT: -18px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The number of common shares used to calculate basic and diluted (loss) earnings per share for the thirteen weeks ended March 29, 2008 and March 31, 2007 was determined as follows:</font></p>

            <p></p>

            <p></p>

            <table style="MARGIN-LEFT: 0.3in" cellspacing="0" cellpadding="0" width="444" border="0">
                <tr bgcolor="#ccffff">
                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="222">&nbsp;</td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="204" colspan="3">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000">Thirteen Weeks Ended</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr>
                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="222">&nbsp;</td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="96">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000">March 29,<br>
                        2008</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="90">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000">March 31,<br>
                        2007</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td style="BORDER-TOP: medium none" valign="bottom" width="222">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="96">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="90">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr>
                    <td valign="bottom" width="222">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt">Basic</font></p>
                    </td>

                    <td valign="bottom" width="96">&nbsp;</td>

                    <td valign="bottom" width="18">&nbsp;</td>

                    <td valign="bottom" width="90">&nbsp;</td>

                    <td valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td style="BORDER-BOTTOM: black 2pt double" valign="bottom" width="222">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000">Weighted average shares outstanding</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 2pt double" valign="bottom" width="96">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">12,281,766</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 2pt double" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-BOTTOM: black 2pt double" valign="bottom" width="90">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">11,881,412</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 2pt double" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr>
                    <td style="BORDER-TOP: medium none" valign="bottom" width="222">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="96">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="90">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td valign="bottom" width="222">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000">Diluted</font></p>
                    </td>

                    <td valign="bottom" width="96">&nbsp;</td>

                    <td valign="bottom" width="18">&nbsp;</td>

                    <td valign="bottom" width="90">&nbsp;</td>

                    <td valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr>
                    <td valign="bottom" width="222">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000">Shares used for basic calculation</font></p>
                    </td>

                    <td valign="bottom" width="96">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">12,281,766</font></p>
                    </td>

                    <td valign="bottom" width="18">&nbsp;</td>

                    <td valign="bottom" width="90">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">11,881,412</font></p>
                    </td>

                    <td valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td valign="bottom" width="222">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.1in; TEXT-INDENT: -8px" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000">Dilutive effect of options granted under the Company&rsquo;s Stock Option Plans</font></p>
                    </td>

                    <td valign="bottom" width="96">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">205,182</font></p>
                    </td>

                    <td valign="bottom" width="18">&nbsp;</td>

                    <td valign="bottom" width="90">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">470,452</font></p>
                    </td>

                    <td valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr>
                    <td style="BORDER-TOP: black 0.5pt solid; BORDER-BOTTOM: black 2pt double" valign="bottom" width="222">&nbsp;</td>

                    <td style="BORDER-TOP: black 0.5pt solid; BORDER-BOTTOM: black 2pt double" valign="bottom" width="96">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">12,486,948</font></p>
                    </td>

                    <td style="BORDER-TOP: black 0.5pt solid; BORDER-BOTTOM: black 2pt double" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-TOP: black 0.5pt solid; BORDER-BOTTOM: black 2pt double" valign="bottom" width="90">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">12,351,864</font></p>
                    </td>

                    <td style="BORDER-TOP: black 0.5pt solid; BORDER-BOTTOM: black 2pt double" valign="bottom" width="18">&nbsp;</td>
                </tr>
            </table>
            <br>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.3in" align="left"><font style="FONT-SIZE: 10pt">In the reporting periods where there is net loss, the basic weighted average shares are used to determine loss per share because diluted shares would be antidilutive.</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.3in; TEXT-INDENT: -18px" align="justify"><b><font style="FONT-SIZE: 10pt; COLOR: #000000">1</font></b><b><font style="FONT-SIZE: 10pt; COLOR: #000000">3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Share</font></b> <b><font style="FONT-SIZE: 10pt; COLOR: #000000">- Based Compensation</font></b></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.3in" align="justify"><font style="FONT-SIZE: 10pt"><a name="OLE_LINK26"></a><a name="OLE_LINK27">At</a> <font style="FONT-SIZE: 10pt">March</font> <font style="FONT-SIZE: 10pt">29, 2008, the Company had five share-based employee compensation plans. The Company measures the fair value of stock options, if and when granted, based upon the closing market price of the Company&rsquo;s common stock on the date
            of grant. All grants typically vest over a three-year period and expire within 10 years of issuance. Stock options that vest in accordance with service conditions amortize over their applicable vesting period using the straight-line method.<br>
            </font></font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.3in" align="center"><font size="2">14</font>&nbsp;</p>
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            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b><font style="FONT-SIZE: 10pt">RCM TECHNOLOGIES, INC. AND SUBSIDIARIES</font></b></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b><font style="FONT-SIZE: 10pt">NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS</font></b></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; BORDER-BOTTOM: 0.5pt solid" align="center"><i><font style="FONT-SIZE: 10pt">(Dollars in thousands, except share and per share amounts, unless otherwise indicated)</font></i></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.3in; TEXT-INDENT: -18px" align="justify"><b><font style="FONT-SIZE: 10pt; COLOR: #000000">1</font></b><b><font style="FONT-SIZE: 10pt; COLOR: #000000">3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Share</font></b> <b><font style="FONT-SIZE: 10pt; COLOR: #000000">- Based Compensation</font></b> <b><font style="FONT-SIZE: 10pt; COLOR: #000000">(Continued)</font></b></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.3in" align="justify"><font style="FONT-SIZE: 10pt">The Companyrecognizes</font> <font style="FONT-SIZE: 10pt">compensation costs in the financial statements for all share-based</font> <font style="FONT-SIZE: 10pt">payments granted subsequent to January 1, 2006 based on the grant date fair</font> <font style="FONT-SIZE: 10pt">value estimated in accordance with the provisions of Statement of
            Financial</font> <font style="FONT-SIZE: 10pt">Accounting Standards No. 123(R), "Share-Based Payment, revised 2004" ("SFAS</font> <font style="FONT-SIZE: 10pt">123R").</font> <font style="FONT-SIZE: 10pt">Compensation cost recognized in 2008</font> <font style="FONT-SIZE: 10pt">and 2007 included: (a)</font> <font style="FONT-SIZE: 10pt">compensation cost for all share-based payments granted prior to, but not yet vested as of January 1, 2006, based on the grant date fair value
            estimated in accordance with the original provisions of SFAS 123, adjusted for estimated forfeitures, and (b)&nbsp;compensation cost for all stock-based payments granted subsequent to January&nbsp;1, 2006, based on the grant date fair value estimated in accordance with the provisions of SFAS 123(R), adjusted for estimated forfeitures. The straight-line recognition method is used to recognize compensation expense associated with share-based payments that are subject to graded vesting
            based on service conditions.</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.3in" align="justify"><font style="FONT-SIZE: 10pt">Share-based compensation expense of$93, or $0.01</font> <font style="FONT-SIZE: 10pt">per diluted share, and of $186, was recognized for thethirteen weeks</font> <font style="FONT-SIZE: 10pt">endedMarch</font> <font style="FONT-SIZE: 10pt">29, 2008</font> <font style="FONT-SIZE: 10pt">andMarch31, 2007, respectively.</font><br>
            &nbsp;<br>
            <font style="FONT-SIZE: 10pt">The Company anticipates that share-based compensation will not exceed $260, for the year ending December 27, 2008 on existing options as of March 29, 2008.</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.3in" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000">The weighted average fair value of options granted using the Black-Scholes Option Pricing Model duringthe thirteen weeks ended March 29, 2008 and March 31, 2007</font> <font style="FONT-SIZE: 10pt; COLOR: #000000">has been estimated using the following assumptions:</font></p>

            <table cellspacing="0" cellpadding="0" width="600" align="center" border="0">
                <tr bgcolor="#ccffff">
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="19">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="160">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="12">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="180" colspan="3">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000">Thirteen Weeks Ended</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="12">&nbsp;</td>
                </tr>

                <tr>
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="19">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="160">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="12">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="84">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000">March</font> <font style="FONT-SIZE: 10pt; COLOR: #000000">29,<br>
                        2008</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="12">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="84">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000">March 31,</font></p>

                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000">2007</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="12">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="180" colspan="2">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000">Weighted average risk-free<br>
                        interest rate</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="12">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="84">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">3.07%</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="12">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="84">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">4.54%</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="12">&nbsp;</td>
                </tr>

                <tr>
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="180" colspan="2">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000">Expected term of option</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="12">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="84">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">5 Years</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="12">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="84">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">5 years</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="12">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="180" colspan="2">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000">Expected stock price volatility</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="12">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="84">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">57%</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="12">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="84">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">56%</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="12">&nbsp;</td>
                </tr>

                <tr>
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="180" colspan="2">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000">Expected dividend yield</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="12">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="84">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000">-</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="12">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="84">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000">-</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="12">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="180" colspan="2">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000">Annual forfeiture rate</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="12">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="84">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">29.0%</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="12">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="84">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">3.</font> <font style="FONT-SIZE: 10pt; COLOR: #000000">80%</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="12">&nbsp;</td>
                </tr>

                <tr>
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="180" colspan="2">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000">Weighted-average per share<br>
                        value granted</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="12">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="84">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">$4.48</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="12">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="84">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">$4.40</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="12">&nbsp;</td>
                </tr>
            </table>
            <br>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 18px" align="justify"><b><i><font style="FONT-SIZE: 10pt; COLOR: #000000">Incentive Stock Option Plans</font></i></b></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.3in" align="left"><i><font style="FONT-SIZE: 10pt">1992 Incentive Stock Option Plan (the 1992 Plan)</font></i></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.3in" align="justify">The 1992 Plan, approved by the Company&rsquo;s stockholders in April 1992 and amended in April 1998, provided for the issuance of up to 500,000 shares of common stock per individual to officers, directors, and key employees of the Company and its subsidiaries through February 13, 2002, at which time the 1992 Plan expired. The options issued were intended to be incentive stock options
            pursuant to Section 422A of the Internal Revenue Code. The option terms were not permitted to exceed 10 years and the exercise price was not permitted to be less than 100% of the fair market value of the shares at the time of grant. The Compensation Committee of the Board of Directors determined the vesting period at the time of grant for each of these options. As of March 29, 2008, options to purchase 68,455 shares of common stock were outstanding.</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.3in" align="center">15</p>
            <hr align="center" width="100%" noshade size="2">
            <br>
            <br>

            <p style="PAGE-BREAK-AFTER: always"></p>
            <!-- EEDocs PBEnd-->

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b><font style="FONT-SIZE: 10pt; COLOR: #000000">RCM TECHNOLOGIES, INC. AND SUBSIDIARIES</font></b></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; BORDER-BOTTOM: 0.5pt solid" align="center"><b><font style="FONT-SIZE: 10pt">NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS</font></b></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; BORDER-BOTTOM: 0.5pt solid" align="center"><i><font style="FONT-SIZE: 10pt">(Dollars in thousands, except share and per share amounts, unless otherwise indicated</font></i>)</p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><b><font style="FONT-SIZE: 10pt; COLOR: #000000">13. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Share</font></b> <b><font style="FONT-SIZE: 10pt; COLOR: #000000">- Based Compensation</font></b> <b><font style="FONT-SIZE: 10pt; COLOR: #000000">(Continued)</font></b></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.3in" align="left"><i><font style="FONT-SIZE: 10pt">1994 Non-employee Directors Stock Option Plan (the 1994 Plan)</font></i></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.3in" align="justify">The 1994 Plan, approved by the Company&rsquo;s stockholders in May 1994 and amended in April 1998, provided for issuance of up to 110,000 shares of common stock to non-employee directors of the Company through February 19, 2004, at which time the 1994 Plan expired. Options granted under the 1994 Plan were granted at fair market value at the date of grant, and the exercise of options
            is contingent upon service as a director for a period of one year. Options granted under the 1994 Plan terminate when an optionee ceases to be a director of the Company. As of March 29, 2008, options to purchase 50,000 shares of common stock were outstanding.</p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.3in" align="left"><i><font style="FONT-SIZE: 10pt">1996 Executive Stock Option Plan (the 1996 Plan)</font></i></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.3in" align="justify">The 1996 Plan, approved by the Company&rsquo;s stockholders in August 1996 and amended in April 1999, provides for issuance of up to 1,250,000 shares of common stock to officers and key employees of the Company and its subsidiaries through January 1, 2006, at which time the 1996 Plan expired. Options are generally granted at fair market value at the date of grant. The Compensation
            Committee of the Board of Directors determines the vesting period at the time of grant. As of March 29, 2008, options to purchase 769,545 shares of common stock were outstanding.<br>
            &nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.3in" align="left"><i><font style="FONT-SIZE: 10pt">2000 Employee Stock Incentive Plan (the 2000 Plan)</font></i></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.3in" align="justify"><font style="FONT-SIZE: 10pt">The 2000 Plan, approved by the Company&rsquo;s stockholders in April 2001, provides for issuance of up to 1,500,000 shares of the Company&rsquo;s common stock to officers and key employees of the Company and its subsidiaries or to consultants and advisors utilized by the Company. The Compensation Committee of the Board of Directors may award incentive stock options or
            non-qualified stock options, as well as stock appreciation rights, and determines the vesting period at the time of grant. As ofMarch 29, 2008,options to purchase 23,694 shares of common stock were available for future grants, and options to purchase479,500</font> <font style="FONT-SIZE: 10pt">shares of common stock were outstanding.</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.3in" align="left"><i><font style="FONT-SIZE: 10pt">2007 Omnibus Equity Compensation Plan (the 2007 Plan)</font></i></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.3in" align="justify"><font style="FONT-SIZE: 10pt">The 2007 Plan, approved by the Company&rsquo;s stockholders in June 2007, provides for the issuance of up to 700,000 shares of the Company&rsquo;s common stock to officers, non-employee directors, employees of the Company and its subsidiaries or to consultants and advisors utilized by the Company. No more than 350,000 shares of common stock in the aggregate may be issued
            pursuant to grants of stock awards, stock units, performance shares and other stock-based awards. No more than 300,000 shares of common stock with respect to awards may be granted to any individual during any fiscal year. The Compensation Committee of the Board of Directors determines the vesting period at the time of grant. As ofMarch 29, 2008, options to purchase668,050</font> <font style="FONT-SIZE: 10pt">shares of common stock were available for future grants, andoptions to
            purchase 31,950</font> <font style="FONT-SIZE: 10pt">shares of common stock</font> <font style="FONT-SIZE: 10pt">were</font> <font style="FONT-SIZE: 10pt">outstanding.</font><br>
            &nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.3in" align="justify"><font style="FONT-SIZE: 10pt">As of March 29, 2008, the Company had approximately</font> <font style="FONT-SIZE: 10pt">$233</font> <font style="FONT-SIZE: 10pt">of total unrecognized compensation cost related to non-vested awards granted under the Company&rsquo;s various share-based plans, which the Companyexpects</font> <font style="FONT-SIZE: 10pt">to recognize over a2.3 year
            period.</font> <font style="FONT-SIZE: 10pt; COLOR: #000000">These amounts do not include the cost of any additional options that may be granted in future periods or reflect any potential changes in the Company&rsquo;s forfeiture rate.</font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.3in" align="center"><font size="2">16</font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.3in" align="justify"></p>
            <hr align="center" width="100%" noshade size="2">
            <br>
            <br>

            <p style="PAGE-BREAK-AFTER: always"></p>
            <!-- EEDocs PBEnd-->

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b><font style="FONT-SIZE: 10pt">RCM TECHNOLOGIES, INC. AND SUBSIDIARIES</font></b></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b><font style="FONT-SIZE: 10pt">NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS</font></b></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; BORDER-BOTTOM: 0.5pt solid" align="center"><i><font style="FONT-SIZE: 10pt">(Dollars in thousands, except share and per share amounts, unless otherwise indicated)</font></i></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><b><font style="FONT-SIZE: 10pt; COLOR: #000000">13. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Share</font></b> <b><font style="FONT-SIZE: 10pt; COLOR: #000000">- Based Compensation</font></b> <b><font style="FONT-SIZE: 10pt; COLOR: #000000">(Continued)</font></b></p>

            <p></p>

            <blockquote dir="ltr" style="MARGIN-RIGHT: 0px">
                <p align="justify"><font size="2"><strong><em>Incentive Stock Option Plans (Continued)</em></strong></font></p>

                <p align="justify"><font size="2">The Company received cash from options exercised during the firstthirteen weeks of fiscal years 2008 and&nbsp;&nbsp; 2007 of$-0- and $376, respectively.&nbsp; The impact of these cash receipts is included in financing activities in the accompanying consolidated statements of cash flows.</font>&nbsp;&nbsp;&nbsp;</p>
            </blockquote>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 18px" align="justify"><b><i><font style="FONT-SIZE: 10pt; COLOR: #000000">&nbsp;&nbsp;&nbsp;&nbsp;</font></i></b> <b><i><font size="2">Employee Stock Purchase Plan</font></i></b></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.2in" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000">The Company implemented an Employee Stock Purchase Plan (the &ldquo;Purchase Plan&rdquo;) with shareholder approval, effective January 1, 2001. Under the Purchase Plan, employees meeting certain specific employment qualifications are eligible to participate and can purchase shares of Common Stock semi-annually through payroll deductions at the lower of 85%
            of the fair market value of the stock at the commencement or end of the offering period. The purchase plan permits eligible employees to purchase common stock through payroll deductions for up to 10% of qualified compensation. During thethirteen weeks</font> <font style="FONT-SIZE: 10pt; COLOR: #000000">endedMarch</font> <font style="FONT-SIZE: 10pt; COLOR: #000000">29, 2008, there wereno</font> <font style="FONT-SIZE: 10pt; COLOR: #000000">shares issued under the Purchase Plan. As
            of March</font> <font style="FONT-SIZE: 10pt; COLOR: #000000">29, 2008, there were 196,625 shares available for issuance under the Purchase Plan.</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.3in" align="justify">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.3in" align="justify">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.3in" align="center"><font size="2">17</font></p>
            <!-- PAGE BREAK  --><!-- EEDocs PBStart-->
            <hr align="center" width="100%" noshade size="2">

            <p style="PAGE-BREAK-AFTER: always"></p>
            <!-- EEDocs PBEnd-->

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b><font style="FONT-SIZE: 10pt">RCM TECHNOLOGIES, INC. AND SUBSIDIARIES</font></b></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; BORDER-BOTTOM: 0.5pt solid" align="center"><b><font style="FONT-SIZE: 10pt">NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS</font></b></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; BORDER-BOTTOM: 0.5pt solid" align="center"><i><font style="FONT-SIZE: 10pt">(Dollars in thousands, except share and per share amounts, unless otherwise indicated)</font></i></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><b><font style="FONT-SIZE: 10pt">14.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Segment Information</font></b></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.3in" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000">The Company follows</font> <font style="FONT-SIZE: 10pt; COLOR: #000000">SFASNo.131, &ldquo;Disclosures about Segments of an Enterprise and Related Information&rdquo; (SFAS 131), which establishes standards for companies to report information about operating segments, geographic areas</font> <font style="FONT-SIZE: 10pt; COLOR: #000000">and major
            customers.</font> <font style="FONT-SIZE: 10pt; COLOR: #000000">The accounting policies of each segment are the same as those described in the summary of significant accounting policies (see Note 1</font> <font style="FONT-SIZE: 10pt; COLOR: #000000">to the consolidated financial statements).</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.3in" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000">The Company uses earnings before interest and taxes (operating income) to measure segment profit. Segment operating income includes selling, general and administrative expenses directly attributable to that segment as well as charges for allocating corporate costs to each of the operating segments. The following tables reflect the results of the segments
            consistent with the Company&rsquo;s management system:</font></p>

            <p></p>

            <p></p>

            <table style="MARGIN-LEFT: 0.1in" cellspacing="0" cellpadding="0" width="644" border="0">
                <tr bgcolor="#ccffff">
                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="161">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><b><font style="FONT-SIZE: 10pt">Thirteen Weeks Ended<br>
                        March 29, 2008</font></b></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="10">&nbsp;</td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="87">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt">Information<br>
                        Technology</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="10">&nbsp;</td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="82">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt">Engineering</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="17">&nbsp;</td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="82">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt">Commercial</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="9">&nbsp;</td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="72">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt">Corporate</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="10">&nbsp;</td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="83">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt">Total</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="14">&nbsp;</td>
                </tr>

                <tr>
                    <td style="BORDER-TOP: medium none" valign="bottom" width="161">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="10">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="87">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="10">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="82">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="17">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="82">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="9">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="72">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="10">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="83">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="14">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td valign="bottom" width="161">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">Revenue</font></p>
                    </td>

                    <td valign="bottom" width="10">&nbsp;</td>

                    <td valign="bottom" width="87">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">$22,439</font></p>
                    </td>

                    <td valign="bottom" width="10">&nbsp;</td>

                    <td valign="bottom" width="82">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">$14,045</font></p>
                    </td>

                    <td valign="bottom" width="17">&nbsp;</td>

                    <td valign="bottom" width="82">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">$12,630</font></p>
                    </td>

                    <td valign="bottom" width="9">&nbsp;</td>

                    <td valign="bottom" width="72">&nbsp;</td>

                    <td valign="bottom" width="10">&nbsp;</td>

                    <td valign="bottom" width="83">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">$49,114</font></p>
                    </td>

                    <td valign="bottom" width="14">&nbsp;</td>
                </tr>

                <tr>
                    <td valign="bottom" width="161">&nbsp;</td>

                    <td valign="bottom" width="10">&nbsp;</td>

                    <td valign="bottom" width="87">&nbsp;</td>

                    <td valign="bottom" width="10">&nbsp;</td>

                    <td valign="bottom" width="82">&nbsp;</td>

                    <td valign="bottom" width="17">&nbsp;</td>

                    <td valign="bottom" width="82">&nbsp;</td>

                    <td valign="bottom" width="9">&nbsp;</td>

                    <td valign="bottom" width="72">&nbsp;</td>

                    <td valign="bottom" width="10">&nbsp;</td>

                    <td valign="bottom" width="83">&nbsp;</td>

                    <td valign="bottom" width="14">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="161">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">Operating expenses</font> <sup><font style="FONT-SIZE: 10pt">(1)</font></sup> <sup><font style="FONT-SIZE: 10pt">(2)</font></sup></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="10">&nbsp;</td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="87">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">21,979</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="10">&nbsp;</td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="82">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">13,476</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="17">&nbsp;</td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="82">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">11,846</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="9">&nbsp;</td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="72">&nbsp;</td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="10">&nbsp;</td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="83">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">47,301</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="14">&nbsp;</td>
                </tr>

                <tr>
                    <td style="BORDER-TOP: medium none" valign="bottom" width="161">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="10">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="87">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="10">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="82">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="17">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="82">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="9">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="72">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="10">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="83">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="14">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td valign="bottom" width="161">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">EBITDA</font><sup><font style="FONT-SIZE: 10pt">(</font></sup><sup><font style="FONT-SIZE: 10pt">3</font></sup> <sup><font style="FONT-SIZE: 10pt">)</font></sup></p>
                    </td>

                    <td valign="bottom" width="10">&nbsp;</td>

                    <td valign="bottom" width="87">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">460</font></p>
                    </td>

                    <td valign="bottom" width="10">&nbsp;</td>

                    <td valign="bottom" width="82">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">569</font></p>
                    </td>

                    <td valign="bottom" width="17">&nbsp;</td>

                    <td valign="bottom" width="82">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">784</font></p>
                    </td>

                    <td valign="bottom" width="9">&nbsp;</td>

                    <td valign="bottom" width="72">&nbsp;</td>

                    <td valign="bottom" width="10">&nbsp;</td>

                    <td valign="bottom" width="83">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">1,813</font></p>
                    </td>

                    <td valign="bottom" width="14">&nbsp;</td>
                </tr>

                <tr>
                    <td valign="bottom" width="161">&nbsp;</td>

                    <td valign="bottom" width="10">&nbsp;</td>

                    <td valign="bottom" width="87">&nbsp;</td>

                    <td valign="bottom" width="10">&nbsp;</td>

                    <td valign="bottom" width="82">&nbsp;</td>

                    <td valign="bottom" width="17">&nbsp;</td>

                    <td valign="bottom" width="82">&nbsp;</td>

                    <td valign="bottom" width="9">&nbsp;</td>

                    <td valign="bottom" width="72">&nbsp;</td>

                    <td valign="bottom" width="10">&nbsp;</td>

                    <td valign="bottom" width="83">&nbsp;</td>

                    <td valign="bottom" width="14">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td valign="bottom" width="161">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">Bad debt - note receivable</font></p>
                    </td>

                    <td valign="bottom" width="10">&nbsp;</td>

                    <td valign="bottom" width="87">&nbsp;</td>

                    <td valign="bottom" width="10">&nbsp;</td>

                    <td valign="bottom" width="82">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">6,090</font></p>
                    </td>

                    <td valign="bottom" width="17">&nbsp;</td>

                    <td valign="bottom" width="82">&nbsp;</td>

                    <td valign="bottom" width="9">&nbsp;</td>

                    <td valign="bottom" width="72">&nbsp;</td>

                    <td valign="bottom" width="10">&nbsp;</td>

                    <td valign="bottom" width="83">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">6,090</font></p>
                    </td>

                    <td valign="bottom" width="14">&nbsp;</td>
                </tr>

                <tr>
                    <td valign="bottom" width="161">&nbsp;</td>

                    <td valign="bottom" width="10">&nbsp;</td>

                    <td valign="bottom" width="87">&nbsp;</td>

                    <td valign="bottom" width="10">&nbsp;</td>

                    <td valign="bottom" width="82">&nbsp;</td>

                    <td valign="bottom" width="17">&nbsp;</td>

                    <td valign="bottom" width="82">&nbsp;</td>

                    <td valign="bottom" width="9">&nbsp;</td>

                    <td valign="bottom" width="72">&nbsp;</td>

                    <td valign="bottom" width="10">&nbsp;</td>

                    <td valign="bottom" width="83">&nbsp;</td>

                    <td valign="bottom" width="14">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td valign="bottom" width="161">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">Depreciation</font></p>
                    </td>

                    <td valign="bottom" width="10">&nbsp;</td>

                    <td valign="bottom" width="87">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">127</font></p>
                    </td>

                    <td valign="bottom" width="10">&nbsp;</td>

                    <td valign="bottom" width="82">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">106</font></p>
                    </td>

                    <td valign="bottom" width="17">&nbsp;</td>

                    <td valign="bottom" width="82">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">48</font></p>
                    </td>

                    <td valign="bottom" width="9">&nbsp;</td>

                    <td valign="bottom" width="72">&nbsp;</td>

                    <td valign="bottom" width="10">&nbsp;</td>

                    <td valign="bottom" width="83">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">281</font></p>
                    </td>

                    <td valign="bottom" width="14">&nbsp;</td>
                </tr>

                <tr>
                    <td valign="bottom" width="161">&nbsp;</td>

                    <td valign="bottom" width="10">&nbsp;</td>

                    <td valign="bottom" width="87">&nbsp;</td>

                    <td valign="bottom" width="10">&nbsp;</td>

                    <td valign="bottom" width="82">&nbsp;</td>

                    <td valign="bottom" width="17">&nbsp;</td>

                    <td valign="bottom" width="82">&nbsp;</td>

                    <td valign="bottom" width="9">&nbsp;</td>

                    <td valign="bottom" width="72">&nbsp;</td>

                    <td valign="bottom" width="10">&nbsp;</td>

                    <td valign="bottom" width="83">&nbsp;</td>

                    <td valign="bottom" width="14">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td valign="bottom" width="161">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">Amortization of intangibles</font></p>
                    </td>

                    <td valign="bottom" width="10">&nbsp;</td>

                    <td valign="bottom" width="87">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">71</font></p>
                    </td>

                    <td valign="bottom" width="10">&nbsp;</td>

                    <td valign="bottom" width="82">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">9</font></p>
                    </td>

                    <td valign="bottom" width="17">&nbsp;</td>

                    <td valign="bottom" width="82">&nbsp;</td>

                    <td valign="bottom" width="9">&nbsp;</td>

                    <td valign="bottom" width="72">&nbsp;</td>

                    <td valign="bottom" width="10">&nbsp;</td>

                    <td valign="bottom" width="83">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">80</font></p>
                    </td>

                    <td valign="bottom" width="14">&nbsp;</td>
                </tr>

                <tr>
                    <td style="BORDER-TOP: black 0.5pt solid" valign="bottom" width="161">&nbsp;</td>

                    <td style="BORDER-TOP: black 0.5pt solid" valign="bottom" width="10">&nbsp;</td>

                    <td style="BORDER-TOP: black 0.5pt solid" valign="bottom" width="87">&nbsp;</td>

                    <td style="BORDER-TOP: black 0.5pt solid" valign="bottom" width="10">&nbsp;</td>

                    <td style="BORDER-TOP: black 0.5pt solid" valign="bottom" width="82">&nbsp;</td>

                    <td style="BORDER-TOP: black 0.5pt solid" valign="bottom" width="17">&nbsp;</td>

                    <td style="BORDER-TOP: black 0.5pt solid" valign="bottom" width="82">&nbsp;</td>

                    <td style="BORDER-TOP: black 0.5pt solid" valign="bottom" width="9">&nbsp;</td>

                    <td style="BORDER-TOP: black 0.5pt solid" valign="bottom" width="72">&nbsp;</td>

                    <td style="BORDER-TOP: black 0.5pt solid" valign="bottom" width="10">&nbsp;</td>

                    <td style="BORDER-TOP: black 0.5pt solid" valign="bottom" width="83">&nbsp;</td>

                    <td style="BORDER-TOP: black 0.5pt solid" valign="bottom" width="14">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td valign="bottom" width="161">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">Operating income (loss)</font></p>
                    </td>

                    <td valign="bottom" width="10">&nbsp;</td>

                    <td valign="bottom" width="87">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">262</font></p>
                    </td>

                    <td valign="bottom" width="10">&nbsp;</td>

                    <td valign="bottom" width="82">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">(5,636</font></p>
                    </td>

                    <td valign="bottom" width="17">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">)</font></p>
                    </td>

                    <td valign="bottom" width="82">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">736</font></p>
                    </td>

                    <td valign="bottom" width="9">&nbsp;</td>

                    <td valign="bottom" width="72">&nbsp;</td>

                    <td valign="bottom" width="10">&nbsp;</td>

                    <td valign="bottom" width="83">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">(4,638</font></p>
                    </td>

                    <td valign="bottom" width="14">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">)</font></p>
                    </td>
                </tr>

                <tr>
                    <td valign="bottom" width="161">&nbsp;</td>

                    <td valign="bottom" width="10">&nbsp;</td>

                    <td valign="bottom" width="87">&nbsp;</td>

                    <td valign="bottom" width="10">&nbsp;</td>

                    <td valign="bottom" width="82">&nbsp;</td>

                    <td valign="bottom" width="17">&nbsp;</td>

                    <td valign="bottom" width="82">&nbsp;</td>

                    <td valign="bottom" width="9">&nbsp;</td>

                    <td valign="bottom" width="72">&nbsp;</td>

                    <td valign="bottom" width="10">&nbsp;</td>

                    <td valign="bottom" width="83">&nbsp;</td>

                    <td valign="bottom" width="14">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td valign="bottom" width="161">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">Interest income, net of interest expense</font></p>
                    </td>

                    <td valign="bottom" width="10">&nbsp;</td>

                    <td valign="bottom" width="87">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">(5</font></p>
                    </td>

                    <td valign="bottom" width="10">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">)</font></p>
                    </td>

                    <td valign="bottom" width="82">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">(8</font></p>
                    </td>

                    <td valign="bottom" width="17">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">)</font></p>
                    </td>

                    <td valign="bottom" width="82">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">(13</font></p>
                    </td>

                    <td valign="bottom" width="9">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">)</font></p>
                    </td>

                    <td valign="bottom" width="72">&nbsp;</td>

                    <td valign="bottom" width="10">&nbsp;</td>

                    <td valign="bottom" width="83">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">(26</font></p>
                    </td>

                    <td valign="bottom" width="14">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>

                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">)</font></p>
                    </td>
                </tr>

                <tr>
                    <td valign="bottom" width="161">&nbsp;</td>

                    <td valign="bottom" width="10">&nbsp;</td>

                    <td valign="bottom" width="87">&nbsp;</td>

                    <td valign="bottom" width="10">&nbsp;</td>

                    <td valign="bottom" width="82">&nbsp;</td>

                    <td valign="bottom" width="17">&nbsp;</td>

                    <td valign="bottom" width="82">&nbsp;</td>

                    <td valign="bottom" width="9">&nbsp;</td>

                    <td valign="bottom" width="72">&nbsp;</td>

                    <td valign="bottom" width="10">&nbsp;</td>

                    <td valign="bottom" width="83">&nbsp;</td>

                    <td valign="bottom" width="14">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td valign="bottom" width="161">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">Gain on foreign currency transactions</font></p>
                    </td>

                    <td valign="bottom" width="10">&nbsp;</td>

                    <td valign="bottom" width="87">&nbsp;</td>

                    <td valign="bottom" width="10">&nbsp;</td>

                    <td valign="bottom" width="82">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">&nbsp;</p>

                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">(1</font></p>
                    </td>

                    <td valign="bottom" width="17">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>

                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">)</font></p>
                    </td>

                    <td valign="bottom" width="82">&nbsp;</td>

                    <td valign="bottom" width="9">&nbsp;</td>

                    <td valign="bottom" width="72">&nbsp;</td>

                    <td valign="bottom" width="10">&nbsp;</td>

                    <td valign="bottom" width="83">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">&nbsp;</p>

                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">(1</font></p>
                    </td>

                    <td valign="bottom" width="14">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>

                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">)</font></p>
                    </td>
                </tr>

                <tr>
                    <td valign="bottom" width="161">&nbsp;</td>

                    <td valign="bottom" width="10">&nbsp;</td>

                    <td valign="bottom" width="87">&nbsp;</td>

                    <td valign="bottom" width="10">&nbsp;</td>

                    <td valign="bottom" width="82">&nbsp;</td>

                    <td valign="bottom" width="17">&nbsp;</td>

                    <td valign="bottom" width="82">&nbsp;</td>

                    <td valign="bottom" width="9">&nbsp;</td>

                    <td valign="bottom" width="72">&nbsp;</td>

                    <td valign="bottom" width="10">&nbsp;</td>

                    <td valign="bottom" width="83">&nbsp;</td>

                    <td valign="bottom" width="14">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="161">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">Income taxes (benefit)</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="10">&nbsp;</td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="87">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">89</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="10">&nbsp;</td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="82">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">(2,281</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="17">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">)</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="82">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">250</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="9">&nbsp;</td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="72">&nbsp;</td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="10">&nbsp;</td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="83">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">(1,942</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="14">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>

                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">)</font></p>
                    </td>
                </tr>

                <tr>
                    <td style="BORDER-TOP: medium none" valign="bottom" width="161">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="10">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="87">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="10">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="82">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="17">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="82">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="9">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="72">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="10">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="83">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="14">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td style="BORDER-BOTTOM: black 2pt double" valign="bottom" width="161">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">Net income (loss)</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 2pt double" valign="bottom" width="10">&nbsp;</td>

                    <td style="BORDER-BOTTOM: black 2pt double" valign="bottom" width="87">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">$178</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 2pt double" valign="bottom" width="10">&nbsp;</td>

                    <td style="BORDER-BOTTOM: black 2pt double" valign="bottom" width="82">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">$308</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 2pt double" valign="bottom" width="17">&nbsp;</td>

                    <td style="BORDER-BOTTOM: black 2pt double" valign="bottom" width="82">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">$499</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 2pt double" valign="bottom" width="9">&nbsp;</td>

                    <td style="BORDER-BOTTOM: black 2pt double" valign="bottom" width="72">&nbsp;</td>

                    <td style="BORDER-BOTTOM: black 2pt double" valign="bottom" width="10">&nbsp;</td>

                    <td style="BORDER-BOTTOM: black 2pt double" valign="bottom" width="83">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">($2,669</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 2pt double" valign="bottom" width="14">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>

                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">)</font></p>
                    </td>
                </tr>

                <tr>
                    <td style="BORDER-TOP: medium none" valign="bottom" width="161">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="10">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="87">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="10">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="82">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="17">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="82">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="9">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="72">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="10">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="83">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="14">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td valign="bottom" width="161">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><a name="_Hlk86034746"><font style="FONT-SIZE: 10pt">Total assets</font></a></p>
                    </td>

                    <td valign="bottom" width="10">&nbsp;</td>

                    <td valign="bottom" width="87">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">$61,468</font></p>
                    </td>

                    <td valign="bottom" width="10">&nbsp;</td>

                    <td valign="bottom" width="82">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">$21,740</font></p>
                    </td>

                    <td valign="bottom" width="17">&nbsp;</td>

                    <td valign="bottom" width="82">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">$16,117</font></p>
                    </td>

                    <td valign="bottom" width="9">&nbsp;</td>

                    <td valign="bottom" width="72">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">$12,443</font></p>
                    </td>

                    <td valign="bottom" width="10">&nbsp;</td>

                    <td valign="bottom" width="83">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">$111,768</font></p>
                    </td>

                    <td valign="bottom" width="14">&nbsp;</td>
                </tr>

                <tr>
                    <td valign="bottom" width="161">&nbsp;</td>

                    <td valign="bottom" width="10">&nbsp;</td>

                    <td valign="bottom" width="87">&nbsp;</td>

                    <td valign="bottom" width="10">&nbsp;</td>

                    <td valign="bottom" width="82">&nbsp;</td>

                    <td valign="bottom" width="17">&nbsp;</td>

                    <td valign="bottom" width="82">&nbsp;</td>

                    <td valign="bottom" width="9">&nbsp;</td>

                    <td valign="bottom" width="72">&nbsp;</td>

                    <td valign="bottom" width="10">&nbsp;</td>

                    <td valign="bottom" width="83">&nbsp;</td>

                    <td valign="bottom" width="14">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td valign="bottom" width="161">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">Capital expenditures</font></p>
                    </td>

                    <td valign="bottom" width="10">&nbsp;</td>

                    <td valign="bottom" width="87">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">$463</font></p>
                    </td>

                    <td valign="bottom" width="10">&nbsp;</td>

                    <td valign="bottom" width="82">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">$223</font></p>
                    </td>

                    <td valign="bottom" width="17">&nbsp;</td>

                    <td valign="bottom" width="82">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">$1</font></p>
                    </td>

                    <td valign="bottom" width="9">&nbsp;</td>

                    <td valign="bottom" width="72">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">$840</font></p>
                    </td>

                    <td valign="bottom" width="10">&nbsp;</td>

                    <td valign="bottom" width="83">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">$1,084</font></p>
                    </td>

                    <td valign="bottom" width="14">&nbsp;</td>
                </tr>
            </table>

            <p align="center"><font size="2">18</font></p>
            <hr align="center" width="100%" noshade size="2">
            <br>
            <br>
            <br>
            <br>


            <p align="center"><b><font style="FONT-SIZE: 10pt">RCM TECHNOLOGIES, INC. AND SUBSIDIARIES</font></b></p>

            <p align="center"><b><font style="FONT-SIZE: 10pt">N</font></b><b><font style="FONT-SIZE: 10pt">OTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS</font></b></p>

            <p align="center"><i><font style="FONT-SIZE: 10pt">(Dollars in thousands, except share and per share amounts, unless otherwise indicated)</font></i></p>

            <p align="left"><b><font style="FONT-SIZE: 10pt">14.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Segment Information (Continued)</font></b></p>

            <table style="MARGIN-LEFT: 0.1in" cellspacing="0" cellpadding="0" width="644" border="0">
                <tr bgcolor="#ccffff">
                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="160">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><b><font style="FONT-SIZE: 10pt">Thirteen Weeks Ended<br>
                        March 31, 2007</font></b></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="10">&nbsp;</td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="87">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt">Information<br>
                        Technology</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="10">&nbsp;</td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="82">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt">Engineering</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="17">&nbsp;</td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="82">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt">Commercial</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="9">&nbsp;</td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="72">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt">Corporate</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="10">&nbsp;</td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="83">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt">Total</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="9">&nbsp;</td>
                </tr>

                <tr>
                    <td style="BORDER-TOP: medium none" valign="bottom" width="160">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="10">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="87">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="10">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="82">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="17">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="82">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="9">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="72">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="10">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="83">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="9">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td valign="bottom" width="160">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">Revenue</font></p>
                    </td>

                    <td valign="bottom" width="10">&nbsp;</td>

                    <td valign="bottom" width="87">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">$25,057</font></p>
                    </td>

                    <td valign="bottom" width="10">&nbsp;</td>

                    <td valign="bottom" width="82">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">$18,975</font></p>
                    </td>

                    <td valign="bottom" width="17">&nbsp;</td>

                    <td valign="bottom" width="82">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">$10,461</font></p>
                    </td>

                    <td valign="bottom" width="9">&nbsp;</td>

                    <td valign="bottom" width="72">&nbsp;</td>

                    <td valign="bottom" width="10">&nbsp;</td>

                    <td valign="bottom" width="83">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">$54,493</font></p>
                    </td>

                    <td valign="bottom" width="9">&nbsp;</td>
                </tr>

                <tr>
                    <td valign="bottom" width="160">&nbsp;</td>

                    <td valign="bottom" width="10">&nbsp;</td>

                    <td valign="bottom" width="87">&nbsp;</td>

                    <td valign="bottom" width="10">&nbsp;</td>

                    <td valign="bottom" width="82">&nbsp;</td>

                    <td valign="bottom" width="17">&nbsp;</td>

                    <td valign="bottom" width="82">&nbsp;</td>

                    <td valign="bottom" width="9">&nbsp;</td>

                    <td valign="bottom" width="72">&nbsp;</td>

                    <td valign="bottom" width="10">&nbsp;</td>

                    <td valign="bottom" width="83">&nbsp;</td>

                    <td valign="bottom" width="9">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="160">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">Operating expenses</font> <sup><font style="FONT-SIZE: 10pt">(1)</font></sup> <sup><font style="FONT-SIZE: 10pt">(2)</font></sup></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="10">&nbsp;</td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="87">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">23,563</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="10">&nbsp;</td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="82">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">18,305</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="17">&nbsp;</td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="82">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">10,342</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="9">&nbsp;</td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="72">&nbsp;</td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="10">&nbsp;</td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="83">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">52,210</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="9">&nbsp;</td>
                </tr>

                <tr>
                    <td style="BORDER-TOP: medium none" valign="bottom" width="160">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="10">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="87">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="10">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="82">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="17">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="82">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="9">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="72">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="10">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="83">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="9">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td valign="bottom" width="160">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">EBITDA</font><sup><font style="FONT-SIZE: 10pt">(</font></sup><sup><font style="FONT-SIZE: 10pt">3</font></sup> <sup><font style="FONT-SIZE: 10pt">)</font></sup></p>
                    </td>

                    <td valign="bottom" width="10">&nbsp;</td>

                    <td valign="bottom" width="87">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">1,494</font></p>
                    </td>

                    <td valign="bottom" width="10">&nbsp;</td>

                    <td valign="bottom" width="82">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">670</font></p>
                    </td>

                    <td valign="bottom" width="17">&nbsp;</td>

                    <td valign="bottom" width="82">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">119</font></p>
                    </td>

                    <td valign="bottom" width="9">&nbsp;</td>

                    <td valign="bottom" width="72">&nbsp;</td>

                    <td valign="bottom" width="10">&nbsp;</td>

                    <td valign="bottom" width="83">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">2,283</font></p>
                    </td>

                    <td valign="bottom" width="9">&nbsp;</td>
                </tr>

                <tr>
                    <td valign="bottom" width="160">&nbsp;</td>

                    <td valign="bottom" width="10">&nbsp;</td>

                    <td valign="bottom" width="87">&nbsp;</td>

                    <td valign="bottom" width="10">&nbsp;</td>

                    <td valign="bottom" width="82">&nbsp;</td>

                    <td valign="bottom" width="17">&nbsp;</td>

                    <td valign="bottom" width="82">&nbsp;</td>

                    <td valign="bottom" width="9">&nbsp;</td>

                    <td valign="bottom" width="72">&nbsp;</td>

                    <td valign="bottom" width="10">&nbsp;</td>

                    <td valign="bottom" width="83">&nbsp;</td>

                    <td valign="bottom" width="9">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td valign="bottom" width="160">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">Depreciation</font></p>
                    </td>

                    <td valign="bottom" width="10">&nbsp;</td>

                    <td valign="bottom" width="87">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">119</font></p>
                    </td>

                    <td valign="bottom" width="10">&nbsp;</td>

                    <td valign="bottom" width="82">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">118</font></p>
                    </td>

                    <td valign="bottom" width="17">&nbsp;</td>

                    <td valign="bottom" width="82">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">37</font></p>
                    </td>

                    <td valign="bottom" width="9">&nbsp;</td>

                    <td valign="bottom" width="72">&nbsp;</td>

                    <td valign="bottom" width="10">&nbsp;</td>

                    <td valign="bottom" width="83">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">274</font></p>
                    </td>

                    <td valign="bottom" width="9">&nbsp;</td>
                </tr>

                <tr>
                    <td valign="bottom" width="160">&nbsp;</td>

                    <td valign="bottom" width="10">&nbsp;</td>

                    <td valign="bottom" width="87">&nbsp;</td>

                    <td valign="bottom" width="10">&nbsp;</td>

                    <td valign="bottom" width="82">&nbsp;</td>

                    <td valign="bottom" width="17">&nbsp;</td>

                    <td valign="bottom" width="82">&nbsp;</td>

                    <td valign="bottom" width="9">&nbsp;</td>

                    <td valign="bottom" width="72">&nbsp;</td>

                    <td valign="bottom" width="10">&nbsp;</td>

                    <td valign="bottom" width="83">&nbsp;</td>

                    <td valign="bottom" width="9">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td valign="bottom" width="160">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">Amortization of intangibles</font></p>
                    </td>

                    <td valign="bottom" width="10">&nbsp;</td>

                    <td valign="bottom" width="87">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">72</font></p>
                    </td>

                    <td valign="bottom" width="10">&nbsp;</td>

                    <td valign="bottom" width="82">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">8</font></p>
                    </td>

                    <td valign="bottom" width="17">&nbsp;</td>

                    <td valign="bottom" width="82">&nbsp;</td>

                    <td valign="bottom" width="9">&nbsp;</td>

                    <td valign="bottom" width="72">&nbsp;</td>

                    <td valign="bottom" width="10">&nbsp;</td>

                    <td valign="bottom" width="83">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">80</font></p>
                    </td>

                    <td valign="bottom" width="9">&nbsp;</td>
                </tr>

                <tr>
                    <td style="BORDER-TOP: black 0.5pt solid" valign="bottom" width="160">&nbsp;</td>

                    <td style="BORDER-TOP: black 0.5pt solid" valign="bottom" width="10">&nbsp;</td>

                    <td style="BORDER-TOP: black 0.5pt solid" valign="bottom" width="87">&nbsp;</td>

                    <td style="BORDER-TOP: black 0.5pt solid" valign="bottom" width="10">&nbsp;</td>

                    <td style="BORDER-TOP: black 0.5pt solid" valign="bottom" width="82">&nbsp;</td>

                    <td style="BORDER-TOP: black 0.5pt solid" valign="bottom" width="17">&nbsp;</td>

                    <td style="BORDER-TOP: black 0.5pt solid" valign="bottom" width="82">&nbsp;</td>

                    <td style="BORDER-TOP: black 0.5pt solid" valign="bottom" width="9">&nbsp;</td>

                    <td style="BORDER-TOP: black 0.5pt solid" valign="bottom" width="72">&nbsp;</td>

                    <td style="BORDER-TOP: black 0.5pt solid" valign="bottom" width="10">&nbsp;</td>

                    <td style="BORDER-TOP: black 0.5pt solid" valign="bottom" width="83">&nbsp;</td>

                    <td style="BORDER-TOP: black 0.5pt solid" valign="bottom" width="9">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td valign="bottom" width="160">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">Operating income</font></p>
                    </td>

                    <td valign="bottom" width="10">&nbsp;</td>

                    <td valign="bottom" width="87">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">1,303</font></p>
                    </td>

                    <td valign="bottom" width="10">&nbsp;</td>

                    <td valign="bottom" width="82">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">544</font></p>
                    </td>

                    <td valign="bottom" width="17">&nbsp;</td>

                    <td valign="bottom" width="82">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">82</font></p>
                    </td>

                    <td valign="bottom" width="9">&nbsp;</td>

                    <td valign="bottom" width="72">&nbsp;</td>

                    <td valign="bottom" width="10">&nbsp;</td>

                    <td valign="bottom" width="83">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">1,929</font></p>
                    </td>

                    <td valign="bottom" width="9">&nbsp;</td>
                </tr>

                <tr>
                    <td valign="bottom" width="160">&nbsp;</td>

                    <td valign="bottom" width="10">&nbsp;</td>

                    <td valign="bottom" width="87">&nbsp;</td>

                    <td valign="bottom" width="10">&nbsp;</td>

                    <td valign="bottom" width="82">&nbsp;</td>

                    <td valign="bottom" width="17">&nbsp;</td>

                    <td valign="bottom" width="82">&nbsp;</td>

                    <td valign="bottom" width="9">&nbsp;</td>

                    <td valign="bottom" width="72">&nbsp;</td>

                    <td valign="bottom" width="10">&nbsp;</td>

                    <td valign="bottom" width="83">&nbsp;</td>

                    <td valign="bottom" width="9">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td valign="bottom" width="160">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">Interest expense, net of (interest income)</font></p>
                    </td>

                    <td valign="bottom" width="10">&nbsp;</td>

                    <td valign="bottom" width="87">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">4</font></p>
                    </td>

                    <td valign="bottom" width="10">&nbsp;</td>

                    <td valign="bottom" width="82">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">3</font></p>
                    </td>

                    <td valign="bottom" width="17">&nbsp;</td>

                    <td valign="bottom" width="82">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">1</font></p>
                    </td>

                    <td valign="bottom" width="9">&nbsp;</td>

                    <td valign="bottom" width="72">&nbsp;</td>

                    <td valign="bottom" width="10">&nbsp;</td>

                    <td valign="bottom" width="83">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">8</font></p>
                    </td>

                    <td valign="bottom" width="9">&nbsp;</td>
                </tr>

                <tr>
                    <td valign="bottom" width="160">&nbsp;</td>

                    <td valign="bottom" width="10">&nbsp;</td>

                    <td valign="bottom" width="87">&nbsp;</td>

                    <td valign="bottom" width="10">&nbsp;</td>

                    <td valign="bottom" width="82">&nbsp;</td>

                    <td valign="bottom" width="17">&nbsp;</td>

                    <td valign="bottom" width="82">&nbsp;</td>

                    <td valign="bottom" width="9">&nbsp;</td>

                    <td valign="bottom" width="72">&nbsp;</td>

                    <td valign="bottom" width="10">&nbsp;</td>

                    <td valign="bottom" width="83">&nbsp;</td>

                    <td valign="bottom" width="9">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td valign="bottom" width="160">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">Loss on foreign currency transactions</font></p>
                    </td>

                    <td valign="bottom" width="10">&nbsp;</td>

                    <td valign="bottom" width="87">&nbsp;</td>

                    <td valign="bottom" width="10">&nbsp;</td>

                    <td valign="bottom" width="82">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">2</font></p>
                    </td>

                    <td valign="bottom" width="17">&nbsp;</td>

                    <td valign="bottom" width="82">&nbsp;</td>

                    <td valign="bottom" width="9">&nbsp;</td>

                    <td valign="bottom" width="72">&nbsp;</td>

                    <td valign="bottom" width="10">&nbsp;</td>

                    <td valign="bottom" width="83">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">2</font></p>
                    </td>

                    <td valign="bottom" width="9">&nbsp;</td>
                </tr>

                <tr>
                    <td valign="bottom" width="160">&nbsp;</td>

                    <td valign="bottom" width="10">&nbsp;</td>

                    <td valign="bottom" width="87">&nbsp;</td>

                    <td valign="bottom" width="10">&nbsp;</td>

                    <td valign="bottom" width="82">&nbsp;</td>

                    <td valign="bottom" width="17">&nbsp;</td>

                    <td valign="bottom" width="82">&nbsp;</td>

                    <td valign="bottom" width="9">&nbsp;</td>

                    <td valign="bottom" width="72">&nbsp;</td>

                    <td valign="bottom" width="10">&nbsp;</td>

                    <td valign="bottom" width="83">&nbsp;</td>

                    <td valign="bottom" width="9">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td valign="bottom" width="160">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">Legal settlement</font></p>
                    </td>

                    <td valign="bottom" width="10">&nbsp;</td>

                    <td valign="bottom" width="87">&nbsp;</td>

                    <td valign="bottom" width="10">&nbsp;</td>

                    <td valign="bottom" width="82">&nbsp;</td>

                    <td valign="bottom" width="17">&nbsp;</td>

                    <td valign="bottom" width="82">&nbsp;</td>

                    <td valign="bottom" width="9">&nbsp;</td>

                    <td valign="bottom" width="72">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">($800</font></p>
                    </td>

                    <td valign="bottom" width="10">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">)</font></p>
                    </td>

                    <td valign="bottom" width="83">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">(800</font></p>
                    </td>

                    <td valign="bottom" width="9">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">)</font></p>
                    </td>
                </tr>

                <tr>
                    <td valign="bottom" width="160">&nbsp;</td>

                    <td valign="bottom" width="10">&nbsp;</td>

                    <td valign="bottom" width="87">&nbsp;</td>

                    <td valign="bottom" width="10">&nbsp;</td>

                    <td valign="bottom" width="82">&nbsp;</td>

                    <td valign="bottom" width="17">&nbsp;</td>

                    <td valign="bottom" width="82">&nbsp;</td>

                    <td valign="bottom" width="9">&nbsp;</td>

                    <td valign="bottom" width="72">&nbsp;</td>

                    <td valign="bottom" width="10">&nbsp;</td>

                    <td valign="bottom" width="83">&nbsp;</td>

                    <td valign="bottom" width="9">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="160">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">Income taxes</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="10">&nbsp;</td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="87">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">548</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="10">&nbsp;</td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="82">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">228</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="17">&nbsp;</td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="82">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">34</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="9">&nbsp;</td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="72">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">338</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="10">&nbsp;</td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="83">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">1,148</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="9">&nbsp;</td>
                </tr>

                <tr>
                    <td style="BORDER-TOP: medium none" valign="bottom" width="160">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="10">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="87">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="10">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="82">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="17">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="82">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="9">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="72">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="10">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="83">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="9">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td style="BORDER-BOTTOM: black 2pt double" valign="bottom" width="160">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">Net income</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 2pt double" valign="bottom" width="10">&nbsp;</td>

                    <td style="BORDER-BOTTOM: black 2pt double" valign="bottom" width="87">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">$751</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 2pt double" valign="bottom" width="10">&nbsp;</td>

                    <td style="BORDER-BOTTOM: black 2pt double" valign="bottom" width="82">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">$311</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 2pt double" valign="bottom" width="17">&nbsp;</td>

                    <td style="BORDER-BOTTOM: black 2pt double" valign="bottom" width="82">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">$47</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 2pt double" valign="bottom" width="9">&nbsp;</td>

                    <td style="BORDER-BOTTOM: black 2pt double" valign="bottom" width="72">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">$462</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 2pt double" valign="bottom" width="10">&nbsp;</td>

                    <td style="BORDER-BOTTOM: black 2pt double" valign="bottom" width="83">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">$1,571</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 2pt double" valign="bottom" width="9">&nbsp;</td>
                </tr>

                <tr>
                    <td style="BORDER-TOP: medium none" valign="bottom" width="160">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="10">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="87">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="10">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="82">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="17">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="82">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="9">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="72">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="10">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="83">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="9">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td valign="bottom" width="160">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">Total assets</font></p>
                    </td>

                    <td valign="bottom" width="10">&nbsp;</td>

                    <td valign="bottom" width="87">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">$57,557</font></p>
                    </td>

                    <td valign="bottom" width="10">&nbsp;</td>

                    <td valign="bottom" width="82">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">$26,134</font></p>
                    </td>

                    <td valign="bottom" width="17">&nbsp;</td>

                    <td valign="bottom" width="82">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">$11,176</font></p>
                    </td>

                    <td valign="bottom" width="9">&nbsp;</td>

                    <td valign="bottom" width="72">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">$10,051</font></p>
                    </td>

                    <td valign="bottom" width="10">&nbsp;</td>

                    <td valign="bottom" width="83">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">$100,918</font></p>
                    </td>

                    <td valign="bottom" width="9">&nbsp;</td>
                </tr>

                <tr>
                    <td valign="bottom" width="160">&nbsp;</td>

                    <td valign="bottom" width="10">&nbsp;</td>

                    <td valign="bottom" width="87">&nbsp;</td>

                    <td valign="bottom" width="10">&nbsp;</td>

                    <td valign="bottom" width="82">&nbsp;</td>

                    <td valign="bottom" width="17">&nbsp;</td>

                    <td valign="bottom" width="82">&nbsp;</td>

                    <td valign="bottom" width="9">&nbsp;</td>

                    <td valign="bottom" width="72">&nbsp;</td>

                    <td valign="bottom" width="10">&nbsp;</td>

                    <td valign="bottom" width="83">&nbsp;</td>

                    <td valign="bottom" width="9">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td valign="bottom" width="160">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">Capital expenditures</font></p>
                    </td>

                    <td valign="bottom" width="10">&nbsp;</td>

                    <td valign="bottom" width="87">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">$161</font></p>
                    </td>

                    <td valign="bottom" width="10">&nbsp;</td>

                    <td valign="bottom" width="82">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">$2</font></p>
                    </td>

                    <td valign="bottom" width="17">&nbsp;</td>

                    <td valign="bottom" width="82">&nbsp;</td>

                    <td valign="bottom" width="9">&nbsp;</td>

                    <td valign="bottom" width="72">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">$47</font></p>
                    </td>

                    <td valign="bottom" width="10">&nbsp;</td>

                    <td valign="bottom" width="83">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">$210</font></p>
                    </td>

                    <td valign="bottom" width="9">&nbsp;</td>
                </tr>
            </table>

            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.3in; FONT-FAMILY: 'GOUDYOLST BT'" align="justify"><sup><font style="FONT-FAMILY: 'TIMES NEW ROMAN'">(1)</font></sup><font style="FONT-SIZE: 8pt; FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;&nbsp;Operating expenses exclude depreciation and amortization.</font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.3in; FONT-FAMILY: 'GOUDYOLST BT'" align="justify"><sup><font style="FONT-FAMILY: 'TIMES NEW ROMAN'">(2)</font></sup><sup><font style="FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;</font></sup><font style="FONT-SIZE: 8pt; FONT-FAMILY: 'TIMES NEW ROMAN'">Operating expensesinclude $93</font> <font style="FONT-SIZE: 8pt; FONT-FAMILY: 'TIMES NEW ROMAN'">and $186 of share</font>
            <font style="FONT-SIZE: 8pt; FONT-FAMILY: 'TIMES NEW ROMAN'">based compensation expense</font> <font style="FONT-SIZE: 8pt; FONT-FAMILY: 'TIMES NEW ROMAN'">for the years ended March 29,&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2008&nbsp; and March 31, 2007, respectively.</font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.3in; FONT-FAMILY: 'GOUDYOLST BT'" align="justify"><sup><font style="FONT-FAMILY: 'TIMES NEW ROMAN'">(3</font></sup><sup><font style="FONT-FAMILY: 'TIMES NEW ROMAN'">)</font></sup>&nbsp;<font size="1">&nbsp;EBITDA means earnings before interest,</font> <font size="1"><font style="FONT-SIZE: 8pt; FONT-FAMILY: 'TIMES NEW ROMAN'">taxes,depreciation</font> and amortization. We believe that EBITDA, as
            presented, represents a useful measure of assessing the performance of our operating activities, as it reflects our earnings trends without the impact of certain non-cash and unusual charges or income. EBITDA is also used by our creditors in assessing debt covenant compliance. We understand that, although security analysts frequently use EBITDA in the evaluation of companies, it is not necessarily comparable toEBITDA ofother companies due to potential inconsistencies in the method
            of calculation. EBITDA is not intended as an alternative to cash flow provided by operating activities as a measure of liquidity,noras an alternative to net income as an indicator of our operating performance, nor as an alternative to any other measure of performance in conformity with generally accepted accounting principles in the United States of America.</font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.3in; FONT-FAMILY: 'GOUDYOLST BT'" align="center"><font size="2">19</font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.3in; FONT-FAMILY: 'GOUDYOLST BT'" align="justify"></p>
            <hr align="center" width="100%" noshade size="2">
            <br>
            <br>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.3in; FONT-FAMILY: 'GOUDYOLST BT'" align="center"><br>
            <b><font style="FONT-SIZE: 10pt; COLOR: #000000">RCM TECHNOLOGIES, INC. AND SUBSIDIARIES</font></b></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; BORDER-BOTTOM: 0.5pt solid" align="center"><b><font style="FONT-SIZE: 10pt">NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS</font></b></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; BORDER-BOTTOM: 0.5pt solid" align="center"><i><font style="FONT-SIZE: 10pt">(Dollars in thousands, except share and per share amounts, unless otherwise indicated)</font></i></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><b><font style="FONT-SIZE: 10pt">14.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Segment Information (Continued)</font></b></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><strong><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></strong> <font style="FONT-SIZE: 10pt">Revenues reported for each operating segment are from external customers.<br>
            &nbsp;<br>
            &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Company</font> <font style="FONT-SIZE: 10pt">is domiciled in the UnitedStates</font> <font style="FONT-SIZE: 10pt">and its segments operate in the United</font> <font style="FONT-SIZE: 10pt">States</font> <font style="FONT-SIZE: 10pt">and&nbsp;&nbsp;&nbsp; Canada.&nbsp;&nbsp;&nbsp;&nbsp; Revenues and fixed assets by geographic areaas of andfor the</font> <font style="FONT-SIZE: 10pt">thirteen weeksendedMarch 29, 2008 and March 31,
            2007</font> <font style="FONT-SIZE: 10pt">are as follows:</font></p>

            <table style="MARGIN-LEFT: 0.3in" cellspacing="0" cellpadding="0" width="461" border="0">
                <tr bgcolor="#ccffff">
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="250">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="15">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="184" colspan="3">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000">Thirteen Weeks Ended</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="12">&nbsp;</td>
                </tr>

                <tr>
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="250">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="COLOR: #000000"><a name="OLE_LINK4"></a><a name="OLE_LINK5"></a></font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="15">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="88">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000">March 29,<br>
                        2008</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="12">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="83">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000">March 31,<br>
                        2007</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="12">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="250">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt">Revenues</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="15">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="88">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="12">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="83">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="12">&nbsp;</td>
                </tr>

                <tr>
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="250">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">U. S.</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="15">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="88">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">$44,157</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="12">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="83">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">$51,252</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="12">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="250">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">Canada</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="15">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="88">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">4,957</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="12">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="83">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">3,241</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="12">&nbsp;</td>
                </tr>

                <tr>
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 2pt double" valign="bottom" width="250">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 2pt double" valign="bottom" width="15">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 2pt double" valign="bottom" width="88">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">$49,114</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 2pt double" valign="bottom" width="12">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 2pt double" valign="bottom" width="83">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">$54,493</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="12">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="250">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="15">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="88">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="12">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="83">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="12">&nbsp;</td>
                </tr>

                <tr>
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="250">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">Fixed Assets</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="15">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="88">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="12">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="83">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="12">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="250">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt">U.S.</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="15">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="88">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">$4,946</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="12">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="83">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">$4,296</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="12">&nbsp;</td>
                </tr>

                <tr>
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="250">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt">Canada</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="15">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="88">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">86</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="12">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="83">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">32</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="12">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 2pt double" valign="bottom" width="250">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 2pt double" valign="bottom" width="15">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 2pt double" valign="bottom" width="88">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">$5,032</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 2pt double" valign="bottom" width="12">&nbsp;</td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: black 2pt double" valign="bottom" width="83">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">$4,328</font></p>
                    </td>

                    <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="12">&nbsp;</td>
                </tr>
            </table>
            <br>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.3in; TEXT-INDENT: -18px" align="justify"><b><font style="FONT-SIZE: 10pt"><a name="OLE_LINK22"></a><a name="OLE_LINK23">15.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contingencies</a></font></b></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.3in" align="justify">In late 1998, two shareholders who were formerly officers and directors of the Company filed suit against the Company. The former officers and directors alleged that the Company wrongfully limited the number of shares of the Company's common stock that could have been sold by the plaintiffs under a registration rights agreement entered into in connection with an acquisition
            transaction pursuant to which the plaintiffs became shareholders of the Company.<br>
            &nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.3in" align="justify">A trial in 2002 resulted in a judgment in favor of the plaintiffs for $7.6 million that was affirmed on appeal. In June 2006, the Company paid $8.6 million, which included post-judgment interest and other items totaling $1.0 million to the plaintiffs to satisfy the judgment.<br>
            &nbsp;<br>
            In November 2002, the Company filed suit on professional liability claims against the attorneys and law firms who had served as its counsel in the acquisition transaction and in connection with its subsequent dealings with the plaintiffs concerning their various relationships with the Company resulting from that transaction. In its lawsuit against its former counsel, the Company is seeking complete indemnification with respect to (1) its costs and counsel fees incurred in the
            defense against the claims of the plaintiffs; (2) the amount it paid to satisfy the judgment; and (3) its costs and counsel fees incurred in the prosecution of the legal malpractice action itself. In February 2007, the Company reached a settlement with one of the law firm defendants resulting in the recovery of $0.8 million. Discovery proceedings will continue with the other defendants until December 2008 and a trial will likely be scheduled in the first half of 2009. The Company
            was recently granted leave to amend its complaint to assert a claim for punitive damages against one of the remaining defendants.<br>
            &nbsp;<br>
            The Company is party to two agreements of indemnity related to the performance of two construction projects by a customer of the Company. In the event of non-performance by the customer, the Company may be obligated to indemnify the project owners for certain cost overruns on such projects which management believes would not have a significant adverse financial impact to the financial position of the Company and its results of operations.<br>
            &nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.3in" align="justify">The Company is also subject to other pending legal proceedings and claims that arise from time to time in the ordinary course of its business, which may or may not be covered by insurance.</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.3in" align="center">20</p>
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            <hr align="center" width="100%" noshade size="2">

            <p style="PAGE-BREAK-AFTER: always"></p>
            <!-- EEDocs PBEnd-->

            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">.<b>RCM TECHNOLOGIES, INC. AND SUBSIDIARIES</b></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-WEIGHT: bold; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.6in; TEXT-INDENT: -43px; BORDER-BOTTOM: 0.5pt solid" align="left"><b>ITEM 2. MANAGEMENT&rsquo;S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS</b></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-WEIGHT: bold; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; TEXT-DECORATION: underline" align="left"><b>Private Securities Litigation Reform Act Safe Harbor Statement</b></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">Certain statements included herein and in other reports and public filings made by RCM Technologies, Inc. (&ldquo;RCM&rdquo; or the &ldquo;Company&rdquo;) are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, without limitation, statements regarding the adoption by businesses of new
            technology solutions; the use by businesses of outsourced solutions, such as those offered by the Company in connection with such adoption; and the outcome of litigation (at both the trial and appellate levels) involving the Company. Readers are cautioned that such forward-looking statements, as well as others made by the Company, which may be identified by words such as &ldquo;may,&rdquo; &ldquo;will,&rdquo; &ldquo;expect,&rdquo; &ldquo;anticipate,&rdquo; &ldquo;continue,&rdquo;
            &ldquo;estimate,&rdquo; &ldquo;project,&rdquo; &ldquo;intend,&rdquo; &ldquo;believe,&rdquo; and similar expressions, are only predictions and are subject to risks and uncertainties that could cause the Company's actual results and financial position to differ materially from such statements. Such risks and uncertainties include, without limitation: (i) unemployment and general economic conditions affecting the provision of information technology and engineering services and
            solutions and the placement of temporary staffing personnel; (ii) the Company's ability to continue to attract, train and retain personnel qualified to meet the requirements of its clients; (iii) the Company's ability to identify appropriate acquisition candidates, complete such acquisitions and successfully integrate acquired businesses; (iv) uncertainties regarding pro forma financial information and the underlying assumptions relating to acquisitions and acquired businesses; (v)
            uncertainties regarding amounts of deferred consideration and earnout payments to become payable to former shareholders of acquired businesses; (vi) adverse effects on the market price of the Company's common stock due to the potential resale into the market of significant amounts of common stock; (vii) the adverse effect a potential decrease in the trading price of the Company's common stock would have upon the Company's ability to acquire businesses through the issuance of its
            securities; (viii) the Company's ability to obtain financing on satisfactory terms; (ix) the reliance of the Company upon the continued service of its executive officers; (x) the Company's ability to remain competitive in the markets that it serves; (xi) the Company's ability to maintain its unemployment insurance premiums and workers compensation premiums; (xii) the risk of claims being made against the Company associated with providing temporary staffing services; (xiii) the
            Company's ability to manage significant amounts of information and periodically expand and upgrade its information processing capabilities; (xiv) the Company's ability to remain in compliance with federal and state wage and hour laws and regulations; (xv) uncertainties in predictions as to the future need for the Company&rsquo;s services; (xvi) uncertainties relating to the allocation of costs and expenses to each of the Company&rsquo;s operating segments; (xvii) the costs of
            conducting and the outcome of litigation involving the Company, and (xviii) other economic, competitive and governmental factors affecting the Company's operations, markets, products and services. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date made. The Company undertakes no obligation to publicly release the results of any revision of these forward-looking statements to reflect these trends or circumstances
            after the date they are made or to reflect the occurrence of unanticipated events.</p>

            <p></p>

            <p align="center"><font size="2">21</font></p>
            <hr align="center" width="100%" noshade size="2">
            <br>
            <br>
            <br>
            <br>
            <br>


            <p style="PAGE-BREAK-AFTER: always"></p>
            <!-- EEDocs PBEnd-->

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b><font style="FONT-SIZE: 10pt">RCM TECHNOLOGIES, INC. AND SUBSIDIARIES</font></b></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b><font style="FONT-SIZE: 10pt">Management's Discussion and Analysis of</font></b></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; BORDER-BOTTOM: 0.5pt solid" align="center"><b><font style="FONT-SIZE: 10pt">Financial Condition and Results of Operations - (Continued)</font></b></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><b><i><font style="FONT-SIZE: 10pt; COLOR: #000000">Overview</font></i></b></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt">RCM participates in a market that iscyclical in nature andsensitive to economic changes. As a result, the impact of economic changes on revenues and operations can be substantial, resulting in significant volatility in the Company&rsquo;s financial performance.</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt">RCM&rsquo;s operational performance in fiscal year 2007 showed a modest improvement in revenues and earnings overfiscal year 2006. However,RCM&rsquo;s revenues began tolose positive momentum by trending</font> <font style="FONT-SIZE: 10pt">lower in the second half of 2007 due to aweakening global economy</font>
            <font style="FONT-SIZE: 10pt">and recessionary concerns.</font> <font style="FONT-SIZE: 10pt">This slowdown has continued into 2008 as the business environment remains a challenging one for the near term. RCM continues to be vigilant in monitoring its operating cost structure with a strong focus on working capital management and cash flows.</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt">Over the years, RCM has developed and assembled an attractive portfolio of capabilities, established a proven record of performance and credibility and built an efficient pricing structure. The Company is committed to optimizing its business model as a single-source premier provider of business and technology solutions with a strong
            vertical focus offering an integrated suite of services through a global delivery platform.<br>
            <br>
            The Company believes that most companies recognize the importance of advanced technologies and business processes to compete in today&rsquo;s business climate. However, the process of designing, developing and implementing business and technology solutions is becoming increasingly complex. The Company believes that many businesses today are focused on return on investment analysis in prioritizing their initiatives. This has an impact on spending by current and prospective clients
            for many emerging new solutions.</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt">Nonetheless, the Company continues to believe that businesses must implement more advanced IT and engineering solutions to upgrade their systems, applications and processes so that they can maximize their productivity and optimize their performance in order to maintain a competitive advantage. Although working under budgetary, personnel
            and expertise constraints, companies are driven to support increasingly complex systems, applications</font> <font style="FONT-SIZE: 10pt">and processes of significant strategic value. This has given rise to a demand for outsourcing. The Company believes that its current and prospective clients are continuing to evaluate the potential for outsourcing business</font> <font style="FONT-SIZE: 10pt">critical systems, applications</font> <font style="FONT-SIZE: 10pt">and
            processes.</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt">The Company provides project management and consulting services, which are billed based on either agreed-upon fixed fees or hourly rates, or a combination of both. The billing rates and profit margins for project management and solutions services are higher than those for professional consulting services. The Company generally endeavors to
            expand its sales of higher margin solutions and project management services. The Company also realizes revenues from client engagements that range from the placement of contract and temporary technical consultants to project assignments that entail the delivery of end-to-end solutions. These services are primarily provided to the client at hourly rates that are established for each of the Company's consultants based upon their skill level, experience and the type of work
            performed.</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt">The majority of the Company's services are provided under purchase orders. Contracts are utilized on certain of the more complex assignments where the engagements are for longer terms or where precise documentation on the nature and scope of the assignment is necessary. Although contracts normally relate to longer-term and more complex
            engagements, they do not obligate the customer to purchase a minimum level of services and are generally terminable by the customer on 60 to 90 days&rsquo; notice. Revenues are recognized when services are provided.</font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font size="2">22</font></p>
            <hr align="center" width="100%" noshade size="2">
            <br>
            <br>

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            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b><font style="FONT-SIZE: 10pt">RCM TECHNOLOGIES, INC. AND SUBSIDIARIES</font></b></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b><font style="FONT-SIZE: 10pt">Management's Discussion and Analysis of</font></b></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; BORDER-BOTTOM: 0.5pt solid" align="center"><b><font style="FONT-SIZE: 10pt">Financial Condition and Results of Operations - (Continued)</font></b></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><b><i><font style="FONT-SIZE: 10pt; COLOR: #000000">Overview (Continued)</font></i></b></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt">Costs of services consist primarily of salaries and compensation-related expenses for billable consultants, including payroll taxes, employee benefits, and insurance. Selling, general and administrative expenses consist primarily of salaries and benefits of personnel responsible for business development, recruiting, operating activities,
            and training, and include corporate overhead expenses. Corporate overhead expenses relate to salaries and benefits of personnel responsible for corporate activities, including the Company's corporate marketing, administrative and reporting responsibilities and acquisition program. The Company records these expenses when incurred. Depreciation relates primarily to the fixed assets of the Company. Amortization relates to the allocation of the purchase price of an acquisition, which
            has been assigned to covenants not to compete, and customer lists. Acquisitions have been accounted for under Financial Accounting Standards Board (&ldquo;FASB&rdquo;) Statement of Financial Account Standards (&ldquo;SFAS&rdquo;) No. 141, &ldquo;Business Combinations,&rdquo; and have created goodwill.</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><b><i><font style="FONT-SIZE: 10pt">Critical Accounting Policies</font></i></b></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt">The Company&rsquo;s consolidated financial statements were prepared in accordance withU. S.generally accepted accounting principles, which require management to make subjective decisions, assessments and estimates about the effect of matters that are inherently uncertain. As the number of variables and assumptions affecting the judgment
            increases, such judgments become even more subjective. While management believes</font> <font style="FONT-SIZE: 10pt">its assumptions are reasonable and appropriate, actual results may be materially different from estimated. Management has identified certain critical accounting policies, described below, that require significant judgment to be exercised by management.</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><b><i><font style="FONT-SIZE: 10pt">Revenue Recognition</font></i></b></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt">The Company derives its revenues from several sources. All of the Company&rsquo;s segments perform consulting and staffing services. The Company&rsquo;s Engineering Services and Information Technology Services segments also perform project services. All of the Company&rsquo;s segments derive revenue from permanent placement fees.<br>
            &nbsp;</font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font face="Times New Roman, Times, serif" size="2"><em><u>Project Services</u></em> - The Company recognizes revenues in accordance with the Securities and Exchange Commission, Staff Accounting Bulletin ("SAB") No. 104, &ldquo;Revenue Recognition&rdquo; which clarifies application of U.S. generally accepted accounting principles to revenue transactions. Project
            services are generally provided on a cost-plus-fixed-fee or time-and-material basis. Typically, a customer will outsource a discrete project or activity and the Company assumes responsibility for the performance of such project or activity. The Company recognizes revenues and associated costs on a gross basis as services are provided to the customer and costs are incurred using its employees. The Company, from time to time, enters into contracts requiring the completion of specific
            deliverables.&nbsp; The Company recognizes revenue on these deliverables at the time the client accepts and approves the deliverables. In instances where project services are provided on a fixed-price basis and the contract will extend beyond a 12-month period, revenue is recorded in accordance with the terms of each contract. In some instances, revenue is billed and recorded at the time certain milestones are reached, as defined in the contract. In other instances, revenue is
            billed and recorded based upon contractual rates per hour. In addition, some contracts contain &ldquo;Performance Fees&rdquo; (bonuses) for completing a contract under budget. Performance Fees, if any, are recorded when the contract is completed and the revenue is reasonably certain of collection. Some contracts also limit revenues and billings to maximum amounts. Provision for contract losses, if any, is made in the period such losses are determined. For contracts where there are
            multiple deliverables and the work has not been 100% complete on a specific deliverable, the costs have been deferred. The associated costs are expensed when the related revenue is recognized.</font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font size="2">23</font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"></p>
            <hr align="center" width="100%" noshade size="2">
            <br>
            <br>

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            <br>
            </p>

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            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b><font style="FONT-SIZE: 10pt">RCM TECHNOLOGIES, INC. AND SUBSIDIARIES</font></b></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b><font style="FONT-SIZE: 10pt">Management's Discussion and Analysis of</font></b></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; BORDER-BOTTOM: 0.5pt solid" align="center"><b><font style="FONT-SIZE: 10pt">Financial Condition and Results of Operations - (Continued)</font></b></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'ARIAL UNICODE MS'" align="left"><b><i><font style="FONT-FAMILY: 'TIMES NEW ROMAN'">Revenue Recognition (Continued)</font></i></b></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><i><font style="FONT-SIZE: 10pt">Consulting and Staffing Services</font></i> <font style="FONT-SIZE: 10pt">- Revenues derived from consulting and staffing services are recorded on a gross basis as services are performed and associated costs have been incurred using employees of the Company. In these circumstances, the Company assumes the risk of acceptability of its
            employees to its customers. In certain cases, the Company may utilize other companies and their employees to fulfill customer requirements. In these cases, the Company receives an administrative fee for arranging for, billing for, and collecting the billings related to these companies. The customer is typically responsible for assessing the work of these companies who have responsibility for acceptability of their personnel to the customer. Under these circumstances, the
            Company&rsquo;s reported revenues are net of associated costs (effectively the administrative fee).</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><i><font style="FONT-SIZE: 10pt">Permanent Placement Services</font></i><font style="FONT-SIZE: 10pt">- The Company earns permanent placement fees from providing permanent placement services. Fees for placements are recognized at the time the candidate commences employment. The Company guarantees its permanent placements on a prorated basis for 90 days. In the event a
            candidate is not retained for the 90-day period, the Company will provide a suitable replacement candidate. In the event a replacement candidate cannot be located, the Company will provide a prorated refund to the client. An allowance for refunds, based upon the Company&rsquo;s historical experience, is recorded in the financial statements. Revenues are recorded on a gross basis as a component of revenue.</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'ARIAL UNICODE MS'" align="left"><b><i><font style="FONT-FAMILY: 'TIMES NEW ROMAN'">Accounts Receivable</font></i></b></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'ARIAL UNICODE MS'" align="justify"><font style="FONT-FAMILY: 'TIMES NEW ROMAN'">The Company&rsquo;s accounts receivable are primarily due from trade customers. Credit is extended based on evaluation of customers&rsquo; financial condition and, generally, collateral is not required. Accounts receivable payment terms vary and are stated in the financial statements at
            amounts du</font><font style="FONT-FAMILY: 'TIMES'">e from customers net of an allowance for doubtful accounts. Accounts outstanding longer than the payment terms are considered past due. The Company determines its allowance by considering a number of factors, including the length of time trade accounts receivable are past due, the Company&rsquo;s previous loss history, the customer&rsquo;s current ability to pay its obligation to the Company</font>
            <font style="FONT-FAMILY: 'TIMES'">and the condition of the general economy and the industry as a whole. The Company writes off accounts receivable when they become uncollectible, and payments subsequently received on such receivables are credited to the allowance for doubtful accounts.</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'ARIAL UNICODE MS'" align="left"><b><i><font style="FONT-FAMILY: 'TIMES NEW ROMAN'">Goodwill</font></i></b></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'ARIAL UNICODE MS'" align="justify"><font style="FONT-FAMILY: 'TIMES'">Goodwill represents the excess of the cost of businesses acquired over the fair market value of identifiable assets.</font> <font style="FONT-FAMILY: 'TIMES'">In accordance with SFAS 142,&ldquo;Goodwill and Other Intangible Assets&rdquo;</font> <font style="FONT-FAMILY: 'TIMES'">(&ldquo;SFAS No.
            142&rdquo;),the Company performs its annual goodwill impairment testing, by reportable unit,as of November 30</font><sup><font style="FONT-FAMILY: 'TIMES'">th</font></sup> <font style="FONT-FAMILY: 'TIMES'">of each year, or more frequently if events or changes in circumstances indicate that goodwill may be impaired. Application of the goodwill impairment test requires significant judgments including estimation of future cash flows, which is dependent on internal forecasts,
            estimation of the long-term rate of growth for the businesses, the useful life over which cash flows will</font> <font style="FONT-FAMILY: 'TIMES'">occur, and determination of the Company&rsquo;s</font> <font style="FONT-FAMILY: 'TIMES'">weighted average cost of capital. Changes in these estimates and assumptions could materially affect the determination of fair value and/or conclusions on goodwill impairment for each reporting unit. The Company conducted its annual goodwill
            impairment test</font> <font style="FONT-FAMILY: 'TIMES'">for 2007 as of November 30, 2007</font> <font style="FONT-FAMILY: 'TIMES'">and identified no impairments. Goodwillwas$47.4 million and $39.6 millionat</font> <font style="FONT-FAMILY: 'TIMES'">March 29, 2008 and</font> <font style="FONT-FAMILY: 'TIMES'">December 29, 2007, respectively.</font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'ARIAL UNICODE MS'" align="center"><font size="2">24</font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'ARIAL UNICODE MS'" align="justify"></p>
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            <br>
            <br>


            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'ARIAL UNICODE MS'" align="justify"><br>
            <br>
            </p>

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            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'ARIAL UNICODE MS'" align="center"><b><font style="FONT-FAMILY: 'TIMES NEW ROMAN'">RCM TECHNOLOGIES, INC. AND SUBSIDIARIES</font></b></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b><font style="FONT-SIZE: 10pt">Management's Discussion and Analysis of</font></b></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; BORDER-BOTTOM: 0.5pt solid" align="center"><b><font style="FONT-SIZE: 10pt">Financial Condition and Results of Operations - (Continued)</font></b></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.3in; TEXT-INDENT: -18px; FONT-FAMILY: 'ARIAL UNICODE MS'" align="justify"><b><i><font style="FONT-FAMILY: 'TIMES NEW ROMAN'">Long-Lived Assets</font></i></b></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'ARIAL UNICODE MS'" align="justify"><font style="FONT-FAMILY: 'TIMES NEW ROMAN'">The Company evaluates long-lived assets and intangible assets with definite lives for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. When it is probable that undiscounted future cash flows will not be sufficient to
            recover an asset&rsquo;s carrying amount, the asset is written down to its fair value. Assets to be disposed of by sale, if any, are reported at the lower of the carrying amount or fair value less cost to sell.</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'ARIAL UNICODE MS'" align="justify"><b><i><font style="FONT-FAMILY: 'TIMES NEW ROMAN'">Accounting for Stock Options<br>
            &nbsp;</font></i></b></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt">The Company uses</font> <font style="FONT-SIZE: 10pt">stock options to attract, retain</font> <font style="FONT-SIZE: 10pt">and reward employees for long-term service.</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt">Effective as of January 1, 2006, the Company adopted &ldquo;Share Based Payment&rdquo; (&ldquo;SFASNo.123R&rdquo;). SFASNo.123R requires that the compensation cost relating to stock-based payment transactions be recognized in financial statements. That cost is measured based on the fair value of the equity or liability instruments issued.
            SFAS</font> <font style="FONT-SIZE: 10pt">No.</font> <font style="FONT-SIZE: 10pt">123R covers a wide range of stock-based compensation arrangements including stock options, restricted stock plans, performance-based awards, stock appreciation rights and employee stock purchase plans.</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000">In addition to the accounting standard that sets forth the financial reporting objectives and related accounting principles, SFAS</font> <font style="FONT-SIZE: 10pt; COLOR: #000000">No.</font> <font style="FONT-SIZE: 10pt; COLOR: #000000">123R includes an appendix of implementation guidance that provides expanded guidance
            on measuring the fair value of stock-based payment awards. In March 2005, the Securities and Exchange Commission issued Staff Accounting Bulletin No.&nbsp;107 (&ldquo;SAB</font> <font style="FONT-SIZE: 10pt; COLOR: #000000">No.</font> <font style="FONT-SIZE: 10pt; COLOR: #000000">107&rdquo;) relating to SFAS&nbsp;No.123R. The Company has applied the provisions of SAB</font> <font style="FONT-SIZE: 10pt; COLOR: #000000">No.</font> <font style="FONT-SIZE: 10pt; COLOR: #000000">107 in
            its adoption of SFAS&nbsp;No.123R.</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt">Since the Company adopted SFAS 123R, effective January 1, 2006, using the modified-prospective transition method, the Company is required to record compensation expense for all awards granted after the date of adoption and for the unvested portion of previously granted awards that remain outstanding as of the beginning of the period of
            adoption. The Company measures stock-based compensation cost using the Black-Scholes option pricing model.</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><b><font style="FONT-SIZE: 10pt; COLOR: #000000">Accounting for Income Taxes</font></b></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000">In establishing the provision for income taxes and deferred income tax assets and liabilities, and valuation allowances against deferred tax assets, the Company makes judgments and interpretations based on enacted tax laws, published tax guidance</font> <font style="FONT-SIZE: 10pt; COLOR: #000000">and estimates of future
            earnings. As ofMarch</font> <font style="FONT-SIZE: 10pt; COLOR: #000000">29, 2008, the Company had total net deferred tax assets of $2.9</font> <font style="FONT-SIZE: 10pt; COLOR: #000000">million, primarily representing the tax effect of an allowance for doubtful accounts.</font> <font style="FONT-SIZE: 10pt; COLOR: #000000">Realization of deferred tax assets is dependent upon the likelihood that future taxable income will be sufficient to realize these benefits over time, and
            the effectiveness of tax planning strategies in the relevant tax jurisdictions. In the event that actual results differ from these estimates and assessments, valuation allowances may be required.<br>
            &nbsp;<br>
            The Company adopted the provisions of FASB Interpretation No. 48, &ldquo;Accounting for Uncertainty in Income Taxes&rdquo; (&ldquo;FIN 48&rdquo;), on January 1, 2007. The Company recognized no material adjustments in the liability for unrecognized income tax benefits due to the adoption of FIN 48. The Company conducts its operations in multiple tax jurisdictions in the United States and Canada. With limited exceptions, the Company is no longer subject to audits by tax authorities
            for tax years prior to 2002. AtMarch</font> <font style="FONT-SIZE: 10pt; COLOR: #000000">29, 2008, the Company did not have any uncertain tax positions.</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000">The Company&rsquo;s future effective tax rates could be adversely affected by changes in the valuation of its deferred tax assets or liabilities or changes in tax laws or interpretations thereof. In addition, the Company is subject to the examination of its income tax returns by the Internal Revenue Service and other tax authorities. The
            Company regularly assesses the likelihood of adverse outcomes resulting from these examinations to determine the adequacy of its provision for income taxes.</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font size="2">25</font></p>
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            <p align="center"><b><font style="FONT-SIZE: 10pt">RCM TECHNOLOGIES, INC. AND SUBSIDIARIES</font></b></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b><font style="FONT-SIZE: 10pt">Management's Discussion and Analysis of</font></b></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; BORDER-BOTTOM: 0.5pt solid" align="center"><b><font style="FONT-SIZE: 10pt">Financial Condition and Results of Operations - (Continued)</font></b></p>

            <p></p>

            <p align="justify"><b><i><font style="FONT-SIZE: 10pt; COLOR: #000000">Accrued Bonuses</font></i></b></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000">The Company pays bonuses to certain executive management, field management and corporate employees based on, or after giving consideration to, a variety of financial performance measures. Executive management, field management</font> <font style="FONT-SIZE: 10pt; COLOR: #000000">and certain corporate employees&rsquo; bonuses are accrued
            throughout the year for payment during the first quarter of the following year, based in part upon anticipated annual results compared to annual budgets. In addition, the Company pays discretionary bonuses to certain employees, which are not related to budget performance. Variances in actual results versus budgeted amounts can have a significant impact on the calculations and therefore</font> <font style="FONT-SIZE: 10pt; COLOR: #000000">on</font>
            <font style="FONT-SIZE: 10pt; COLOR: #000000">the estimates of the required accruals. Accordingly, the actual earned bonuses may be materially different from the estimates used to determine the quarterly accruals.</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><b><i><font style="FONT-SIZE: 10pt; COLOR: #000000">Forward-looking Information</font></i></b></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000">The Company&rsquo;s growth prospects are influenced by broad economic trends. The pace of customer capital spending programs, new product launches and similar activities have a direct impact on the need for consulting and engineering services as well as temporary and permanent employees. When the U.S. and Canadian economies decline, the
            Company&rsquo;s operating performance could be adversely impacted. The Company believes that its fiscal discipline, strategic focus on targeted vertical markets and diversification of service offerings provides some insulation from adverse trends. However, declines in the economy could result in the need for future cost reductions or changes in strategy.</font></p>

            <p style="MARGIN-TOP: 5pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 5pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt">Additionally, changes in government regulations could result in prohibition or restriction of certain types of employment services or the imposition of new or additional employee benefits, licensing or tax requirements with respect to the provision of employment services that may reduce RCM&rsquo;s future earnings. There can be no
            assurance that RCM will be able to increase the fees charged to its clients in a timely manner and in a sufficient amount to cover increased costs as a result of any of the foregoing.<br>
            The employment services market is highly competitive with limited barriers to entry. RCM competes in global, national, regional</font> <font style="FONT-SIZE: 10pt">and local markets with numerous consulting, engineering and employment companies. Price competition in the industries the Company serves is significant, and pricing pressures from competitors and customers are increasing. RCM expects that the level of competition will remain high in the future, which could limit
            RCM&rsquo;s ability to maintain or increase its market share or profitability.</font></p>

            <p style="MARGIN-TOP: 5pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 5pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font size="2">26</font></p>
            <hr align="center" width="100%" noshade size="2">
            <br>
            <br>
            <br>
            <br>


            <p style="PAGE-BREAK-AFTER: always"></p>
            <!-- EEDocs PBEnd-->

            <p style="MARGIN-TOP: 5pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 5pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b><font style="FONT-SIZE: 10pt">RCM TECHNOLOGIES, INC. AND SUBSIDIARIES</font></b></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b><font style="FONT-SIZE: 10pt">Management's Discussion and Analysis of</font></b></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; BORDER-BOTTOM: 0.5pt solid" align="center"><b><font style="FONT-SIZE: 10pt">Financial Condition and Results of Operations - (Continued)</font></b></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><b><font style="FONT-SIZE: 10pt">Thirteen Weeks Ended March 29, 2008 Compared to Thirteen Weeks Ended March 31, 2007</font></b></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><a name="OLE_LINK2"></a><a name="OLE_LINK8">A summary of operating results for the fiscal periods ended March 29, 2008 and March 31, 2007 is as follows (in thousands, except for earnings per share data):</a></p>

            <table cellspacing="0" cellpadding="0" width="611" border="0">
                <tr bgcolor="#ccffff">
                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="284">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="13">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="122" colspan="3">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000">March 29, 2008</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="42">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="131" colspan="3">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000">March 31, 2007</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr>
                    <td style="PADDING-RIGHT: 0.01in; BORDER-TOP: medium none; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="284">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.01in; BORDER-TOP: medium none; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="13">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.01in; BORDER-TOP: medium none; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="56">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000">Amount</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.01in; BORDER-TOP: medium none; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="11">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.01in; BORDER-TOP: medium none; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="54">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000">% of Revenue</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.01in; BORDER-TOP: medium none; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="42">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.01in; BORDER-TOP: medium none; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="56">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000">Amount</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.01in; BORDER-TOP: medium none; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="21">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.01in; BORDER-TOP: medium none; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="53">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000">% of Revenue</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td style="PADDING-RIGHT: 0.01in; BORDER-TOP: medium none; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="284">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000">Revenues</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.01in; BORDER-TOP: medium none; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="13">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.01in; BORDER-TOP: medium none; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="56">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">$49,114</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.01in; BORDER-TOP: medium none; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="11">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.01in; BORDER-TOP: medium none; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="54">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">100.0</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.01in; BORDER-TOP: medium none; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="42">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.01in; BORDER-TOP: medium none; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="56">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">$54,493</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.01in; BORDER-TOP: medium none; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="21">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.01in; BORDER-TOP: medium none; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="53">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">100.0</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr>
                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="284">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000">Cost of services</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="13">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="56">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">36,816</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="11">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="54">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">75.0</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="42">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="56">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">42,116</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="21">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="53">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">77.3</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td style="PADDING-RIGHT: 0.01in; BORDER-TOP: medium none; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="284">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000">Gross profit</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.01in; BORDER-TOP: medium none; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="13">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.01in; BORDER-TOP: medium none; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="56">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">12,298</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.01in; BORDER-TOP: medium none; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="11">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.01in; BORDER-TOP: medium none; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="54">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">25.0</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.01in; BORDER-TOP: medium none; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="42">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.01in; BORDER-TOP: medium none; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="56">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">12,377</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.01in; BORDER-TOP: medium none; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="21">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.01in; BORDER-TOP: medium none; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="53">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">22.7</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr>
                    <td style="PADDING-RIGHT: 0.01in; BORDER-TOP: medium none; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="284">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.01in; BORDER-TOP: medium none; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="13">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.01in; BORDER-TOP: medium none; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="56">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.01in; BORDER-TOP: medium none; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="11">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.01in; BORDER-TOP: medium none; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="54">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.01in; BORDER-TOP: medium none; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="42">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.01in; BORDER-TOP: medium none; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="56">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.01in; BORDER-TOP: medium none; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="21">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.01in; BORDER-TOP: medium none; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="53">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="284">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000">Selling, general and administrative</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="13">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="56">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">10,485</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="11">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="54">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">21.4</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="42">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="56">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">10,094</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="21">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="53">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">18.6</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr>
                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="284">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000">Bad debt - note receivable</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="13">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="56">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">6,090</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="11">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="54">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">12.4</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="42">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="56">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="21">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="53">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="284">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000">Depreciation and amortization</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="13">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="56">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">361</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="11">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="54">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">34.5</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="42">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="56">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">354</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="21">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="53">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">0.6</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr>
                    <td style="PADDING-RIGHT: 0.01in; BORDER-TOP: medium none; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="284">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.01in; BORDER-TOP: medium none; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="13">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.01in; BORDER-TOP: medium none; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="56">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">16,936</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.01in; BORDER-TOP: medium none; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="11">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.01in; BORDER-TOP: medium none; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="54">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">34.5</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.01in; BORDER-TOP: medium none; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="42">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.01in; BORDER-TOP: medium none; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="56">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">10,448</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.01in; BORDER-TOP: medium none; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="21">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.01in; BORDER-TOP: medium none; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="53">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">19.2</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td style="PADDING-RIGHT: 0.01in; BORDER-TOP: medium none; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="284">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.01in; BORDER-TOP: medium none; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="13">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.01in; BORDER-TOP: medium none; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="56">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.01in; BORDER-TOP: medium none; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="11">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.01in; BORDER-TOP: medium none; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="54">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.01in; BORDER-TOP: medium none; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="42">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.01in; BORDER-TOP: medium none; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="56">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.01in; BORDER-TOP: medium none; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="21">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.01in; BORDER-TOP: medium none; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="53">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr>
                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="284">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000">Operating (loss) income</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="13">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="56">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">(4,638</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="11">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000">)</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="54">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">(9.4</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="42">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000">)</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="56">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">1,929</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="21">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="53">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">3.5</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="284">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000">Other income (expense)</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="13">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="56">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">27</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="11">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="54">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000">-</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="42">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="56">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">790</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="21">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="53">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">1.5</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr>
                    <td style="PADDING-RIGHT: 0.01in; BORDER-TOP: medium none; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="284">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.01in; BORDER-TOP: medium none; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="13">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.01in; BORDER-TOP: medium none; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="56">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.01in; BORDER-TOP: medium none; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="11">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.01in; BORDER-TOP: medium none; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="54">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.01in; BORDER-TOP: medium none; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="42">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.01in; BORDER-TOP: medium none; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="56">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.01in; BORDER-TOP: medium none; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="21">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.01in; BORDER-TOP: medium none; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="53">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="284">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000">(Loss) income before income taxes</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="13">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="56">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">(4,611</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="11">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000">)</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="54">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">(9.4</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="42">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000">)</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="56">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">2,719</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="21">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="53">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">5.0</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr>
                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="284">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000">Income taxes</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="13">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="56">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">(1,942</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="11">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000">)</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="54">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">(4.0</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="42">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000">)</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="56">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">1,148</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="21">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="53">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">2.1</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td style="PADDING-RIGHT: 0.01in; BORDER-TOP: medium none; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="284">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.01in; BORDER-TOP: medium none; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="13">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.01in; BORDER-TOP: medium none; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="56">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.01in; BORDER-TOP: medium none; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="11">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.01in; BORDER-TOP: medium none; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="54">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.01in; BORDER-TOP: medium none; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="42">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.01in; BORDER-TOP: medium none; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="56">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.01in; BORDER-TOP: medium none; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="21">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.01in; BORDER-TOP: medium none; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="53">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr>
                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 2pt double" valign="bottom" width="284">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000">Net (loss) income</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 2pt double" valign="bottom" width="13">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 2pt double" valign="bottom" width="56">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">($2,669</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 2pt double" valign="bottom" width="11">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000">)</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 2pt double" valign="bottom" width="54">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">(5.4</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 2pt double" valign="bottom" width="42">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000">)</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 2pt double" valign="bottom" width="56">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">$1,571</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 2pt double" valign="bottom" width="21">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 2pt double" valign="bottom" width="53">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">2.9</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td style="PADDING-RIGHT: 0.01in; BORDER-TOP: medium none; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="284">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.01in; BORDER-TOP: medium none; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="13">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.01in; BORDER-TOP: medium none; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="56">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.01in; BORDER-TOP: medium none; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="11">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.01in; BORDER-TOP: medium none; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="54">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.01in; BORDER-TOP: medium none; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="42">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.01in; BORDER-TOP: medium none; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="56">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.01in; BORDER-TOP: medium none; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="21">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.01in; BORDER-TOP: medium none; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="53">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr>
                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="284">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000">(Loss) earnings per share</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="13">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="56">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="11">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="54">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="42">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="56">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="21">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="53">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="284">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000">Basic:</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="13">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="56">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">($0.22</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="11">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000">)</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="54">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="42">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="56">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">$0.13</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="21">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="53">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="18">&nbsp;</td>
                </tr>

                <tr>
                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 2pt double" valign="bottom" width="284">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt; COLOR: #000000">Diluted:</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 2pt double" valign="bottom" width="13">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 2pt double" valign="bottom" width="56">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">($0.22</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 2pt double" valign="bottom" width="11">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000">)</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 2pt double" valign="bottom" width="54">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 2pt double" valign="bottom" width="42">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 2pt double" valign="bottom" width="56">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">$0.13</font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 2pt double" valign="bottom" width="21">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 2pt double" valign="bottom" width="53">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.01in; PADDING-LEFT: 0.01in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="18">&nbsp;</td>
                </tr>
            </table>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">The above summary is not a presentation of results of operations under accounting principles generally accepted in the United States of America and should not be considered in isolation or as an alternative to results of operations as an indication of the Company&rsquo;s performance.</p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt">The Company follows a 52/53 week fiscal reporting calendar ending on the Saturday closest to December 31. A 53-week year occurs periodically. The year to date reporting periods ended March 29, 2008 and March 31, 2007 consisted of thirteen weeks each.</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><b><i><font style="FONT-SIZE: 10pt">Revenues.</font></i></b> <font style="FONT-SIZE: 10pt">Revenuesdecreased 9.9%,</font> <font style="FONT-SIZE: 10pt">or$5.4 million, for the thirteen weeks ended March 29, 2008 as compared to the same period in the prior year (the &ldquo;comparable prior year period&rdquo;). Revenues decreased $2.6 million in the Information
            Technology (&ldquo;IT&rdquo;) segment, decreased $4.9 million in the Engineering segment, and increased $2.2 million in the Commercial segment. Management attributes the overall decrease to a weakening of the general</font> <font style="FONT-SIZE: 10pt">economy</font> <font style="FONT-SIZE: 10pt">and the loss of an engineering client, which generated $5.8 revenue in the 2007 period as compared to $-0- in the 2008 period. Management expects revenues for the remainder of fiscal 2008
            to remain generally consistent on a prorated basis with the revenues for the thirteen weeks ended March 29, 2008. Revenues that were attributable to acquisitions which occurred in the IT segment since March 31, 2007, were not included in the comparable prior year period, were approximately $1.5 million.</font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font size="2">27</font></p>
            <hr align="center" width="100%" noshade size="2">
            <br>
            <br>

            <p style="PAGE-BREAK-AFTER: always"></p>
            <!-- EEDocs PBEnd-->

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b><font style="FONT-SIZE: 10pt">RCM TECHNOLOGIES, INC. AND SUBSIDIARIES</font></b></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b><font style="FONT-SIZE: 10pt">Management's Discussion and Analysis of</font></b></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; BORDER-BOTTOM: 0.5pt solid" align="center"><b><font style="FONT-SIZE: 10pt">Financial Condition and Results of Operations - (Continued)</font></b></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><b><font style="FONT-SIZE: 10pt">Thirteen Weeks Ended March 29, 2008 Compared to Thirteen Weeks Ended March 31, 2007 - (Continued)</font></b><br>
            <b><i><font style="FONT-SIZE: 10pt">Cost of Services.</font></i></b> <font style="FONT-SIZE: 10pt">Cost of services decreased 12.6%, or $5.3 million, for the thirteen weeks ended March 29, 2008 as compared to the comparable prior year period. This decrease was primarily due to the decrease in revenues. Cost of services as a percentage of revenues decreased to 75.0% for the thirteen weeks ended March 29, 2008 from 77.3% for the comparable prior year period. This decrease was
            primarily attributable to decreased revenues in the Engineering segment, which had lower gross margins. Management anticipates the ratio of cost of sales to revenues for the remainder of fiscal 2008 to remain comparable to the thirteen weeks ended March 29, 2008.</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><b><i><font style="FONT-SIZE: 10pt">Selling, General and Administrative.</font></i></b> <font style="FONT-SIZE: 10pt">Selling, general and administrative (&ldquo;SGA&rdquo;) expenses increased 3.9%, or $392,000, for the thirteen weeks ended March 29, 2008 as compared to the comparable prior year period. As a percentage of revenues, SGA expenses were 21.4% for the thirteen weeks ended
            March 29, 2008 as compared to 18.6% for the comparable prior year period. This percentage increase was primarily attributable to the SGA expenses incurred in connection with an acquisition effective March 1, 2008. Management expects SGA expenses for the remainder of fiscal 2008 to remain generally consistent with the SGA expenses, adjusted for eight weeks of additional SGA expenses from the aforementioned acquisition, for the thirteen weeks ended March 29, 2008.</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><b><i><font style="FONT-SIZE: 10pt">Bad Debt -</font></i></b><b><i><font style="FONT-SIZE: 10pt">Note Receivable.</font></i></b><font style="FONT-SIZE: 10pt">On</font> <font style="FONT-SIZE: 10pt">February 26, 2008, the Company accepted a note promissory note</font> <font style="FONT-SIZE: 10pt">from a customer for $7.5</font> <font style="FONT-SIZE: 10pt">million</font>
            <font style="FONT-SIZE: 10pt">per agreement which includes interest in payment of a like amount of accounts receivable from that customer. Of that amount, the note provides that $3.1</font> <font style="FONT-SIZE: 10pt">million is payable within12 months and the remaining $4.4</font> <font style="FONT-SIZE: 10pt">million is payable in 36 monthly installments of $152,000, including principal and interest at 6% per annum through July 2011. The customer paid $1.2 million through March
            29, 2008.</font> <font style="FONT-SIZE: 10pt">The note receivable is collateralized by a second position on all of the customer&rsquo;s accounts receivable as well as the personal guarantees of all its officers. On May 1, 2008, the customer defaulted on itsMay 1, 2008 installmentpayment and thecollectability of this note receivable</font> <font style="FONT-SIZE: 10pt">is uncertain.Therefore, the Company recorded</font> <font style="FONT-SIZE: 10pt">a $6.1 millionreserve to this
            doubtful account</font> <font style="FONT-SIZE: 10pt">for the thirteen weeks ended March 29, 2008.</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><b><i><font style="FONT-SIZE: 10pt">Depreciation and Amortization.</font></i></b> <font style="FONT-SIZE: 10pt">Depreciation and amortization were essentially unchanged for thethirteen weeks</font> <font style="FONT-SIZE: 10pt">endedMarch 29, 2008</font> <font style="FONT-SIZE: 10pt">as compared to the comparable prior year period.</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><b><i><font style="FONT-SIZE: 10pt">Other Income (Expense).</font></i></b> <font style="FONT-SIZE: 10pt">Other income (expense) consists of interest income, net of interest expense and gains and losses on foreign currency transactions and, in 2007, the proceeds from a legal settlement. For the thirteen weeks ended March 29, 2008, actual interest expense of $14,000 was offset by $40,000
            of interest income, which was earned from short-term money market deposits. Interest income, net increased $34,000 for the thirteen weeks ended March 29, 2008 as compared to the comparable prior year period. This increase was primarily due to decreased borrowing levels, which were</font> <font style="FONT-SIZE: 10pt">offset by an increase in weighted average interest rates on borrowed funds. Gains on foreign currency transactions increased $3,000 in the thirteen weeks ended March
            29, 2008 as compared to the comparable prior year period. This increase was attributable to the favorable exchange rates realized during the 2008 period. The proceeds from the legal settlement in 2007 were realized when the Company reached a settlement with one of the law firm defendants resulting in the recovery of $800,000 (see footnote 15</font> <font style="FONT-SIZE: 10pt">to the consolidated financial statements).</font><br>
            &nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><b><i><font style="FONT-SIZE: 10pt">Income Tax.</font></i></b> <font style="FONT-SIZE: 10pt">Income tax expense decreased269.3%, or $3.1million,</font> <font style="FONT-SIZE: 10pt">for thethirteen weeks</font> <font style="FONT-SIZE: 10pt">endedMarch 29, 2008</font> <font style="FONT-SIZE: 10pt">as compared to the comparable prior year period. This decrease was principally
            attributable to a decrease in income before taxes, which included a $6.1 million bad debt expense on a note receivable for the thirteen weeks ended March 29, 2008 as well as an increase in tax deductible goodwill amortization of approximately $40,000.</font> <font style="FONT-SIZE: 10pt">The effective tax rate wasa credit of 42.1% for thethirteen weeks</font> <font style="FONT-SIZE: 10pt">ended March 29, 2008</font> <font style="FONT-SIZE: 10pt">as compared to 42.2% in the
            comparable prior year period. Without the bad debt expense, the effective tax rate would have been 33.4%.</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font size="2">28</font></p>
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            <p align="center"><font size="2"><strong>RCM TECHNOLOGIES, INC. AND SUBSIDIARIES</strong></font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b><font style="FONT-SIZE: 10pt">Management's Discussion and Analysis of</font></b></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; BORDER-BOTTOM: 0.5pt solid" align="center"><b><font style="FONT-SIZE: 10pt">Financial Condition and Results of Operations - (Continued)</font></b></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><b><font style="FONT-SIZE: 10pt">Thirteen Weeks Ended March 29, 2008 Compared to Thirteen Weeks Ended March 31, 2007</font></b> <b><font style="FONT-SIZE: 10pt">- (Continued)</font></b></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><b><font style="FONT-SIZE: 10pt">Seg</font></b><b><font style="FONT-SIZE: 10pt">ment Discussion (See Footnote 14</font></b><b><font style="FONT-SIZE: 10pt">)</font></b></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><b><font style="FONT-SIZE: 10pt">Information Technology</font></b><br>
            &nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt">IT revenues of $22.4</font> <font style="FONT-SIZE: 10pt">million in 2008 decreased $2.6</font> <font style="FONT-SIZE: 10pt">million, or 10.4%, compared to 2007.The decrease in revenue was attributable to the weakness in the economy anddemand for the Company&rsquo;s IT services.</font> <font style="FONT-SIZE: 10pt">The IT segment EBITDA was $460,000,
            or25.4% of the overall EBITDA for&nbsp;2008, as compared to $1.5</font> <font style="FONT-SIZE: 10pt">million, or 65.4% of the overall EBITDA</font> <font style="FONT-SIZE: 10pt">for 2007.</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><b><font style="FONT-SIZE: 10pt">Engineering</font></b></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt">Engineering revenues of $14.0</font> <font style="FONT-SIZE: 10pt">million in 2008 decreased $4.9</font> <font style="FONT-SIZE: 10pt">million, or 26.0%, compared to2007. The decrease inrevenue was attributable to</font> <font style="FONT-SIZE: 10pt">a weakening of the general</font> <font style="FONT-SIZE: 10pt">economy</font>
            <font style="FONT-SIZE: 10pt">and the loss of an engineering client that generated $5.8 revenue in the 2007 period. Management expects the Engineering revenue levels to remain relatively consistent over the next 12 months.</font> <font style="FONT-SIZE: 10pt">The Engineering segment EBITDA was $569,000, or 31.4% of the overall EBITDA for 2008, as compared to $670,000, or 29.3% of the overall EBITDA for 2007.</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><b><font style="FONT-SIZE: 10pt">Commercial</font></b></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt">Commercial revenues of $12.6</font> <font style="FONT-SIZE: 10pt">million in 2008 increased $2.2 million, or 20.7%,</font> <font style="FONT-SIZE: 10pt">compared to2007.The increase in revenues was principally attributable to increased revenues in the Company&rsquo;s Healthcare business unit.The Commercial segment EBITDA was $784,000, or 43.2% of the
            overall EBITDA for 2008,</font> <font style="FONT-SIZE: 10pt">as compared to $119,000, or5.2% of the overall EBITDA for 2007.</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font size="2">29</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"></p>
            <hr align="center" width="100%" noshade size="2">
            <br>
            <br>

            <p style="PAGE-BREAK-AFTER: always"></p>
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            <p style="MARGIN-TOP: 0pt; FONT-WEIGHT: bold; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; TEXT-DECORATION: underline" align="center"><b>RCM TECHNOLOGIES, INC. AND SUBSIDIARIES</b></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b><font style="FONT-SIZE: 10pt">Management's Discussion and Analysis of</font></b></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; BORDER-BOTTOM: 0.5pt solid" align="center"><b><font style="FONT-SIZE: 10pt">Financial Condition and Results of Operations - (Continued)</font></b></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><b><font style="FONT-SIZE: 10pt">Liquidity and Capital Resources</font></b></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt">The following table summarizes the major captions from the Company&rsquo;s Consolidated Statements of Cash Flows:<br>
            &nbsp;</font></p>

            <table cellspacing="0" cellpadding="0" width="600" align="center" border="0">
                <tr bgcolor="#ccffff">
                    <td valign="bottom" width="144">&nbsp;</td>

                    <td valign="bottom" width="18">&nbsp;</td>

                    <td valign="bottom" width="253" colspan="3">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Thirteen Weeks</font></p>
                    </td>

                    <td valign="bottom" width="19">&nbsp;</td>
                </tr>

                <tr>
                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="144">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">(In thousands)</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="120">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt">March 29, 2008</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="115">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt">March 31, 2007</font></p>
                    </td>

                    <td valign="bottom" width="19">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td style="BORDER-TOP: medium none" valign="bottom" width="144">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="120">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="18">&nbsp;</td>

                    <td style="BORDER-TOP: medium none" valign="bottom" width="115">&nbsp;</td>

                    <td valign="bottom" width="19">&nbsp;</td>
                </tr>

                <tr>
                    <td valign="bottom" width="144">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt">Operating Activities</font></p>
                    </td>

                    <td valign="bottom" width="18">&nbsp;</td>

                    <td valign="bottom" width="120">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">($6,459)</font></p>
                    </td>

                    <td valign="bottom" width="18">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>
                    </td>

                    <td valign="bottom" width="115">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; $251</font></p>
                    </td>

                    <td valign="bottom" width="19">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td valign="bottom" width="144">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt">Investing Activities</font></p>
                    </td>

                    <td valign="bottom" width="18">&nbsp;</td>

                    <td valign="bottom" width="120">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">($5,546)</font></p>
                    </td>

                    <td valign="bottom" width="18">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>
                    </td>

                    <td valign="bottom" width="115">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">($227)</font></p>
                    </td>

                    <td valign="bottom" width="19">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>
                    </td>
                </tr>

                <tr>
                    <td valign="bottom" width="144">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt">Financing Activities</font></p>
                    </td>

                    <td valign="bottom" width="18">&nbsp;</td>

                    <td valign="bottom" width="120">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; $5,000</font></p>
                    </td>

                    <td valign="bottom" width="18">&nbsp;</td>

                    <td valign="bottom" width="115">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; $338</font></p>
                    </td>

                    <td valign="bottom" width="19">&nbsp;</td>
                </tr>
            </table>
            <br>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><b><i><font style="FONT-SIZE: 10pt">Operating Activities</font></i></b></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">Operating activities used $6.5 million of cash for the thirteen weeks ended March 29, 2008 as compared to $251,000 for the comparable 2007 period. The decrease in cash provided by operating activities was primarily attributable to an increase in accounts receivable, an increase in deferred tax assets, a decrease in accounts payable and accrued expenses, accrued
            compensation and income taxes payable. These changes were offset by an increase in provision for doubtful accounts and note receivable, an increase in payroll and withheld taxes, and a decrease in prepaid expenses and other current assets. The Company continues to institute enhanced controls and standardization over its receivables collection and disbursement processes.</p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><b><i><font style="FONT-SIZE: 10pt">Investing Activities</font></i></b></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt">Investing activities used $5.5</font> <font style="FONT-SIZE: 10pt">million for the thirteen weeks ended March 29, 2008 as compared to $228,000 for the comparable prior year period. The increase in the use of cash for investing activities for 2008</font> <font style="FONT-SIZE: 10pt">as compared to the comparable 2007</font>
            <font style="FONT-SIZE: 10pt">periodwas primarily attributable to increases in expenditures for property and equipment and in cash used for acquisitions.</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><b><i><font style="FONT-SIZE: 10pt">Financing Activities</font></i></b></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">In 2008, financing activities principally consisted of the proceeds from borrowing from the line of credit to finance the acquisition of NuSoft Solutions, Inc. (See footnote 5 to the financial statements). In 2007, financing activities principally consisted of the exercise of stock options with an aggregate exercise price of $376,000.</p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">The Company and its subsidiaries are party to a loan agreement with Citizens Bank of Pennsylvania, administrative agent for a syndicate of banks, which provides for a $25 million revolving credit facility and includes a sub-limit of $5.0 million for letters of credit (the &ldquo;Revolving Credit Facility&rdquo;). Borrowings under the Revolving Credit Facility bear
            interest at one of two alternative rates, as selected by the Company at each incremental borrowing. These alternatives are: (i) LIBOR (London Interbank Offered Rate), plus applicable margin, or (ii) the agent bank's prime rate.</p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">All borrowings under the Revolving Credit Facility are collateralized by all of the assets of the Company and its subsidiaries and a pledge of the stock of its subsidiaries. The Revolving Credit Facility also contains various financial and non-financial covenants, such as restrictions on the Company&rsquo;s ability to pay dividends.</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">30</p>
            <hr align="center" width="100%" noshade size="2">
            <br>
            <br>
            <br>
            <br>

            <p align="center"><b><font size="2">RCM TECHNOLOGIES, INC. AND SUBSIDIARIES</font></b></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b><font style="FONT-SIZE: 10pt">Management's Discussion and Analysis of</font></b></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; BORDER-BOTTOM: 0.5pt solid" align="center"><b><font style="FONT-SIZE: 10pt; COLOR: #000000">Financial Condition and Results of Operations - (Continued)</font></b></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><b><font style="FONT-SIZE: 10pt">Liquidity and Capital Resources - (Continued)</font></b><br>
            &nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><b><i><font style="FONT-SIZE: 10pt">Financing Activiti</font></i></b><b><i><font style="FONT-SIZE: 10pt">e</font></i></b><b><i><font style="FONT-SIZE: 10pt">s</font></i></b> <b><i><font style="FONT-SIZE: 10pt">- (Continued)</font></i></b></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt">The Revolving Credit Facility expires in August 2011. The weighted average interest rates, which include unused line fees,</font> <font style="FONT-SIZE: 10pt">under the Revolving Credit Facility for thethirteen weeks</font> <font style="FONT-SIZE: 10pt">endedMarch 29, 2008</font> <font style="FONT-SIZE: 10pt">and March 31, 2007</font>
            <font style="FONT-SIZE: 10pt">were4.6% and13.3%, respectively.</font> <font style="FONT-SIZE: 10pt">The weighted average interest rate for the 2007 period was disproportionately high in relation to the interest expense incurred because of the inclusion of unused line fees of $7,600. Duringthethirteen weeks</font> <font style="FONT-SIZE: 10pt">ended March 29, 2008</font> <font style="FONT-SIZE: 10pt">andMarch 31, 2007, the Company&rsquo;s outstanding borrowings ranged from $-0- to
            $5.0 million and $-0- million</font> <font style="FONT-SIZE: 10pt">to $1.5 million, respectively. At March 29, 2008 and December 29, 2007, there were $5.0 million and -0- outstanding borrowings under this facility, respectively. At March 29, 2008, there were</font> <font style="FONT-SIZE: 10pt">letters</font> <font style="FONT-SIZE: 10pt">of credit outstanding for $1.6 million.</font> <font style="FONT-SIZE: 10pt">At March 29, 2008, the Company had availability for additional
            borrowings under the Revolving Credit Facility of $18.4</font> <font style="FONT-SIZE: 10pt">million.</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">The Company anticipates that its primary uses of capital in future periods will be for working capital purposes. Funding for any long-term and short-term capital requirements as well as future acquisitions will be derived from one or more of the Revolving Credit Facility, funds generated through operations or future financing transactions. The Company is subject to
            legal proceedings and claims that arise from time to time in the ordinary course of its business, which may or may not be covered by insurance. Were an unfavorable final outcome to occur, there exists the possibility of a material adverse impact on our financial position, liquidity and the results of operations for the period in which the effect becomes reasonably estimable.</p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">The Company's business strategy is to achieve growth both internally through operations and externally through strategic acquisitions. The Company from time to time engages in discussions with potential acquisition candidates. As the size of the Company and its financial resources increase, however, acquisition opportunities requiring significant commitments of capital
            may arise. In order to pursue such opportunities, the Company may be required to incur debt or issue potentially dilutive securities in the future. No assurance can be given as to the Company&rsquo;s future acquisition and expansion opportunities or how such opportunities will be financed.</p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt">The Company does not currently have material commitments for capital expenditures and does not currently anticipate entering into any such commitments during the next 12 months. The Company's current commitments consist primarily of lease obligations for office space</font> <font style="FONT-SIZE: 10pt">and potential deferred consideration
            payments (see note 5 to the financial statements). The Company believes that its capital resources are sufficient to meet its present obligations and those to be incurred in the normal course of business for the next 12 months.</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt">At March 29, 2008, the Company had a deferred tax asset totaling$2.9</font> <font style="FONT-SIZE: 10pt">million, primarily representing the tax effect of an allowance for doubtful accounts. The Company expects to utilize the deferred tax asset during the 12 months ending March 28, 2009 by offsettingthe related tax benefits of the
            asset</font> <font style="FONT-SIZE: 10pt">against tax liabilities incurred from forecasted taxable income.</font></p>

            <p></p>

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            <p align="center"><font size="2">31</font></p>
            <hr align="center" width="100%" noshade size="2">
            <br>
            <br>
            <br>

            <p style="PAGE-BREAK-AFTER: always"></p>
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            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.2in; TEXT-INDENT: -17px" align="center"><b><font style="FONT-SIZE: 10pt">RCM TECHNOLOGIES, INC. AND SUBSIDIARIES</font></b></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b><font style="FONT-SIZE: 10pt">Management's Discussion and Analysis of</font></b></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; BORDER-BOTTOM: 0.5pt solid" align="center"><b><font style="FONT-SIZE: 10pt">Financial Condition and Results of Operations - (Continued)</font></b></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><b><font style="FONT-SIZE: 10pt">Liquidity and Capital Resources - (Continued)</font></b><br>
            &nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><b><i><font style="FONT-SIZE: 10pt">Financing Activiti</font></i></b><b><i><font style="FONT-SIZE: 10pt">e</font></i></b><b><i><font style="FONT-SIZE: 10pt">s</font></i></b> <b><i><font style="FONT-SIZE: 10pt">- (Continued)</font></i></b></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">Summarized below are the Company&rsquo;s obligations and commitments to make future payments under lease agreements and debt obligations as of March 29, 2008 (in thousands):<br>
            &nbsp;</p>

            <p></p>

            <table cellspacing="0" cellpadding="0" width="600" border="0">
                <tr bgcolor="#ccffff">
                    <td style="PADDING-RIGHT: 0.05in; PADDING-LEFT: 0.05in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="196">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.05in; PADDING-LEFT: 0.05in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="12">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.05in; PADDING-LEFT: 0.05in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="72">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.05in; PADDING-LEFT: 0.05in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="12">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.05in; PADDING-LEFT: 0.05in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="312" colspan="7">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">Payments Due by Period</p>
                    </td>
                </tr>

                <tr>
                    <td style="PADDING-RIGHT: 0.05in; BORDER-TOP: medium none; PADDING-LEFT: 0.05in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="196">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.05in; BORDER-TOP: medium none; PADDING-LEFT: 0.05in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="12">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.05in; BORDER-TOP: medium none; PADDING-LEFT: 0.05in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="72">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">Total</p>
                    </td>

                    <td style="PADDING-RIGHT: 0.05in; BORDER-TOP: medium none; PADDING-LEFT: 0.05in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="12">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.05in; BORDER-TOP: medium none; PADDING-LEFT: 0.05in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="72">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">Less Than<br>
                        1 Year</p>
                    </td>

                    <td style="PADDING-RIGHT: 0.05in; BORDER-TOP: medium none; PADDING-LEFT: 0.05in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="12">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.05in; BORDER-TOP: medium none; PADDING-LEFT: 0.05in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="66">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">1-3 Years</p>
                    </td>

                    <td style="PADDING-RIGHT: 0.05in; BORDER-TOP: medium none; PADDING-LEFT: 0.05in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="12">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.05in; BORDER-TOP: medium none; PADDING-LEFT: 0.05in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="66">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">3-5 Years</p>
                    </td>

                    <td style="PADDING-RIGHT: 0.05in; BORDER-TOP: medium none; PADDING-LEFT: 0.05in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="12">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.05in; BORDER-TOP: medium none; PADDING-LEFT: 0.05in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="72">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">More Than<br>
                        5 Years</p>
                    </td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td style="PADDING-RIGHT: 0.05in; BORDER-TOP: medium none; PADDING-LEFT: 0.05in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="196">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.05in; BORDER-TOP: medium none; PADDING-LEFT: 0.05in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="12">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.05in; BORDER-TOP: medium none; PADDING-LEFT: 0.05in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="72">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.05in; BORDER-TOP: medium none; PADDING-LEFT: 0.05in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="12">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.05in; BORDER-TOP: medium none; PADDING-LEFT: 0.05in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="72">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.05in; BORDER-TOP: medium none; PADDING-LEFT: 0.05in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="12">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.05in; BORDER-TOP: medium none; PADDING-LEFT: 0.05in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="66">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.05in; BORDER-TOP: medium none; PADDING-LEFT: 0.05in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="12">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.05in; BORDER-TOP: medium none; PADDING-LEFT: 0.05in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="66">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.05in; BORDER-TOP: medium none; PADDING-LEFT: 0.05in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="12">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.05in; BORDER-TOP: medium none; PADDING-LEFT: 0.05in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="72">&nbsp;</td>
                </tr>

                <tr>
                    <td style="PADDING-RIGHT: 0.05in; PADDING-LEFT: 0.05in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="196">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">Long-Term Debt Obligations <sup>(1)</sup></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.05in; PADDING-LEFT: 0.05in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="12">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.05in; PADDING-LEFT: 0.05in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="72">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">&nbsp;</p>

                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">$5,000</p>
                    </td>

                    <td style="PADDING-RIGHT: 0.05in; PADDING-LEFT: 0.05in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="12">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.05in; PADDING-LEFT: 0.05in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="72">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">&nbsp;</p>

                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">$5,000</p>
                    </td>

                    <td style="PADDING-RIGHT: 0.05in; PADDING-LEFT: 0.05in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="12">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.05in; PADDING-LEFT: 0.05in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="66">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.05in; PADDING-LEFT: 0.05in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="12">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.05in; PADDING-LEFT: 0.05in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="66">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.05in; PADDING-LEFT: 0.05in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="12">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.05in; PADDING-LEFT: 0.05in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="72">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"></p>
                    </td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td style="PADDING-RIGHT: 0.05in; PADDING-LEFT: 0.05in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="196">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">Operating Lease Obligations</p>
                    </td>

                    <td style="PADDING-RIGHT: 0.05in; PADDING-LEFT: 0.05in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="12">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.05in; PADDING-LEFT: 0.05in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="72">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">&nbsp;</p>

                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">9,429</p>
                    </td>

                    <td style="PADDING-RIGHT: 0.05in; PADDING-LEFT: 0.05in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="12">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.05in; PADDING-LEFT: 0.05in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="72">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">&nbsp;</p>

                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">3,214</p>
                    </td>

                    <td style="PADDING-RIGHT: 0.05in; PADDING-LEFT: 0.05in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="12">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.05in; PADDING-LEFT: 0.05in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="66">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">&nbsp;</p>

                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">$4,312</p>
                    </td>

                    <td style="PADDING-RIGHT: 0.05in; PADDING-LEFT: 0.05in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="12">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.05in; PADDING-LEFT: 0.05in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="66">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">&nbsp;</p>

                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">$1,903</p>
                    </td>

                    <td style="PADDING-RIGHT: 0.05in; PADDING-LEFT: 0.05in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="12">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.05in; PADDING-LEFT: 0.05in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="72">&nbsp;</td>
                </tr>

                <tr>
                    <td style="PADDING-RIGHT: 0.05in; BORDER-TOP: medium none; PADDING-LEFT: 0.05in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="196">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.05in; BORDER-TOP: medium none; PADDING-LEFT: 0.05in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="12">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.05in; BORDER-TOP: medium none; PADDING-LEFT: 0.05in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="72">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.05in; BORDER-TOP: medium none; PADDING-LEFT: 0.05in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="12">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.05in; BORDER-TOP: medium none; PADDING-LEFT: 0.05in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="72">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.05in; BORDER-TOP: medium none; PADDING-LEFT: 0.05in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="12">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.05in; BORDER-TOP: medium none; PADDING-LEFT: 0.05in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="66">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.05in; BORDER-TOP: medium none; PADDING-LEFT: 0.05in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="12">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.05in; BORDER-TOP: medium none; PADDING-LEFT: 0.05in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="66">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.05in; BORDER-TOP: medium none; PADDING-LEFT: 0.05in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="12">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.05in; BORDER-TOP: medium none; PADDING-LEFT: 0.05in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="72">&nbsp;</td>
                </tr>

                <tr bgcolor="#ccffff">
                    <td style="PADDING-RIGHT: 0.05in; PADDING-LEFT: 0.05in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 2pt double" valign="bottom" width="196">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">Total</p>
                    </td>

                    <td style="PADDING-RIGHT: 0.05in; PADDING-LEFT: 0.05in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 2pt double" valign="bottom" width="12">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.05in; PADDING-LEFT: 0.05in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 2pt double" valign="bottom" width="72">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">$13,429</p>
                    </td>

                    <td style="PADDING-RIGHT: 0.05in; PADDING-LEFT: 0.05in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 2pt double" valign="bottom" width="12">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.05in; PADDING-LEFT: 0.05in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 2pt double" valign="bottom" width="72">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">$8,214</p>
                    </td>

                    <td style="PADDING-RIGHT: 0.05in; PADDING-LEFT: 0.05in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 2pt double" valign="bottom" width="12">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.05in; PADDING-LEFT: 0.05in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 2pt double" valign="bottom" width="66">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">$4,312</p>
                    </td>

                    <td style="PADDING-RIGHT: 0.05in; PADDING-LEFT: 0.05in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 2pt double" valign="bottom" width="12">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.05in; PADDING-LEFT: 0.05in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 2pt double" valign="bottom" width="66">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">$1,903</p>
                    </td>

                    <td style="PADDING-RIGHT: 0.05in; PADDING-LEFT: 0.05in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 2pt double" valign="bottom" width="12">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.05in; PADDING-LEFT: 0.05in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: black 2pt double" valign="bottom" width="72">&nbsp;</td>
                </tr>
            </table>
            <br>
            <br>

            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><sup><font style="FONT-SIZE: 10pt">(1)</font></sup><font style="FONT-SIZE: 10pt">The Revolving Credit Facility is for $25.0 million and includes a sub-limit of $5.0 million for letters of credit. The agreement expires in August 2011. AtMarch</font> <font style="FONT-SIZE: 10pt">29, 2008,</font> <font style="FONT-SIZE: 10pt">there was $5.0 million outstanding under the
            line of credit and</font> <font style="FONT-SIZE: 10pt">there were outstanding letters of credit for$1.6</font> <font style="FONT-SIZE: 10pt">million.</font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font size="2">32</font></p>
            <hr align="center" width="100%" noshade size="2">
            <br>
            <br>

            <p style="PAGE-BREAK-AFTER: always"></p>
            <!-- EEDocs PBEnd-->

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.2in; TEXT-INDENT: -17px" align="center"><b><font style="FONT-SIZE: 10pt">RCM TECHNOLOGIES, INC. AND SUBSIDIARIES</font></b></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b><font style="FONT-SIZE: 10pt">Management's Discussion and Analysis of</font></b></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; BORDER-BOTTOM: 0.5pt solid" align="center"><b><font style="FONT-SIZE: 10pt">Financial Condition and Results of Operations - (Continued)</font></b></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-WEIGHT: bold; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><b>ITEM 3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK</b></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">The Company&rsquo;s exposure to market risk for changes in interest rates relates primarily to the Company&rsquo;s investment portfolio and debt instruments, which primarily consist of its Revolving Credit Facility. The Company does not have any derivative financial instruments in its portfolio. The Company places its investments in instruments that meet high credit
            quality standards. The Company is adverse to principal loss and ensures the safety and preservation of its invested funds by limiting default risk, market risk and reinvestment risk. As of March 29, 2008, the Company&rsquo;s investments consisted of cash and money market funds. The Company does not use interest rate derivative instruments to manage its exposure to interest rate changes. Presently the impact of a 10% (approximately 90 basis points) increase in interest rates on its
            variable debt (using an incremental borrowing rate) would have a relatively nominal impact on the Company&rsquo;s results of operations. The Company does not expect any material loss with respect to its investment portfolio.</p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><b>ITEM 4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CONTROLS AND PROCEDURES</b></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt">The Company&rsquo;s management, under the supervision and with the participation of the Company&rsquo;s Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of the Company&rsquo;s disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e) under the Exchange Act) as of the end of the period
            covered by this report. Based upon that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that those disclosure controls and procedures as of the end of the period covered by this report were functioning effectively to provide reasonable assurance that information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the
            SEC&rsquo;s rules and forms and is accumulated and communicated to the Company&rsquo;s management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate, to allow timely decisions regarding required disclosure.</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt">A controls system, no matter how well designed and operated, cannot provide absolute assurance that the objectives of the controls system are met, and no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within a company have been detected.<br>
            &nbsp;<br>
            There have been no changes in the Company&rsquo;s internal control over financial reporting that occurred during the Company&rsquo;s most recent fiscal quarter and that have materially affected, or are reasonably likely to materially affect, the Company&rsquo;s internal control over financial reporting.</font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font size="2">33</font></p>
            <hr align="center" width="100%" noshade size="2">
            <br>
            <br>

            <p style="PAGE-BREAK-AFTER: always"></p>
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            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b><font style="FONT-SIZE: 10pt">RCM TECHNOLOGIES, INC. AND SUBSIDIARIES</font></b></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.6in; TEXT-INDENT: -39px" align="center"><b><font style="FONT-SIZE: 10pt">PART II</font></b></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.6in; TEXT-INDENT: -39px; BORDER-BOTTOM: 0.5pt solid" align="center"><b><font style="FONT-SIZE: 10pt">OTHER INFORMATION</font></b></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.6in; TEXT-INDENT: -45px" align="left"><b><font style="FONT-SIZE: 10pt">ITEM 1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;LEGAL PROCEEDINGS</font></b></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt">See discussion of Legal Proceedings in Note15</font> <font style="FONT-SIZE: 10pt">to the consolidated financial statements included in Item 1 of this report.<br>
            &nbsp;</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><b><font style="FONT-SIZE: 10pt">ITEM 1</font></b><b><font style="FONT-SIZE: 10pt">A. RISK FACTORS</font></b></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">There have been no material changes from the risk factors disclosed in the &ldquo;Risk Factors&rdquo; section (Item 1A) of the Company&rsquo;s Annual Report on Form 10-K for the year ended December 29, 2007.</font></p>

            <p>&nbsp;</p>

            <p>&nbsp;</p>

            <p align="center"><font style="FONT-SIZE: 10pt">34</font></p>
            <hr align="center" width="100%" noshade size="2">
            <br>
            <br>

            <p style="PAGE-BREAK-AFTER: always"></p>
            <!-- EEDocs PBEnd-->

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b><font style="FONT-SIZE: 10pt">RCM TECHNOLOGIES, INC. AND SUBSIDIARIES</font></b></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.6in; TEXT-INDENT: -39px; BORDER-BOTTOM: 0.5pt solid" align="justify"><b><font style="FONT-SIZE: 10pt">ITEM 6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;EXHIBITS</font></b></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 1in; TEXT-INDENT: -72px" align="justify"><font style="FONT-SIZE: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(10) (a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Repayment and Security Agreement, dated February 26, 2008, by and between RCM Technologies, Inc. and Ideal Interiors, Inc., Creative Interiors Plus, LLC, DJJ, Inc., Ideal Structural Security, Inc., Frank S. Degrande, Ricardo R. Rivera, Cadil Rodriguez and Louis Serrante.</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 1in; TEXT-INDENT: -72px" align="justify"><font style="FONT-SIZE: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(10) (b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;First Amendment, dated February 29, 2008, to Repayment and Security Agreement, dated February 26, 2008, by and between RCM Technologies, Inc. and Ideal Interiors, Inc., Creative Interiors Plus, LLC, DJJ, Inc., Ideal Structural Security, Inc., Frank S. Degrande, Ricardo R. Rivera, Cadil
            Rodriguez and Louis Serrante.</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 1in; TEXT-INDENT: -72px" align="justify"><font style="FONT-SIZE: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(10) (c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subordination and Intercreditor Agreement, dated February 29, 2008, by and between RCM Technologies, Inc., RCM Technologies Services Company, Inc. and Prestige Capital Corporation and acknowledged and consented to by Ideal Interiors.</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 1in; TEXT-INDENT: -72px" align="justify"><font style="FONT-SIZE: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(10) (d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Promissory Note, dated February 26, 2008 from Ideal Interiors, Inc., Creative Interiors Plus, LLC, DJJ, Inc. and Ideal Structural Security, Inc..</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 1in; TEXT-INDENT: -72px" align="justify"><font style="FONT-SIZE: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 1in; TEXT-INDENT: -72px" align="justify"><font style="FONT-SIZE: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(10) (e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Asset Purchase Agreement, dated March 19, 2008 by and among RCM Technologies, Inc., NuSoft Solutions, Inc. and the selling shareholders identified in section 1 of the agreement.</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 1in; TEXT-INDENT: -72px" align="justify"><font style="FONT-SIZE: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;31.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;Certification of Chief Executive Officer Required by Rule 13a-14(a) of the Securities Exchange Act of 1934, as amended.</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 1in; TEXT-INDENT: -72px" align="justify"><font style="FONT-SIZE: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font> <font style="FONT-SIZE: 10pt">31.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Certification of Chief Financial Officer Required by Rule 13a-14(a) of the Securities Exchange Act of 1934, as amended.</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 1in; TEXT-INDENT: -72px" align="justify"><font style="FONT-SIZE: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font> <font style="FONT-SIZE: 10pt">32.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Certification of Chief Executive Officer Required by Rule 13a-14(b) of the Securities Exchange Act of 1934, as amended. (This exhibit shall not be deemed &ldquo;filed&rdquo; for purposes of Section 18 of the Securities Exchange Act of
            1934, as amended, or otherwise subject to the liability of that section. Further, this exhibit shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended.)</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 1in; TEXT-INDENT: -72px" align="justify"><font style="FONT-SIZE: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;32.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;Certification of Chief Financial Officer Required by Rule 13a-14(b) of the Securities Exchange Act of 1934, as amended. (This exhibit shall not be deemed &ldquo;filed&rdquo; for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or
            otherwise subject to the liability of that section. Further, this exhibit shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended.)</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 1in; TEXT-INDENT: -72px" align="justify">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 1in; TEXT-INDENT: -72px" align="center"><font size="2">35</font></p>
            <hr align="center" width="100%" noshade size="2">
            <br>
            <br>

            <p style="PAGE-BREAK-AFTER: always"></p>
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            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b><font style="FONT-SIZE: 10pt">RCM TECHNOLOGIES, INC.</font></b></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; BORDER-BOTTOM: 0.5pt solid" align="center"><b><font style="FONT-SIZE: 10pt">SIGNATURES</font></b></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt">Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.<br>
            &nbsp;<br>
            &nbsp;<br>
            &nbsp;<br>
            &nbsp;<br>
            &nbsp;</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 1.1in; TEXT-INDENT: 171px" align="justify"><b><font style="FONT-SIZE: 10pt">RCM Technologies, Inc.</font></b></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 3.5in; TEXT-INDENT: -252px" align="justify"><font style="FONT-SIZE: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Date:<a name="OLE_LINK7">May</a> 8,
            2008&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; By:</font> <font style="FONT-SIZE: 10pt">/s/ Stanton Remer</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 3.7in" align="justify"><b><font style="FONT-SIZE: 10pt">_____________________________<br>
            Stanton Remer</font></b><br>
            <font style="FONT-SIZE: 10pt">Executive Vice President, Chief Financial Officer,</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 3.8in" align="justify"><font style="FONT-SIZE: 10pt">Treasurer, Secretary and Director<br>
            (Principal Financial Officer and<br>
            Duly Authorized Officer of the Registrant)</font></p>

            <p>&nbsp;</p>

            <p align="center"><font style="FONT-SIZE: 10pt">36</font></p>
            <!-- EEDocs PBStart-->
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            <p><b><font style="FONT-SIZE: 10pt">Exhibit 31.1</font></b></p>

            <p align="center"><b><font style="FONT-SIZE: 10pt">RCM TECHNOLOGIES, INC.</font></b></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt">CERTIFICATIONS REQUIRED BY<br>
            RULE 13a-14(a) OF THE SECURITIES EXCHANGE ACT OF 1934</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b><u><font style="FONT-SIZE: 10pt">CERTIFICATION</font></u></b></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">I, Leon Kopyt, certify that:<br>
            &nbsp;</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I have reviewed thisquarterly</font> <font style="FONT-SIZE: 10pt">report on Form 10-Q</font> <font style="FONT-SIZE: 10pt">of RCM Technologies, Inc. (the &ldquo;registrant&rdquo;);</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;<br>
            &nbsp;<br>
            3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;<br>
            &nbsp;<br>
            4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The registrant&rsquo;s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in" align="left"><font style="FONT-SIZE: 10pt">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this
            report is being prepared;<br>
            &nbsp;</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in" align="left"><font style="FONT-SIZE: 10pt">(b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in" align="left"><font style="FONT-SIZE: 10pt">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;evaluated the effectiveness of the registrant&rsquo;s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and<br>
            &nbsp;<br>
            (d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;disclosed in this annual report any change in the registrant&rsquo;s internal control over financial reporting that occurred during the registrant&rsquo;s most recent fiscal quarter (the registrant&rsquo;s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant&rsquo;s internal control over financial reporting; and</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The registrant&rsquo;s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant&rsquo;s auditors and the audit committee of the registrant&rsquo;s board of directors (or persons performing the equivalent function):</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in" align="left"><font style="FONT-SIZE: 10pt">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant&rsquo;s ability to record, process, summarize and report financial information; and<br>
            &nbsp;<br>
            (b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant&rsquo;s internal control over financial reporting.</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in" align="left"><font size="2">Date: May <font style="FONT-FAMILY: 'TIMES'">8,</font> <font style="FONT-FAMILY: 'TIMES'">2008</font></font><font style="FONT-SIZE: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; /s/ Leon
            Kopyt</font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
            <font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
            <u><font style="FONT-SIZE: 10pt">_______________________________</font></u></font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 2.5in; TEXT-INDENT: 36px" align="left"><font style="FONT-SIZE: 10pt">Leon Kopyt</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 2.5in; TEXT-INDENT: 36px" align="left"><font style="FONT-SIZE: 10pt">Chairman and Chief Executive Officer</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 2.5in; TEXT-INDENT: 36px" align="left"><font size="2">37</font></p>
            <!-- PAGE BREAK  --><!-- EEDocs PBStart-->
            <hr align="center" width="100%" noshade size="2">

            <p style="PAGE-BREAK-AFTER: always"></p>
            <!-- EEDocs PBEnd-->

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; BORDER-BOTTOM: 0.5pt solid" align="left"><b><font style="FONT-SIZE: 10pt">Exhibit 31.2</font></b></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b><font style="FONT-SIZE: 10pt">RCM TECHNOLOGIES, INC.</font></b></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt">CERTIFICATIONS REQUIRED BY<br>
            RULE 13a-14(a) OF THE SECURITIES EXCHANGE ACT OF 1934</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b><u><font style="FONT-SIZE: 10pt">CERTIFICATION</font></u></b></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">I, Stanton Remer, certify that:<br>
            </font><font style="FONT-SIZE: 10pt">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I have reviewed thisquarterly</font> <font style="FONT-SIZE: 10pt">report on Form 10-Q</font> <font style="FONT-SIZE: 10pt">of RCM Technologies, Inc. (the &ldquo;registrant&rdquo;);<br>
            &nbsp;</font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;</p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;<br>
            &nbsp;<br>
            4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The registrant&rsquo;s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:<br>
            &nbsp;</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in" align="left"><font style="FONT-SIZE: 10pt">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this
            report is being prepared;<br>
            &nbsp;</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in" align="left"><font style="FONT-SIZE: 10pt">(b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in" align="left"><font style="FONT-SIZE: 10pt">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;evaluated the effectiveness of the registrant&rsquo;s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and<br>
            &nbsp;<br>
            (d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;disclosed in this annual report any change in the registrant&rsquo;s internal control over financial reporting that occurred during the registrant&rsquo;s most recent fiscal quarter (the registrant&rsquo;s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant&rsquo;s internal control over financial reporting; and</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The registrant&rsquo;s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant&rsquo;s auditors and the audit committee of the registrant&rsquo;s board of directors (or persons performing the equivalent function):</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant&rsquo;s ability to record, process, summarize and report financial information; and<br>
            &nbsp;<br>
            (b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant&rsquo;s internal control over financial reporting.</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in" align="left"><font style="FONT-SIZE: 10pt">Date: May</font> <font style="FONT-SIZE: 10pt">8,</font> <font style="FONT-SIZE: 10pt">2008&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/s/ Stanton
            Remer&nbsp;&nbsp;</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 2.5in; TEXT-INDENT: 36px" align="left"><u><font style="FONT-SIZE: 10pt">___________________________</font></u></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 2.5in; TEXT-INDENT: 36px" align="left"><font style="FONT-SIZE: 10pt">Stanton Remer</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 2.5in; TEXT-INDENT: 36px" align="left"><font style="FONT-SIZE: 10pt">Executive Vice President</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 2.5in; TEXT-INDENT: 36px" align="left"><font style="FONT-SIZE: 10pt">Chief Financial Officer, Treasurer, and Secretary</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 2.5in; TEXT-INDENT: 36px" align="left"><font size="2">38</font></p>
            <!-- PAGE BREAK  --><!-- EEDocs PBStart-->
            <hr align="center" width="100%" noshade size="2">

            <p style="PAGE-BREAK-AFTER: always"></p>
            <!-- EEDocs PBEnd-->

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; BORDER-BOTTOM: 0.5pt solid" align="left"><b><font style="FONT-SIZE: 10pt">Exhibit 32.1</font></b></p>

            <p></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b><font style="FONT-SIZE: 10pt">RCM TECHNOLOGIES, INC.</font></b></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt">CERTIFICATIONS REQUIRED BY<br>
            RULE 13a-14(a) OF THE SECURITIES EXCHANGE ACT OF 1934</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
            <u><font style="FONT-SIZE: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></u></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I, Leon Kopyt, President and Chief Executive Officer of RCM Technologies, Inc., a Nevada corporation (the &ldquo;Company&rdquo;), hereby certify that, to my knowledge:<br>
            &nbsp;<br>
            &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The Company&rsquo;s periodic report on Form 10-Q for the quarter ended March 29, 2008 (the &ldquo;Form 10-Q&rdquo;) fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934, as amended; and<br>
            &nbsp;<br>
            &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of the Company.<br>
            &nbsp;<br>
            &nbsp;</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt">*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><u><font style="FONT-SIZE: 10pt">/s/ Leon Kopyt&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></u></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">Leon Kopyt<br>
            Chief Executive Officer</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">Date:</font> <font style="FONT-SIZE: 10pt">May 8,</font> <font style="FONT-SIZE: 10pt">2008</font></p>

            <p>&nbsp;</p>

            <p align="center"><font style="FONT-SIZE: 10pt">39</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt"><br>
            &nbsp;</font></p>
            <hr align="center" width="100%" noshade size="2">
            <br>
            <br>

            <p style="PAGE-BREAK-AFTER: always"></p>
            <!-- EEDocs PBEnd-->

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; BORDER-BOTTOM: 0.5pt solid" align="left"><b><font style="FONT-SIZE: 10pt">Exhibit 32.2</font></b></p>

            <p></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b><font style="FONT-SIZE: 10pt">RCM TECHNOLOGIES, INC.</font></b></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt">CERTIFICATIONS REQUIRED BY<br>
            RULE 13a-14(a) OF THE SECURITIES EXCHANGE ACT OF 1934</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">
            <u><font style="FONT-SIZE: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></u></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I, Stanton Remer, Chief Financial Officer of RCM Technologies, Inc., a Nevada corporation (the &ldquo;Company&rdquo;), hereby certify that, to my knowledge:<br>
            &nbsp;<br>
            &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The Company&rsquo;s periodic report on Form 10-Q for the quarter ended March 29, 2008 (the &ldquo;Form 10-Q&rdquo;) fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934, as amended; and<br>
            &nbsp;</font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of the Company.</p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt">*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><u><font style="FONT-SIZE: 10pt">/s/ Stanton Remer&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></u></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">Stanton Remer</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">Chief Financial Officer<br>
            &nbsp;</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt">Date: May 8,</font> <font style="FONT-SIZE: 10pt">2008</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font size="2">40</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
        </div>
    </body>
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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>2
<FILENAME>repay022608.txt
<DESCRIPTION>REPAYMENT AND SECURITY AGREEMENT DATED 02/26/2008
<TEXT>

                        REPAYMENT AND SECURITY AGREEMENT

     This Repayment and Security  Agreement (the  "Agreement") is made this 26th
day of  February  2008,  by  and  among  (I)  RCM  TECHNOLOGIES,  INC.  and  RCM
TECHNOLOGIES SERVICES COMPANY, INC. (collectively, "RCM"), (II) IDEAL INTERIORS,
INC. ("IDEAL"), CREATIVE INTERIORS PLUS, LLC ("CREATIVE"), DJJ, INC. ("DJJ") and
IDEAL STRUCTURAL SECURITY,  INC.  ("STRUCTURAL",  together with IDEAL, CREATIVE,
DJJ and STRUCTURAL,  collectively  the "Trade  Debtors"),  and (III) the persons
identified  on the  Schedule  of  Guarantors  attached  hereto  as  Exhibit  "A"
(collectively  the "Guarantors",  together with the Trade Debtors,  collectively
the "Obligors").

                                    RECITALS

         A. WHEREAS, pursuant to various management services, security and
guarantee agreements and related contracts and instruments among RCM, the Trade
Debtors and certain Guarantors, including without limitation the agreements and
instruments listed on the Schedule of Trade Debt Agreements attached hereto as
Exhibit "B" (collectively, the "Trade Debt Agreements"), (i) Trade Debtors
requested RCM to provide, and RCM provided, certain bonding, management and/or
personnel services to Trade Debtors in connection with various construction
contracts between Trade Debtors and the owners of the construction projects,
(ii) Trade Debtors granted RCM a security interest in their accounts and certain
other property, whether existing or thereafter arising or acquired
(collectively, the "Trade Collateral") as security for the performance of Trade
Debtors' obligations under the Trade Debt Agreements, and (iii) certain
Guarantors executed and delivered to RCM the Guaranty and Suretyship Agreements
set forth on the Schedule of Trade Debt Agreements attached hereto as Exhibit
"B" (collectively, the "Guarantees").

         B. WHEREAS, RCM provided various services for which the Trade Debtors
became indebted to RCM for the "Trade Debt" (as defined below) under the Trade
Debt Agreements.

         C. WHEREAS, Trade Debtors have failed to pay, when due, the Trade Debt
to RCM, are in material default of the Trade Debt Agreements and have requested
that RCM restructure and extend payment of the Trade Debt. RCM and Obligors have
agreed to enter into this Agreement to restructure and provide for the prompt
and orderly repayment of the Trade Debt subject to the terms and conditions set
forth herein.

         NOW THEREFORE, for and in consideration of the foregoing recitals which
are deemed incorporated herein by this reference and agreed to be true and
complete by the parties hereto, the terms of this Agreement and intending to be
legally bound hereby, the parties hereto agree as follows:

1. Trade Debt Obligations. Obligors agree and acknowledge that, as of February
25, 2008, there is presently due and owing to RCM under the Trade Debt
Agreements the total sum of $7,456,252.93 (the "Trade Debt"), as more fully set
forth in Exhibit "C" attached hereto.

a. Obligors agree and confirm that they have no right of setoff, counterclaim,
or defense to or against payment of the Trade Debt, and waive any right to
assert any right of setoff, counterclaim, or defense to or against payment of
the Trade Debt.

b. Obligors release RCM and its parents, subsidiaries, affiliates, owners,
directors, officers, employees and agents (collectively, the "RCM Group") from
any claims or causes of actions that Obligors, or any of them, have or may have
against the RCM Group including, without limitation, any claims relating to or
arising out of the Trade Debt Agreements and/or RCM's provision of services or
funds thereunder based upon any thing or matter occurring at any time prior to
the date of this Agreement.

c. The parties hereto agree that (i) the Trade Debtors are jointly and severally
liable for the repayment of the Trade Debt, (ii) the Trade Debt Agreements
remain unaltered and in full force and effect, and that the execution of this
Agreement shall in no way release, alter and/or impair Obligors' obligations to
RCM thereunder, except as expressly provided in this Agreement, and (iii) all
liens, security interests, rights and remedies granted to RCM in and under the
Trade Debt Agreements are valid and perfected and hereby renewed, confirmed and
continued, and shall also secure the performance by Obligors of their
obligations under this Agreement and any note and other agreement entered into
pursuant to this Agreement.

d. Obligors further agree that RCM shall have no further obligation to pay
and/or advance any amounts to Trade Debtors under the Trade Debt Agreements or
any other agreement between RCM and any Trade Debtor.

e. RCM may, but shall not be required to, pay any sums to any party, cure any
default under any agreement or document to which Trade Debtors or any of them
are parties, and take any and/or all actions RCM deems necessary to effectuate
the purpose of this Agreement or to preserve any Trade Collateral. Any
reasonable costs or expenses, including legal fees, incurred by RCM in
connection with such actions shall be added to the Trade Debt and shall become
part of the Trade Debt for which Obligors shall be responsible to repay.

2. Closing. A closing under this Agreement (the "Closing") shall occur on the
date of this Agreement (the "Closing Date") at a time and place mutually
agreeable to Trade Debtors and RCM. At Closing, the following shall occur
(collectively, the "Closing Conditions"):

a. Trade Debtors shall pay RCM the sum of $1,200,000.00 (the "Down Payment") to
be applied to the Trade Debt in any manner that RCM sees fit in its sole
discretion. The Down Payment shall be paid to RCM by cashier's check or wire
transfer of immediately available funds directly out of the proceeds of
financing provided to Ideal Interiors, Inc. d/b/a Ideal Construction by Prestige
Capital Corporation ("Prestige").

b. Trade Debtors shall execute and deliver to RCM a Note in the principal amount
of $6,256,252.93 being the amount of the Trade Debt less the Down Payment, in
the form attached hereto as Exhibit "D" (the "Note").

c. Guarantors shall execute and deliver to RCM guarantee and suretyship
agreements of all obligations and amounts owed by Trade Debtors to RCM under
this Agreement and the Note, in the form attached hereto as Exhibit "E" (the
"Guarantees").

d. Trade Debtors shall deliver to RCM a full and complete list of all existing
construction contracts to which any Trade Debtor is a party as of the Closing
Date (collectively, the "construction contracts"), including as to each such
contract: (i) the name of the Trade Debtor that is a party to such contract;
(ii) the full name and address of the customer and/or project owner; (iii) the
total project fees and/or costs; and (iv) the amount of billed and unpaid work
due and owing under such project.

This Agreement shall become null and void in the event that any of the Closing
Conditions is not fully satisfied at Closing. Time is the essence of this
Agreement and the Closing.

3. Repayment of Trade Debt. Trade Debtors shall pay RCM the Trade Debt, less the
amount of the Down Payment, in strict accordance with the terms and conditions
of the Note. It is understood and agreed by the parties hereto that on the
Closing Date RCM and Prestige intend to enter into a Subordination and
Intercreditor Agreement in the form attached hereto as Exhibit "F" (the
"Intercreditor Agreement"). Obligors hereby consent to and agree to be bound by
the terms of the Intercreditor Agreement. Obligors agree and acknowledge that
Guarantors execution and delivery of the Guarantees is a material inducement to
RCM entering this Agreement.

4. YMCA and Union Baptist Church Projects. RCM Technologies Services Company,
Inc. shall be paid 100% of any "Fees" as defined in and pursuant to the Master
Management Services Agreement between RCM Technologies Services Company, Inc.
and Ideal dated May 31, 2007 (the "MMSA") with respect to Ideal's construction
projects for the Union Baptist Church, White Plains, New York and the State
Island YMCA, Staten Island, New York. For the purpose of calculating the Fees
due RCM Technologies Services Company, Inc. under the MMSA, the percentage used
to compute the "Profit Sharing Fees" (as defined in the MMSA) payable to RCM is
hereby increased from 50% to 100%. Trade Debtors and RCM agree that: (a) all
Profit Sharing Fees shall be paid to RCM Technologies Services Company, Inc.,
50% of which shall be applied to amounts due and owing under the Note, and (b)
Lighthouse Management shall pay directly to RCM all Profit Sharing Fees. Trade
Debtors agree to cooperate with RCM, and to execute and deliver to RCM and
Lighthouse Management such written authorizations, instructions and/or
assignments as may be reasonably requested, to ensure that Lighthouse Management
makes direct payment to RCM of all Profit Sharing Fees.

5. Security.

a. Security Interest. In order to cross-collateralize and secure (i) the payment
of all amounts due by Trade Debtors, together with all other fees, costs and
expenses for which RCM is entitled to be paid or reimbursed, under the Trade
Debt Agreements, this Agreement and the Note, and (ii) the performance of all
obligations by Trade Debtors under the Trade Debt Agreements, this Agreement and
the Note (the obligations referred to in subsection 5.a(i) and (ii) herein are
collectively, the "Trade Debt Obligations"), Trade Debtors hereby grant and
convey to RCM a continuing perfected security interest in and lien upon all
"Collateral" (as defined below), now owned or hereafter acquired, all in
accordance with the provisions of the applicable Uniform Commercial Code as
enacted in either the State of New Jersey or the State of New York, as
determined by the location of the Collateral (the "UCC"). Obligors shall execute
and deliver to RCM on demand, and hereby irrevocably appoint RCM or any officer
or agent of RCM as its attorney-in-fact (which appointment is agreed to be
coupled with an interest) to execute, deliver and file such UCC financing
statements and other instruments (including, but not limited to, UCC
continuation statements) as RCM may require in order to perfect and maintain
such security interest under the UCC, and Obligors shall pay to RCM all costs
associated with the foregoing. A carbon, photographic, or other reproduction of
this provision shall be sufficient as a financing statement for filing purposes
under the UCC.

b. Collateral. For purposes of this Agreement, the term "Collateral" shall
include and be defined as (i) the Trade Collateral, and (ii) all of Trade
Debtors' right, title and interest in and to all accounts whether now owned or
existing or hereafter acquired or arising, regardless of where located. The
terms used in this security provision shall have the meanings ascribed to them
in the UCC.

c. Trade Debtors' Warranties, Representations and Agreements. Trade Debtors
represent and warrant to RCM and agree that:

(i) Trade Debtors are the owners of the Collateral free from any adverse lien,
security interest or encumbrance, except to the extent that RCM already has a
security interest or a lien on the Collateral or as otherwise provided in the
Intercreditor Agreement; and Trade Debtors will defend the Collateral against
all claims and demands of all persons at any time claiming the same or any
interest therein (other than RCM or Prestige under and subject to the
Intercreditor Agreement);

(ii) The Collateral is and will be used primarily for business purposes and in a
manner consistent with the terms of this Agreement;

(iii) Trade Debtors will not sell, exchange, lease, rent or otherwise dispose of
any of the Collateral or of any of Obligors' rights therein without the prior
written consent of RCM, except to Prestige and subject to the terms of the
Intercreditor Agreement;

(iv) Trade Debtors will not permit anything to be done that may impair the value
of any of the Collateral or the security interest granted hereunder;

(v) Trade Debtors will not hereafter assign, pledge or grant a security interest
in the Collateral to any person, firm or entity, except to Prestige and subject
to the terms of the Intercreditor Agreement.

6. Trade Debtors' Covenants.

a. Negative Covenants. Each Trade Debtor agrees and covenants that, it shall
not, without the prior written consent of RCM, do any of the following: (i)
terminate, or permit to be terminated, any construction contracts; (ii) release
any Person other than RCM from any liability or obligations with respect to any
construction contracts; (iii) assign, transfer or delegate any of its rights,
duties or obligations under or with respect to any construction contracts; (iv)
except for the liens and security interests granted to (A) RCM under the Trade
Debt Agreements, this Agreement or to RCM or any affiliate of RCM under any
other agreement, or (B) Prestige subject to the Intercreditor Agreement, cause
or permit the placement of any lien, security interest or other encumbrance
whatsoever on any of the Collateral; (v) change the location of its principal
place of business, its Federal tax identification number(s) or its name, state
of organization or structure in any manner; or (vi) take any action or omit to
take any action the result of which adversely affects RCM's security interests
in the Collateral.

b. Affirmative Covenants. Trade Debtors covenant with RCM that they shall:

                           (i) give RCM prompt written notice of any default(s)
by any Trade Debtor under any
construction contracts;

                           (ii) promptly notify RCM of all liens or claims for
labor and materials furnished
in connection with each and every construction contract and pay and discharge
such liens and claims;

                           (iii) fully complete each and every construction
contract in a good and workmanlike
manner and diligently perform its work in accordance with the terms and
conditions thereunder;

                           (iv) maintain in effect during the term of the Note
insurance issued by a duly
authorized insurance company in reasonable amounts and coverages for all
operations necessary and incidental to the conduct of each Trade Debtor's
operations, and provide RCM proof of such insurance within ten (10) days after
written request; and

                           (v) furnish to RCM promptly after any Trade Debtor
enters into any new
construction contracts after the date of this Agreement (and within ten (10)
days after written request by RCM), a full and complete list of all such
construction contracts, including as to each such contract: (i) the name of the
Trade Debtor that is a party to such contract; (ii) the full name and address of
the customer and/or project owner; (iii) the total project fees and/or costs;
and (iv) the amount of billed and unpaid work due and owing under such project.

7. Inspection; Monthly Reports; Audits. Trade Debtors shall permit RCM or its
agents, contractors, auditors, accountants or other professionals, at any time
upon reasonable prior written notice: (a) to enter upon and inspect the work or
construction with respect to any construction contracts; and (b) access to Trade
Debtors' books and records as RCM may deem necessary in its sole discretion to
review, copy and audit Trade Debtors' operations and financial condition. In
addition, Trade Debtors agree that they shall provide to RCM, not later than the
thirtieth (30th) day of each month during the term of the Note or such other
time as the parties may agree detailed reports of all revenue collected and
expenses paid during the preceding month. RCM shall have the right to audit and
inspect Trade Debtors' relevant books and records, form time to time, upon
reasonable prior notice and during normal business hours, to determine the
accuracy of any amounts in such reports.

8. Obligors' Representations and Warranties. To induce RCM to enter into this
Agreement, Obligors represent and warrant to RCM that: (a) Obligors are entering
into this Agreement in consideration of the mutual premises contained herein and
no officer, employee, representative or agent of RCM has made any
representations, warranties, or inducements, if any, other than those expressly
contained herein; (b) all of the facts set forth in the recitals to this
Agreement are true, accurate and complete in all material respects. All
representations and warranties set forth in this Paragraph 8 shall survive the
execution of this Agreement.

9. Defaults. It shall be an event of default under this Agreement on the part of
Obligors ("Event of Default") if (a) Obligors, or any of them, fail to make,
when due, any payments required pursuant to this Agreement, the Note or the
Guarantees, (b) Obligors, or any of them, fail to perform any other obligation
or covenant under this Agreement and such failure to perform is not cured within
fifteen (15) days after written notice from RCM, (c) Obligors, or any of them,
materially breach, or an event of default occurs under, the Note or any of the
Guarantees, (d) any of Trade Debtor's representations and warranties are
materially false, (e) there occurs after the date of this Agreement any further
material breaches or events of default on the part of the Obligors, or any of
them, under any of the Trade Debt Agreements, (f) Obligors, or any of them,
materially breach or default under any loan or financing arrangement with any
lender or factor, including without limitation Prestige Capital Corporation, (g)
Obligors, or any of them, file a voluntary petition, or an involuntary petition
is filed against Obligors, or any of them, seeking liquidation, reorganization,
arrangement, readjustment of debts, or any other relief under Bankruptcy Code or
under any other existing or future federal or state insolvency act or law, or
any formal written consent to, approval of, or acquiescence in, any such
petition or proceeding is made by Obligors or any of them, (h) any Obligor
applies for, consents to, or acquiesces in, the appointment of a receiver or
trustee over any of their affairs or assets, or (i) execution of an agreement of
sale of the Collateral, in whole or in part, for less than the amount necessary
to repay the Trade Debt Obligations.

10. No Control. Obligors acknowledge and agree that any requirement hereunder
that RCM approve or accept any action by Trade Debtors shall not constitute
control by RCM over such matters and that Trade Debtors assume full
responsibility for their actions, even if such actions are approved by RCM. Such
approval or acceptance by RCM shall not create privity of contract between RCM
and any third party with whom Trade Debtors choose to contract.

11. Independent Contractors. The relationship of RCM to Trade Debtors
established by this Agreement is solely that of a creditor. Nothing herein shall
be deemed to establish a partnership, joint venture, association or employment
relationship between the parties for any purpose. RCM is not to be considered
the agent of any Trade Debtor or any third-party provider of goods or services
with regard to the performance of their respective contractual or other legal
obligations hereunder or otherwise.

12. Mutual Representations and Warranties. Each party hereby represents and
warrants to the other party that: (a) this Agreement has been duly authorized,
executed and delivered by such party, and constitutes the legal, valid and
binding obligation, contract and agreement of such party, enforceable against
such party in accordance with its terms, except as enforcement may be limited by
bankruptcy, insolvency, reorganization, moratorium or similar laws or equitable
principles relating to or limiting creditors' rights generally; (b) such party
has all requisite power and authority to execute and deliver this Agreement; (c)
the execution, delivery and performance of this Agreement by such party have
been validly authorized and all necessary actions therefor have been taken on
the part of such party, and no further actions or authorizations are required;
and (d) the execution, delivery and performance of this Agreement by such party
will not constitute a violation or breach of or require the consent not
heretofore obtained of any person under any agreement or other instrument to
which such party is subject, nor will the execution, delivery and performance of
this Agreement by such party, violate any statute, law, regulation, rule, court
or administrative judgment, order or decree to or by which such party is subject
or bound. All representations and warranties set forth in this Paragraph 12
shall survive the execution of this Agreement.

13. Indemnification. Obligors agree to indemnify and hold harmless RCM and its
directors, officers, employees, affiliates, controlling persons, agents and
representatives and their successors and assigns (collectively, "RCM Indemnified
Parties", and each, an "RCM Indemnified Party")) from and against all
liabilities, demands, claims, actions or causes of action, assessments, losses,
damages, costs and expenses (including without limitation, reasonable attorneys'
fees and expenses) asserted against or incurred by any RCM Indemnified Party as
a result of or arising out of the breach of any representation, warranty,
covenant or agreement by Obligors, or any of them, under this Agreement.

14. Certain Remedies. Upon the occurrence of any Event of Default, RCM may, in
addition to any and all other remedies available under this Agreement, the Note
or Guarantees or at law (including without limitation the UCC) or in equity, at
any time thereafter (i) accelerate the repayment of any and all Trade Debt, and
(ii) foreclose any liens or security interests securing the Trade Debtors'
obligations hereunder. In connection with the exercise of any such remedies,
each Trade Debtor waives all right to require demand, presentment, protest,
advertisement or notice of any kind. To the extent that notice is required by
law to exercise any available remedy, the parties agree that such notice shall
be deemed to be reasonable if given at least five (5) days prior to the exercise
thereof. The proceeds of any sale or other realization upon any Collateral may
be applied by RCM in such a manner as it deems appropriate.

15. No Third-Party Beneficiaries. This Agreement is solely for the benefit of
RCM and Obligors, and their successors and permitted assigns, and this Agreement
shall not be deemed to confer upon or give to any other third party any remedy,
claim, liability, reimbursement, cause of action or other right.

16. Submission To Jurisdiction; Waivers.

a. ALL JUDICIAL PROCEEDINGS BROUGHT AGAINST ANY PARTY ARISING OUT OF OR RELATING
TO THIS AGREEMENT, THE NOTE AND/OR THE GUARANTEES MAY BE BROUGHT IN ANY STATE OR
FEDERAL COURT OF COMPETENT JURISDICTION LOCATED IN THE STATE OF NEW JERSEY. BY
EXECUTING AND DELIVERING THIS AGREEMENT, EACH PARTY, FOR ITSELF AND IN
CONNECTION WITH ITS PROPERTIES, IRREVOCABLY (a) ACCEPTS GENERALLY AND
UNCONDITIONALLY THE JURISDICTION AND VENUE OF SUCH COURTS; (b) WAIVES ANY
DEFENSE OF FORUM NON CONVENIENS; (c) AGREES THAT SERVICE OF ALL PROCESS IN ANY
SUCH PROCEEDING IN ANY SUCH COURT MAY BE MADE BY REGISTERED OR CERTIFIED MAIL,
RETURN RECEIPT REQUESTED, TO THE APPLICABLE PARTY AT ITS ADDRESS PROVIDED IN
ACCORDANCE WITH SECTION 17, BELOW AND (d) AGREES THAT SERVICE AS PROVIDED IN
CLAUSE (c) ABOVE IS SUFFICIENT TO CONFER PERSONAL JURISDICTION OVER THE
APPLICABLE PARTY IN ANY SUCH PROCEEDING IN ANY SUCH COURT, AND OTHERWISE
CONSTITUTES EFFECTIVE AND BINDING SERVICE IN EVERY RESPECT.

b. EACH OF THE PARTIES HERETO HEREBY AGREES TO WAIVE ITS RESPECTIVE RIGHTS TO A
JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING UNDER THIS
AGREEMENT, THE NOTE AND/OR THE GUARANTEES OR THE DEALINGS OF THE PARTIES WITH
RESPECT THERETO. THE SCOPE OF THIS WAIVER IS INTENDED TO BE ALL-ENCOMPASSING OF
ANY AND ALL DISPUTES THAT MAY BE FILED IN ANY COURT AND THAT RELATE TO THE
SUBJECT MATTER HEREOF, INCLUDING CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY
CLAIMS AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS. EACH PARTY HERETO
ACKNOWLEDGES THAT THIS WAIVER IS A MATERIAL INDUCEMENT TO ENTER INTO THIS
AGREEMENT, THAT EACH HAS ALREADY RELIED ON THIS WAIVER IN ENTERING INTO THIS
AGREEMENT, AND THAT EACH WILL CONTINUE TO RELY ON THIS WAIVER IN ITS RELATED
FUTURE DEALINGS. EACH PARTY HERETO FURTHER WARRANTS AND REPRESENTS THAT IT HAS
REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL AND THAT IT KNOWINGLY AND
VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL
COUNSEL. THIS WAIVER IS IRREVOCABLE, MEANING THAT IT MAY NOT BE MODIFIED EITHER
ORALLY OR IN WRITING (OTHER THAN BY A MUTUAL WRITTEN WAIVER SPECIFICALLY
REFERRING TO THIS SECTION 16(b) AND EXECUTED BY EACH OF THE PARTIES HERETO), AND
THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR
MODIFICATIONS HERETO. IN THE EVENT OF LITIGATION, THIS AGREEMENT MAY BE FILED AS
A WRITTEN CONSENT TO A TRIAL BY THE COURT.

17. Notices. All notices, requests, demands, waivers and other communications
required or permitted to be given under this Agreement shall be in writing and
may be given by any of the following methods: (i) personal delivery; (ii)
facsimile transmission; (iii) electronic mail; or (iv) overnight delivery
service. Notices shall be sent to the appropriate party at its address, email
address, or facsimile number given below (or at such other address, email
address or facsimile number of such party as shall be specified by notices given
hereunder):

<TABLE>
<CAPTION>


<S>     <C>    <C>    <C>    <C>    <C>                     <C>
                  To RCM:                                   RCM Technologies, Inc. and RCM Technologies Services
                  ------
                                                            Company, Inc.
                                                            20 Waterview Blvd., 4th Floor
                                                            Parsippany, NJ  07054
                                                            Attn:  Rich Timer and Kevin Miller
                                                            Facsimile: 856-486-0802
                                                            Email:   rich.timer@rcmt.com and
                                                            kevin.miller@rcmt.com

                  With a copy to:                           White and Williams LLP
                  --------------
                                                            1800 One Liberty Place
                                                            Philadelphia, PA  19103
                                                            Attn:  Steven E. Ostrow, Esquire
                                                            Facsimile: 215-789-7548
                                                            Email:  ostrows@whiteandwilliams.com

                  To Obligors:                              Ideal Interiors, Inc. et al.
                  -----------
                                                            575 8th Avenue, 6th Floor
                                                            New York, NY  10018
                                                            Attn:  Frank DeGrande
                                                            Facsimile: 212.262.7024
                                                            Email:  Fdegrande@ideal-interiors.com

                  With a copy to:                           Bill Bajohr, Esquire
                                                            499 Ernston Road
                                                            Parlin, NJ  08859
                                                            Facsimile:  (732) 721-8701
                                                            Email:  bill@bajohrlawoffice.com

</TABLE>

         All such notices, shall be deemed received as follows: (i) in the case
of personal delivery, upon actual receipt thereof by the addressee, (ii) in the
case of overnight delivery, upon receipt, (iii) in case of electronic mail, upon
receipt, or (iv) in the case of a facsimile transmission, upon transmission
thereof by the sender and issuance by the transmitting machine of a confirmation
slip that the number of pages constituting the notice have been transmitted
without error.

18. Miscellaneous.

a. Severability; Waiver and Amendment. If any provision of this Agreement shall,
for any reason, be held to be invalid or unenforceable in any jurisdiction in
which it is sought to be enforced, such invalidity and unenforceability shall
not affect any other provision hereof and it shall be construed as if such
invalid or unenforceable provision were omitted. The waiver by either party of a
breach or default in any of the provisions of this Agreement by the other party
shall not be construed as a waiver of any succeeding breach of the same or other
provisions; nor shall any delay or omission on the part of either party to
exercise or avail itself of any right, power or privilege that it has or may
have hereunder operate as a waiver of any breach or default by the other party.

b. Entire Agreement. This Agreement sets forth the entire understanding and
agreement between the parties regarding the subject matter of this Agreement,
and supersedes all oral or written agreements or understandings between the
parties as to that subject matter. No course of prior dealings between the
parties and no usage of trade shall be relevant to supplement or explain any
term herein. Except as otherwise provided herein, this Agreement may be modified
or amended only by a writing signed by all parties.

c. Headings. The section headings contained in this Agreement are solely for the
purpose of reference, are not part of the agreement of the parties and shall
not, in any way, affect the meaning or interpretation of this Agreement.

d. Counterparts; Facsimiles. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute but one agreement. Any facsimile signature of any
party hereto or any other document executed in connection herewith shall
constitute a legal, valid and binding execution by such party.

e. Construction. This Agreement was negotiated by sophisticated parties at arms'
length, and each party has carefully reviewed this Agreement prior to execution
and has been represented by counsel in the negotiation of this Agreement.
Accordingly, no party shall be construed as the drafting party against which
this Agreement could be construed.

f. Survival. The terms, provisions, covenants, representations and warranties of
this Agreement shall survive Closing.

g. Assignment. This Agreement shall inure to the benefit of, and be binding
upon, the successors and assigns of the parties hereto. Trade Debtors may not,
without the prior written consent of RCM, assign or delegate any of their,
rights, interests, duties, obligations or liabilities under this Agreement.

h. Governing Law. This Agreement shall be governed by, and construed in
accordance with, the domestic laws of the State of New Jersey, without giving
effect to any choice or conflict of law provision or rule (whether of the State
of New Jersey or any other jurisdiction) that would cause the application of
laws of any other jurisdiction other than the State of New Jersey.



                                                  (CONTINUED ON NEXT PAGE)



<PAGE>


         IN WITNESS WHEREOF, the parties hereto have duly executed this
Agreement as of the day and year first above written.
<TABLE>
<CAPTION>

                                                       RCM TECHNOLOGIES SERVICES COMPANY, INC.

<S>     <C>    <C>    <C>    <C>    <C>               <C>
                                       By:
                                                             Name:
                                                             Title:

                                                       RCM TECHNOLOGIES, INC.

                                                       By:  __________________
                                                              Name:
                                                               Title:


                                                       IDEAL INTERIORS, INC.

                                       By:
                                                             Name:
                                                             Title:


                                                       CREATIVE INTERIORS PLUS, LLC.

                                       By:
                                                             Name:
                                                             Title:


                                                       DJJ, INC..

                                       By:
                                                             Name:
                                                             Title:


                                                       IDEAL STRUCTURAL SECURITY, INC.

                                       By:
                                                             Name:
                                                             Title:



                                                       Guarantors:
                                                       ------------------------------
                                                       Frank S. DeGrande, individually

                                                       -------------------------------
                                                       Ricardo R. Rivera, individually

                                                       -------------------------------
                                                       Cadil Rodriguez, individually

                                                       -------------------------------
                                                       Louis Serrante, individually

</TABLE>




<PAGE>


                                   EXHIBIT "A"



                             SCHEDULE OF GUARANTORS

(1) Frank S. DeGrande

(2) Ricardo R. Rivera

(3) Cadil Rodriguez

(4) Louis Serrante



<PAGE>


                                   EXHIBIT "B"



                        SCHEDULE OF TRADE DEBT AGREEMENTS

         1. Agreement dated June 15, 2006 between RCM Technologies, Inc. and
Ideal Interiors, Inc.

         2. Security Agreement dated June 15, 2006 between RCM Technologies,
Inc. and Ideal Interiors, Inc.

         3.       Guaranty and Suretyship Agreement dated June 15, 2006
(Ideal Interiors, Inc.) executed by Frank S. DeGrande

         4.       Guaranty and Suretyship Agreement dated June 15, 2006
(Ideal Interiors, Inc.) executed by Louis Serrante

         5. Guaranty and Suretyship Agreement dated June 15, 2006 (Ideal
Construction, Inc.) executed by Ricardo R. Rivera

         6. UCC-1 Financing Statement perfecting lien of RCM Technologies, Inc.
in all accounts of Ideal Interiors, Inc. (Filing No. 200606200516203)

         7. Agreement dated February 1, 2007 between RCM Technologies, Inc. and
Creative Interiors Plus, LLC

         8. Security Agreement dated February 1, 2007 between RCM Technologies,
Inc. and Creative Interiors Plus, LLC

         9. Guaranty and Suretyship Agreement dated February 1, 2007 (Creative
Interiors Plus, LLC) executed by Frank S. DeGrande

         10. Guaranty and Suretyship Agreement dated February 1, 2007 (Creative
Interiors Plus, LLC) executed by Ricardo R. Rivera

         11. Guaranty and Suretyship Agreement dated February 1, 2007 (Creative
Interiors Plus, LLC) executed by Louis Serrante

         12. UCC-1 Financing Statement perfecting the lien of RCM Technologies,
Inc. on various assets of Creative Interiors Plus, LLC

         13. Master Management Services Agreement dated May 31, 2007 between RCM
Technologies Services Company, Inc. and Ideal Interiors, Inc.

         14.      Guaranty and Suretyship Agreement dated June 7, 2007
(Ideal Interiors, Inc.) executed by Louis Serrante

                                                  (CONTINUED ON NEXT PAGE)

         15.      Guaranty and Suretyship Agreement dated June 7, 2007
(Ideal Interiors, Inc.) executed by Frank DeGrande

         16. Guaranty and Suretyship Agreement dated June 7, 2007 (Ideal
Interiors, Inc.) executed by Ricardo R. Rivera

         17. UCC-1 Financing Statement perfecting lien of RCM Technologies
Services Company, Inc. on assets of Ideal Interiors, Inc. including Cash
Management Account and Receivables of RCM Services Projects (Filing No.
200709170739345)

         18. UCC-1 Financing Statement perfecting lien of RCM Technologies, Inc.
in accounts of Ideal Structural Security, Inc. (Filing No. 200707030543602)

         19. UCC-1 Financing Statement perfecting lien of RCM Technologies, Inc.
in accounts of DJJ, Inc. (Filing No. 200707030543587)





<PAGE>


                                   EXHIBIT "C"



                            [SCHEDULE OF TRADE DEBT]





<PAGE>


                                                        EXHIBIT "D"



                                                       [FORM OF NOTE]





<PAGE>


                                                        EXHIBIT "E"



                                                    [FORM OF GUARANTEES]





<PAGE>


                                                        EXHIBIT "F"



       [FORM OF PRESTIGE - RCM SUBORDINATION AND INTERCREDITOR AGREEMENT]




</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>3
<FILENAME>firstamendment022908.txt
<DESCRIPTION>FIRST AMENDMENT TO REPAYMENT AND SECURITY AGREEMENT 092908
<TEXT>

               FIRST AMENDMENT TO REPAYMENT AND SECURITY AGREEMENT

     This First Amendment to Repayment and Security  Agreement (the "Amendment")
is made as of this 29th day of February 2008, by and among (I) RCM TECHNOLOGIES,
INC. and RCM TECHNOLOGIES  SERVICES COMPANY,  INC.  (collectively,  "RCM"), (II)
IDEAL INTERIORS, INC. ("IDEAL"), CREATIVE INTERIORS PLUS, LLC ("CREATIVE"), DJJ,
INC. ("DJJ") and IDEAL STRUCTURAL SECURITY,  INC.  ("STRUCTURAL",  together with
IDEAL,  CREATIVE,  DJJ and STRUCTURAL,  collectively the "Trade  Debtors"),  and
(III) Frank S. DeGrande,  Ricardo R. Rivera,  Cadil Rodriguez and Louis Serrante
(collectively  the "Guarantors",  together with the Trade Debtors,  collectively
the "Obligors").

         WHEREAS, RCM and the Obligors entered into the Repayment and Security
Agreement dated as of February 26, 2008 (the "Repayment Agreement"). Capitalized
terms not otherwise defined in this Amendment shall have the meanings assigned
to them in the Repayment Agreement.

         WHEREAS, the Trade Debtors have requested that RCM agree to extend (i)
the date of payment of the Down Payment, and (ii) the Closing Deadline, and RCM
is willing to do so in accordance with the terms and conditions of this
Amendment.

         WHEREAS, one or more of the Trade Debtors is trading and conducting
business and/or has traded and/or conducted business under the trade name "Ideal
Construction" and named and/or designated "Ideal Construction" as the contractor
in certain construction contracts in which one or more of the Trade Debtors is a
party (collectively, the "Ideal Construction Contracts"; each an "Ideal
Construction Contract"), including but not limited to that certain AIA Standard
Form of Agreement Between Owner and Contractor dated July 5, 2007, between Ideal
Construction and YMCA of Greater New York attached hereto as Exhibit "A" (the
"YMCA Contract").

         WHEREAS, the Obligors have agreed to provide certain assurances to RCM
with regard to their use of the trade name "Ideal Construction" and the Ideal
Construction Contracts in accordance with the terms of this Amendment.

         NOW THEREFORE, for and in consideration of the foregoing recitals which
are incorporated herein by reference, the agreements and terms set forth below,
and intending to be legally bound hereby, the parties hereto agree to amend the
Repayment Agreement as follows:

         1. The Repayment Agreement is amended to add the following
representation and warranty immediately preceding the last sentence of Section 8
thereof:


                   "To further induce RCM to enter into this Agreement, Obligors
                  agree and represent and warrant to RCM that:

                           a. no Obligor, either directly or indirectly through
                  any other person or entity, owns, controls or has any interest
                  in any of the separate legal entities listed on Exhibit "B"
                  attached hereto (collectively, the "Ideal Construction
                  Corporations") or any other separate legal entity which has a
                  name that contains "Ideal Construction" or that trades as
                  "Ideal Construction";

                           b. the name "Ideal Construction" is used solely as a
                  trade name by one or more of the Trade Debtors;

                           c. the interest of the contractor in any and all of
                  the Ideal Construction Contracts, including especially and
                  without limitation the YMCA Contract, is the sole property of
                  one or more of the Trade Debtors; and

                           d. RCM has a valid and enforceable security interest
                  in and lien upon the Collateral, regardless of whether such
                  Collateral arises out of any of the Ideal Construction
                  Contracts, including especially and without limitation the
                  YMCA Contract.

         2. Upon the parties' execution of this Amendment:

                  a. Trade Debtors shall execute and deliver to RCM a Note dated
as of February 26, 2008 in the amount of $7,456,252.93 for the repayment of the
Trade Debt in the form attached hereto as Exhibit "C" (the "Replacement Note").
Effective upon RCM's receipt of the original, fully-executed Replacement Note:
(i) the Replacement Note shall replace and supersede the Note that Trade Debtors
executed and delivered to RCM pursuant to the Repayment Agreement, and RCM
agrees to promptly return the Note to Trade Debtors; (ii) all references to the
Note in the Repayment Agreement shall refer to the Replacement Note; and (iii)
Guarantors agree and confirm that their Guarantees shall remain in full force
and effect, apply to Trade Debtors' obligations under the Replacement Note and
that the "Note" (as defined in the Guarantees) shall mean and refer to the
Replacement Note.

                  b. Ideal and RCM shall execute and deliver to Prestige the
Subordination and Intercreditor Agreement among RCM, Prestige and Ideal in the
form attached hereto as Exhibit "D" (the "Replacement Intercreditor Agreement")
which the parties agree shall replace and supersede the Intercreditor Agreement.
All references to the Intercreditor Agreement in the Repayment Agreement shall
refer to the Replacement Intercreditor Agreement.

         3. Notwithstanding anything to the contrary in the Repayment Agreement,
satisfaction of the Closing Conditions shall no longer be required as a
condition to the effectiveness of the Repayment Agreement. RCM acknowledges
receipt of the Note, Guarantees and certified list of construction contracts and
agrees to extend the time for payment of the $1,200,000.00 Down Payment as
follows: (a) $1,000,000.00, plus accrued interest on the Trade Debt, shall be
paid on or before March 4, 2008; and (b) $200,000.00, plus accrued interest on
the outstanding Trade Debt shall be paid on or before March 14, 2008. The Down
Payment shall be paid by wire transfer of immediately available funds payable to
RCM directly out of the proceeds of financing to be provided to Ideal by
Prestige, with the Trade Debtors remaining liable to RCM for any deficiencies.
The Down Payment, to the extent received by RCM, shall be applied to the Trade
Debt in any manner that RCM sees fit in its sole discretion.

         4. The parties hereto agree and confirm that the Repayment Agreement is
in full force and effect and remains unmodified, except as amended in this
Amendment. To the extent there is any inconsistency or conflict between the
Repayment Agreement and this Amendment, the terms and provisions of this
Amendment shall govern and control.

         IN                                            WITNESS WHEREOF, the
                                                       parties hereto have
                                                       executed this Amendment
                                                       as of this 29th day of
                                                       February, 2008. RCM
                                                       TECHNOLOGIES SERVICES
                                                       COMPANY, INC.

                                                       By:
                                      Name:
                                     Title:

                             RCM TECHNOLOGIES, INC.

                                       By:  __________________________________
                                      Name:
                                     Title:

                              IDEAL INTERIORS, INC.

                                       By:
                                      Name:
                                     Title:

                              CREATIVE INTERIORS PLUS, LLC.

                                       By:
                                      Name:
                                     Title:


                               DJJ, INC..

                                      By:
                                      Name:
                                     Title:




                               IDEAL STRUCTURAL SECURITY, INC.

                                      By:
                                      Name:
                                     Title:


                                Guarantors:
                                ------------------------------
                                Frank S. DeGrande, individually

                                -------------------------------
                                Ricardo R. Rivera, individually

                                -------------------------------
                                Cadil Rodriguez, individually

                                -------------------------------
                                Louis Serrante, individually





<PAGE>


                                   EXHIBIT "A"

 [AIA Standard Form of Agreement Between Owner and Contractor dated
  July 5, 2007, between Ideal Construction and YMCA of Greater New York]



<PAGE>


                                   EXHIBIT "B"


                        [Ideal Construction Corporations]



<PAGE>


                                   EXHIBIT "C"

                                [RELACEMENT NOTE]



<PAGE>


                                   EXHIBIT "D"


                      [REPLACEMENT INTERCREDITOR AGREEMENT]

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>4
<FILENAME>intercreditoragreement.txt
<DESCRIPTION>SUBORDINATION AND INTERCREDITOR AGREEMENT DATED 02/26/2008
<TEXT>

                    SUBORDINATION AND INTERCREDITOR AGREEMENT

     THIS  SUBORDINATION AND INTERCREDITOR  AGREEMENT (this "Agreement") is made
and entered  into as of February  29,  2008,  by  Prestige  Capital  Corporation
("Prestige") and RCM Technologies,  Inc. and RCM Technologies  Services Company,
Inc.  (collectively  known as "RCM"); and acknowledged and consented to by Ideal
Interiors, Inc. ("Client").

                                    RECITALS

         WHEREAS, as security for various obligations owed to RCM (collectively,
the "Client - RCM Obligations"), Client has granted RCM a security interest in
and lien upon Client's right, title and interest in and to all accounts whether
now owned or existing or hereafter acquired or arising, regardless of where
located (collectively, the "Client Accounts"), including especially and without
limitation Client's right, title and interest in and to all accounts whether now
owned or existing or hereafter acquired or arising with respect to Client's
construction contract(s) and interests in construction projects for (a) the
Union Baptist Church, in White Pains, New York, and (b) the Staten Island YMCA,
in Staten Island, New York (collectively, the "Bonded Project Accounts"):

         WHEREAS, Prestige intends to purchase from time-to-time certain
accounts receivable of Client pursuant to the Purchase and Sale Agreement
between Prestige and Client (the "Purchase Agreement," as amended and together
with any related assignments, agreements and instruments, collectively the
"Prestige Agreements"), executed copies of such Prestige Agreements are attached
hereto as Exhibit "A". As security for Client's obligations under the Prestige
Agreements, Client intends to grant Prestige a security interest in and lien
upon Client's right, title and interest in and to the specific Client Accounts
that Client sells and assigns to Prestige under the Purchase Agreement
(collectively, the "Assigned Accounts") and all other Client Accounts, excepting
thereout and therefrom the Bonded Project Accounts (the foregoing collateral is
hereinafter collectively the "Prestige Collateral").

         WHEREAS, in order to induce (a) Prestige to enter into the Prestige
Agreements and purchase the Assigned Accounts and (b) RCM to consent to Client
entering into the Prestige Agreements and granting Prestige a security interest
in and lien upon the Prestige Collateral, the parties hereto have agreed to
certain terms and accommodations pursuant to the provisions of this Agreement.

         NOW THEREFORE, for and in consideration of the foregoing Recitals
(which are incorporated herein by reference to the same extent and with the same
force and effect as if fully set forth herein below), the mutual covenants
hereinafter set forth and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:

         1. RCM Payments. On or before March 4, 2008, Client and Prestige agree
that RCM shall be paid, directly out of the "Down Payment" (as defined in the
Purchase Agreement) the sum of $1,000,000.00 (the "First RCM Payment") by wire
transfer of immediately available funds pursuant to wire transfer instructions
to be provided by RCM to Prestige. This Agreement shall become null and void in
the event that RCM does not receive the First RCM Payment on or before March 4,
2008, 1:00 p.m. (EST). On or before March 14, 2008, Client and Prestige agree
that RCM shall be paid the sum of $200,000.00 (the "Second RCM Payment") by wire
transfer of immediately available funds pursuant to wire transfer instructions
to be provided by RCM to Prestige.

         2. Lien Priorities; Subordination. Effective upon RCM's receipt of the
First RCM Payment as provided above, and notwithstanding the time, order, method
of attachment, perfection, filing or recording of any security interests in and
liens upon the Client Accounts and Prestige Collateral in favor of RCM or
Prestige, the parties hereto agree, confirm and acknowledge that RCM shall have
a continuing security interest in and lien upon the Client Accounts, including
without limitation the Assigned Accounts, provided, however, that such security
interest and lien shall be subordinate in all respects including but not limited
to priority and distribution (the "RCM Subordination"), to Prestige's security
interest in and lien upon the Prestige Collateral, except that:

                  a. RCM shall have a continuing first security interest in and
lien upon the Bonded Project Accounts, it being understood and agree that (i)
Client shall not sell or assign, and Prestige shall not purchase or accept an
assignment of, the Bonded Project Accounts, and (ii) the Bonded Project Accounts
are not part of the Prestige Collateral and shall continue hereafter to be
excluded from the Prestige Collateral; and

                  b. Upon the occurrence of an "RCM Terminating Event" (as
hereinafter defined):

                           (i) the RCM Subordination shall automatically and
without the need for written
notice be deemed revoked and terminated solely with respect to RCM's security
interest in and lien upon any and all Client Accounts acquired or arising after
such RCM Terminating Event (collectively, the "Post-RCM Terminating Event
Accounts") and RCM shall thereafter have a continuing first security interest
and lien upon the Post-RCM Terminating Event Accounts;

                           (ii) RCM may exercise, enforce and/or realize upon
its rights and remedies with
respect to RCM's security interest in and lien upon the Post-RCM Terminating
Event Accounts; and/or

                           (iii) RCM may exercise, enforce and/or realize upon
its rights and remedies with
respect to RCM's security interest in and lien upon any Client Accounts existing
as of the occurrence of the RCM Terminating Event other than the Assigned
Accounts, free and clear of Prestige's security interest in and lien upon the
same, unless and until the occurrence of a "Prestige Terminating Event" (as
hereinafter defined).

         As used herein: (x) the term "RCM Terminating Event" shall mean the
occurrence of a material breach or default by Client of the Client - RCM
Obligations as declared by RCM which is not fully cured by Client and/or
Prestige within fifteen (15) days after written notice to cure provided by RCM
to Client with a copy to Prestige; and (y) the term "Prestige Terminating Event"
shall mean the occurrence of a material breach or default by Client of the
Prestige Agreements as declared by Prestige which is not fully cured by Client
and/or RCM within fifteen (15) days after written notice to cure provided by
Prestige to Client with a copy to RCM.

         3. Lien Acknowledgements; Permitted RCM Payments. Notwithstanding
anything to the contrary in this Agreement or the Prestige Agreements:

                  a. The parties hereto agree, acknowledge and confirm that all
security interests and liens granted to RCM and Prestige in the Client Accounts
and Prestige Collateral, respectively, are consented to, valid and perfected and
secure the performance by Client of the (i) Client - RCM Obligations, and (ii)
obligations under the Prestige Agreements, respectively.

                  b. Client agrees and authorizes Prestige to holdback, release
and pay over directly to RCM, and Prestige agrees to holdback, release and pay
over directly to RCM sufficient "Reserves" (as defined in the Purchase
Agreement) that would otherwise be paid or remitted to Client pursuant to the
Purchase Agreement, to make the following scheduled installment payments to RCM
for the benefit of Client on account of the Client - RCM Obligations
(collectively, the "RCM Installments"):

                           Due Date         Amount
                           May 1, 2008               $600,000.00
                           June 1, 2008              $250,000.00
                           July 1, 2008              $400,000.00

         In the event that there are insufficient Reserves to pay in full any of
the RCM Installments, Prestige nevertheless agrees to pay over to RCM all
available Reserves up to the amount of the applicable RCM Installment, as stated
above, and Ideal shall be responsible for paying RCM the difference between the
amount of the applicable RCM Installment and the amount paid over to RCM by
Prestige out of the Reserves. All payments of the RCM Installments shall be paid
by wire transfer of immediately available funds pursuant to wire transfer
instructions to be provided by RCM to Prestige.

         4. RCM Right to Cure Prestige Agreement Default. Prestige shall send
RCM written notice of any material breach or default by Client under the
Prestige Agreements and an opportunity to cure same within fifteen (15) days
thereafter (each a "Prestige Default Notice"). RCM shall have the right, but not
the obligation, to cure any such material breach or default by Client under the
Prestige Agreements within such fifteen (15) day period. During such cure
period, Prestige agrees not to exercise, enforce and/or realize upon its rights
and remedies with respect to Prestige's security interest in and lien upon the
Prestige Collateral. Prestige also agrees to promptly send RCM a copy of any
notice sent by Prestige or Ideal terminating the Purchase Agreement (each a
"Termination Notice").

         5. RCM Option to Purchase Prestige Rights. Upon delivery of a Prestige
Default Notice or Termination Notice to RCM, as the case may be, RCM shall have
the right, but not the obligation, to purchase Prestige's interest in the
Prestige Agreements for a purchase price equal to the aggregate outstanding
amount due and owing Prestige under the Prestige Agreements, as of the "Purchase
Closing Date" (as defined below), including any outstanding advances and accrued
termination and other fees and costs permitted and owing under the Prestige
Agreements. If RCM elects in writing to purchase Prestige's interest in the
Prestige Agreements, RCM's right to purchase the same (the "Purchase") shall be
subject to the following conditions: (1) the Purchase shall close (the "Purchase
Closing Date") on the date selected by RCM but in no event later than sixty (60)
days after the delivery of the Prestige Default Notice or Termination Notice to
RCM, as the case may be; (2) Prestige shall execute such assignments and
instruments as are reasonably required by RCM to evidence and confirm the
Purchase; and (3) the Purchase shall be accomplished through an escrow at a
title company to be mutually selected by RCM and Prestige, and RCM shall deposit
the purchase price and both RCM and Prestige shall deposit all documents
effectuating the Purchase with said title company. Upon consummation of the
Purchase, RCM shall be subrogated to the rights of Prestige under the Prestige
Agreements. Prior to the Purchase Closing Date, Prestige shall not, without
RCM's prior written consent, amend, modify, restructure or extend the Prestige
Agreements, or enforce or foreclose upon Prestige's security interest in and
lien upon the Prestige Collateral.

         6. Payments Held In Trust. In the event that any payment is made to RCM
or Prestige which is not permitted under this Agreement, such payments shall be
held by RCM or Prestige, as the case may be, in trust for the benefit of
Prestige, if held by RCM, or RCM, if held by Prestige, and shall be paid
forthwith over and delivered to the appropriate secured party for application to
the payment of the obligations under the Prestige Agreements, if paid over to
Prestige, or the payment of the Client - RCM Obligations, if paid over to RCM.

         7. Notices. All notices, requests, demands, waivers and other
communications required or permitted to be given under this Agreement shall be
in writing and may be given by any of the following methods: (i) personal
delivery; (ii) facsimile transmission; (iii) electronic mail; or (iv) overnight
delivery service. Notices shall be sent to the appropriate party at its address,
email address, or facsimile number given below (or at such other address, email
address or facsimile number of such party as shall be specified by notices given
hereunder):

<TABLE>
<CAPTION>

<S>     <C>    <C>    <C>    <C>    <C>                     <C>
                  To RCM:                                   RCM Technologies, Inc. and RCM Technologies Services
                  ------
                                                            Company, Inc.
                                                            20 Waterview Blvd., 4th Floor
                                                            Parsippany, NJ  07054
                                                            Attn:  Rich Timer and Kevin Miller
                                                            Facsimile: 856-486-0802
                                                            Email:   rich.timer@rcmt.com and
                                                            kevin.miller@rcmt.com

                  With a copy to:                           White and Williams LLP
                  --------------
                                                            1800 One Liberty Place
                                                            Philadelphia, PA  19103
                                                            Attn:  Steven E. Ostrow, Esquire
                                                            Facsimile: 215-789-7548
                                                            Email:  ostrows@whiteandwilliams.com

                  To Prestige:                              Prestige Capital Corporation
                  -----------
                                                            Att: Harvey L. Kaminski, President
                                                            400 Kelby Street 14th Floor
                                                            Fort Lee, NJ 07024
                                                            Fax # 201-944-9477
                                                            Email: Hkaminski@ prestigecapital.com

                  To Client:                                Ideal Interiors, Inc.
                  ---------
                                                            575 8th Avenue, 6th Floor
                                                            New York, NY  10018
                                                            Attn:  Frank DeGrande
                                                            Facsimile: 212.262.7024
                                                            Email:  Fdegrande@ideal-interiors.com

                  With a copy to:                           Bill Bajohr, Esquire
                                                            499 Ernston Road
                                                            Parlin, NJ  08859
                                                            Facsimile:  (732) 721-8701
                                                            Email:  bill@bajohrlawoffice.com
</TABLE>

         All such notices, shall be deemed received as follows: (i) in the case
of personal delivery, upon actual receipt thereof by the addressee, (ii) in the
case of overnight delivery, upon receipt, (iii) in case of electronic mail, upon
receipt, or (iv) in the case of a facsimile transmission, upon transmission
thereof by the sender and issuance by the transmitting machine of a confirmation
slip that the number of pages constituting the notice have been transmitted
without error.

         8. Further Assurances. The parties hereto shall execute, acknowledge,
and deliver upon the written demand of Prestige or RCM, as the case may be, at
any time or times, any and all further documents or instruments in recordable
form for the purpose of further confirming the subordination and the agreements
herein set forth.

         9. Miscellaneous.

                  a. Severability; Waiver and Amendment. If any provision of
this Agreement shall, for any reason, be held to be invalid or unenforceable in
any jurisdiction in which it is sought to be enforced, such invalidity and
unenforceability shall not affect any other provision hereof and it shall be
construed as if such invalid or unenforceable provision were omitted. The waiver
by either party of a breach or default in any of the provisions of this
Agreement by the other party shall not be construed as a waiver of any
succeeding breach of the same or other provisions; nor shall any delay or
omission on the part of either party to exercise or avail itself of any right,
power or privilege that it has or may have hereunder operate as a waiver of any
breach or default by the other party.

                  b. Entire Agreement. This Agreement sets forth the entire
understanding and agreement between the parties regarding the subject matter of
this Agreement, and supersedes all oral or written agreements or understandings
between the parties as to that subject matter. No course of prior dealings
between the parties and no usage of trade shall be relevant to supplement or
explain any term herein. Except as otherwise provided herein, this Agreement may
be modified or amended only by a writing signed by all parties.

                  c. Counterparts; Facsimiles. This Agreement may be executed in
two or more counterparts, each of which shall be deemed an original, but all of
which together shall constitute but one agreement. Any facsimile signature of
any party hereto or any other document executed in connection herewith shall
constitute a legal, valid and binding execution by such party.

                  d. Construction. This Agreement was negotiated by
sophisticated parties at arms' length, and each party has carefully reviewed
this Agreement prior to execution and has been represented by counsel in the
negotiation of this Agreement. Accordingly, no party shall be construed as the
drafting party against which this Agreement could be construed.

                  e. Assignment. This Agreement shall inure to the benefit of,
and be binding upon, the successors and assigns of the parties hereto; provided,
however, that Client may not, without the prior written consent of Prestige and
RCM, assign or delegate any of Client's rights, interests, duties, obligations
or liabilities under this Agreement.

                  f. Governing Law. This Agreement shall be governed by, and
construed in accordance with, the domestic laws of the State of New Jersey,
without giving effect to any choice or conflict of law provision or rule
(whether of the State of New Jersey or any other jurisdiction) that would cause
the application of laws of any other jurisdiction other than the State of New
Jersey.



                                                  (CONTINUED ON NEXT PAGE)



<PAGE>


         IN WITNESS WHEREOF, the parties hereto have duly executed this
Agreement as of the day and year first above written.
<TABLE>
<CAPTION>
<S>     <C>    <C>    <C>    <C>    <C>                <C>

                                                       RCM TECHNOLOGIES SERVICES COMPANY, INC.

                                                       By:
                                                             Name:
                                                             Title:

                                                       RCM TECHNOLOGIES, INC.

                                                       By:  __________________________________
                                                              Name:
                                                               Title:


                                                       PRESTIGE CAPITAL CORPORATION

                                                       By:  __________________________________
                                                               Name:
                                                               Title:


                                                       IDEAL INTERIORS, INC.

                                                        By:
                                                             Name:
                                                             Title:


</TABLE>



<PAGE>


                                   EXHIBIT "A"



                    [EXECUTED COPIES OF PRESTIGE AGREEMENTS]


</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>5
<FILENAME>note.txt
<DESCRIPTION>PROMISSORY NOTE DATED FEBRUARY 26, 2008
<TEXT>

                                 PROMISSORY NOTE


$6,256,252.93                                    Dated: February 26, 2008


     FOR VALUE  RECEIVED  AND  INTENDING  TO BE LEGALLY  BOUND  HEREBY,  ) IDEAL
INTERIORS,  INC.,  CREATIVE  INTERIORS PLUS, LLC, DJJ, INC. and IDEAL STRUCTURAL
SECURITY,  INC.  (collectively,  "Maker"),  promises  to pay to the order of RCM
TECHNOLOGIES,  INC. and RCM TECHNOLOGIES SERVICES COMPANY,  INC.  (collectively,
"Payee"), the principal sum of $6,256,252.93 (the "Principal Amount"),  together
with interest as set forth below,  until the date on which the Principal  Amount
and all interest thereon is paid in full,  payable in lawful money of the United
States of  America in  accordance  with the terms of this  Promissory  Note (the
"Note").

1. Payments of Interest and Principal. The Principal Amount, together with all
accrued but unpaid interest thereon and any costs and expenses assessed pursuant
to the terms of this Note (collectively, the "Obligations"), shall be payable as
follows:

(a) Interest on the outstanding Principal Amount shall accrue at a rate equal to
six percent (6.00%) per annum. Interest shall accrue on a daily basis and be
calculated for the actual number of days that the principal is outstanding,
based on a 365 day year. Interest shall continue to accrue on the principal
balance hereof notwithstanding any demand for payment, acceleration and/or the
entry of any judgment against Maker, until all of the Obligations hereunder are
repaid in full.

(b) On or before May 1, 2008, Maker shall deliver to Payee the principal amount
of $600,000.00, plus accrued interest on the outstanding Principal Amount.

(c) On or before June 1, 2008, Maker shall deliver to Payee the principal amount
of $250,000.00, plus interest on the outstanding Principal Amount.

(d) On or before July 1, 2008, Maker shall deliver to Payee the principal amount
of $400,000.00, plus interest on the outstanding Principal Amount.

(e) Commencing on August 1, 2008 and on the first day of each month thereafter
until all the Obligations are paid in full, but in no event later than July 1,
2011 (the "Maturity Date"), Maker shall pay to Payee the balance of the
Principal Amount, $5,006,253.00, together with interest thereon, in thirty-six
(36) equal monthly installment payments in the amount of $152,299.92 of
principal and interest. On the Maturity Date, or the date on which Payee makes
demand for repayment in full of this Note as a result of an "Event of Default"
(defined below), whichever occurs first, all outstanding Obligations shall
become immediately due and owing.

(f) All payments of principal, interest, fees and other amounts due under this
Note shall be made by Maker payable to the order of "RCM Technologies, Inc." and
delivered to the following office of Payee or at such other place designated by
Payee in writing to Maker: 20 Waterview Boulevard, 4th Floor, Parsippany, NJ
07054.

2. Default Rate of Interest. From and after the Maturity Date or from and after
the occurrence of an Event of Default hereunder, irrespective of any declaration
of maturity, all amounts remaining unpaid or thereafter accruing hereunder,
shall, at Payee's option, bear interest at a default rate of eighteen percent
(18%) per annum (the "Default Rate"). Such Default Rate of interest shall be
payable upon demand, but in no event later than when scheduled interest payments
are due, and shall also be charged on the amounts owed by Maker to Payee
pursuant to any judgments entered in favor of Payee with respect to this Note.

3. Late Charges. If any payment hereunder is not paid when due and continues
unpaid for a period of ten (10) calendar days thereafter, Maker agrees to pay to
Payee or any other holder hereof, in addition to all amounts of principal and
interest, a late charge of $100.00 or such lesser late charge as may be required
by law, but in no event shall the late charge be less than $25.00. This late
charge shall apply to each and every subsequent month that payment is not made.
In the event a court of competent jurisdiction determines that this late charge
violates any applicable usury law or regulation, this late charge shall be
reduced to the maximum amount permissible under such usury law or regulation.

4. Events of Default. Each of the following shall constitute an event of default
("Event of Default") hereunder: (a) Maker's failure to (i) make any payment when
due of any amount payable under this Note (including any amendment, refinancing,
renewal, substitution, extension and/or modification thereof), and (ii) fully
cure such nonpayment within ten (10) calendar days after the date of Payee's
written notice of such nonpayment to Maker; (b) the occurrence of any material
breach or event of default by Maker, or any of them, under any other agreement
with the Payee including without limitation the Repayment and Security Agreement
dated February 26, 2008, by and among Payee, Maker and the "Guarantors" (as
defined therein) (the "Repayment Agreement"); (c) the occurrence of any material
breach or event of default by Maker, or any of them, under any loan, financing
and/or factoring agreement with any other lender or factor, including without
limitation Prestige Capital Corporation; (d) if any Maker becomes insolvent or
makes an assignment for the benefit of creditors, or if any petition is filed by
or against any Maker under any provision of any state or federal law alleging
that such Maker is insolvent or unable to pay debts as they mature or under any
provision of the United States Bankruptcy Code; (e) the entry of any judgment
equal to or greater than $100,000.00 by a party other than the Payee against any
Maker which remains unsatisfied for thirty (30) days or the issuing of any
attachment, levy or garnishment by any party other than the Payee against any of
the "Collateral" (as defined in the Repayment Agreement); or (f) the
dissolution, merger, consolidation or reorganization of any Maker which is a
corporation or partnership without the prior written consent of Payee.

5. Payee's Rights Upon Default. Upon the occurrence of any Event of Default and
without the necessity of giving any further written notice to Maker, Payee may
do any one or more of the following: (a) accelerate the maturity of this Note
and all amounts payable hereunder and make demand for the immediate repayment
thereof; (b) exercise Payee's rights and remedies under this Note, the Repayment
Agreement and any other security agreement, pledge agreement, power, or any
other note, or any other agreement, instrument or document issued in connection
with or arising out of any of the Obligations or any other agreements between
Payee and Maker, or any of them; and/or (c) exercise any other rights that Payee
may have under applicable law or in equity.

6. Application of Funds; Prepayments. All sums realized by Payee on account of
this Note, from whatever source received, shall be applied first to any fees,
costs and expenses (including reasonable attorney's fees) incurred by Payee,
second to accrued and unpaid interest, and then to principal. Maker waives and
releases any right to require Payee to collect any of the Obligations from any
other collateral under any theory of marshalling of assets or otherwise, and
specifically authorizes Payee to apply any collateral in which Maker has any
right, title or interest against any of the Obligations in any manner that Payee
may determine. Maker may prepay the amounts due under the Note at any time
without prepayment fee or penalty, and any such prepayments shall be applied
pursuant to the terms of Section 6 of this Note.

7. Attorney's Fees and Costs. In the event that Payee engages an attorney to
represent it in connection with (a) any default or Event of Default by Maker
under this Note, (b) the enforcement of any of Payee's rights and remedies under
this Note, the Repayment Agreement or any other agreement between Payee and any
Obligor, (c) any potential and/or actual bankruptcy or other insolvency
proceedings commenced by or against any Maker and/or (d) any actual litigation
arising out of or related to any of the foregoing or any of the Obligations,
then Maker shall be liable to and shall reimburse Payee on demand for all
reasonable attorneys' fees, costs and expenses incurred by the Payee in
connection with the enforcement of the terms of this Note.

8. Miscellaneous.

(a) Integration. This Note, the Repayment Agreement and the other documents
executed in connection with the Repayment Agreement constitute the sole
agreement of the parties with respect to the transaction contemplated hereby and
supersede all oral negotiations and prior writings with respect thereto.

(b) No Implied Waiver. Payee shall not be deemed to have modified or waived any
of its rights or remedies hereunder unless such modification or waiver is in
writing and signed by Payee, and then only to the extent specifically set forth
therein. A waiver in one event shall not be construed as continuing or as a
waiver of or bar to such right or remedy in a subsequent event. After any
acceleration of, or the entry of any judgment on, this Note, the acceptance by
Payee of any payments by or on behalf of Maker on account of the indebtedness
evidenced by this Note shall not cure or be deemed to cure any Event of Default
or reinstate or be deemed to reinstate the terms of this Note absent an express
written agreement duly executed by Payee and Maker.

(c) Waiver. Maker, jointly and severally, waives demand, notice, presentment,
protest, demand for payment, notice of dishonor, notice of protest and diligence
of collection of this Note. Maker consents to any and all extensions of time,
renewals, waivers, or modifications that may be granted by Payee with respect to
the payment or other provisions of this Note, and to the release of any
collateral, with or without substitution. Maker agrees that makers, endorsers,
guarantors and sureties may be added or released without notice and without
affecting Maker's liability hereunder. The liability of Maker shall not be
affected by the failure of Payee to perfect or otherwise obtain or maintain the
priority or validity of any security interest in any collateral. The liability
of Maker shall be absolute and unconditional and without regard to the liability
of any other party hereto.

(d) No Usurious Amounts. Anything herein contained to the contrary
notwithstanding, Maker does not agree and shall not be obligated to pay interest
hereunder at a rate which is in excess of the maximum rate permitted by law. If
by the terms of this Note, Maker is at any time required to pay interest at a
rate in excess of such maximum rate, the rate of interest under this Note shall
be deemed to be immediately reduced to such maximum legal rate and the portion
of all prior interest payments in excess of such maximum legal rate shall be
applied to and shall be deemed to have been payments in reduction of the
outstanding principal balance. Maker agrees that in determining whether or not
any interest payable under this Note exceeds the highest rate permitted by law,
any non-principal payment, including without limitation, late charges, shall be
deemed to the extent permitted by law to be an expense, fee or premium rather
than interest.

(e) Partial Invalidity. The invalidity or unenforceability of any one or more
provisions of this Note shall not render any other provision invalid or
unenforceable. In lieu of any invalid or unenforceable provision, there shall be
added automatically a valid and enforceable provision as similar in terms to
such invalid or unenforceable provision as may be possible.

(f) Binding Effect. The covenants, conditions, waivers, releases and agreements
contained in this Note shall bind, and the benefits thereof shall inure to, the
parties hereto and their respective heirs, executors, administrators, successors
and assigns; provided, however, that this Note cannot be assigned by Maker
without the prior written consent of Payee, and any such assignment or attempted
assignment by Maker shall be void and of no effect with respect to Payee.

(g) Modifications. This Note may not be supplemented, extended, modified or
terminated except by an agreement in writing signed by the party against whom
enforcement of any such waiver, change, modification or discharge is sought.

(h) Jurisdiction. Maker irrevocably appoints each and every owner, partner
and/or officer of Maker as its attorneys upon whom may be served, by regular or
certified mail at the address set forth in the Repayment Agreement, any notice,
process or pleading in any action or proceeding against it arising out of or in
connection with this Note; and Maker hereby consents that any action or
proceeding against it be commenced and maintained in any court within the State
of New Jersey by service of process on any such owner, partner and/or officer;
and Maker agrees that the courts of such State shall have jurisdiction with
respect to the subject matter hereof and the person of Maker and all collateral
securing the obligations of Maker. Maker agrees not to assert any defense to any
action or proceeding initiated by Payee based upon improper venue or
inconvenient forum.

(i) Notices. All notices and communications under this Note shall be in writing
and shall be given by either (a) hand-delivery, (b) first class mail (postage
prepaid), or (c) reliable overnight commercial courier (charges prepaid), to the
addresses listed in the Repayment Agreement. Notice shall be deemed to have been
given and received: (i) if by hand delivery, upon delivery; (ii) if by mail,
three (3) calendar days after the date first deposited in the United States
mail; and (iii) if by overnight courier, on the date scheduled for delivery. A
party may change its address by giving written notice to the other party as
specified herein.

(j) Governing Law. This Note shall be governed by and construed in accordance
with the substantive laws of the State of New Jersey without reference to
conflict of laws principles.

(k) Joint and Several Liability. If Maker consists of more than one person or
entity, the word "Maker" shall mean each of them and their liability shall be
joint and several.

(l) Continuing Enforcement. If, after receipt of any payment of all or any part
of this Note, Payee is compelled or agrees, for settlement purposes, to
surrender such payment to any person or entity for any reason (including,
without limitation, a determination that such payment is void or voidable as a
preference or fraudulent conveyance, an impermissible setoff, or a diversion of
trust funds), then this Note, the Repayment Agreement and any other document
evidencing or related to the Obligations shall continue in full force and effect
or be reinstated, as the case may be, and Maker shall be liable for, and shall
indemnify, defend and hold harmless Payee with respect to, the full amount so
surrendered. The provisions of this Section shall survive the cancellation or
termination of this Note and shall remain effective notwithstanding the payment
of the obligations evidenced hereby, the release of any security interest, lien
or encumbrance securing this Note or any other action which Payee may have taken
in reliance upon its receipt of such payment. Any cancellation, release or other
such action shall be deemed to have been conditioned upon any payment of the
obligations evidenced hereby having become final and irrevocable.

(m) Waiver of Jury Trial. MAKER AND PAYEE AGREE THAT, TO THE EXTENT PERMITTED BY
APPLICABLE LAW, ANY SUIT, ACTION OR PROCEEDING, WHETHER CLAIM OR COUNTERCLAIM,
BROUGHT BY PAYEE OR MAKER, ON OR WITH RESPECT TO THIS NOTE OR THE DEALINGS OF
THE PARTIES WITH RESPECT HERETO, SHALL BE TRIED ONLY BY A COURT AND NOT BY A
JURY. PAYEE AND MAKER EACH HEREBY KNOWINGLY, VOLUNTARILY, INTENTIONALLY AND
INTELLIGENTLY AND WITH THE ADVICE OF THEIR RESPECTIVE COUNSEL, WAIVE, TO THE
EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT TO A TRIAL BY JURY IN ANY SUCH
SUIT, ACTION OR PROCEEDING. FURTHER, MAKER WAIVES ANY RIGHT IT MAY HAVE TO CLAIM
OR RECOVER, IN ANY SUCH SUIT, ACTION OR PROCEEDING, ANY SPECIAL, EXEMPLARY,
PUNITIVE, CONSEQUENTIAL OR OTHER DAMAGES OTHER THAN, OR IN ADDITION TO, ACTUAL
DAMAGES. MAKER ACKNOWLEDGES AND AGREES THAT THIS SECTION IS A SPECIFIC AND
MATERIAL ASPECT OF THIS NOTE AND THAT PAYEE WOULD NOT ENTER INTO THE TRANSACTION
EVIDENCED BY THE REPAYMENT AGREEMENT IF THE WAIVERS SET FORTH IN THIS SECTION
WERE NOT A PART OF THIS NOTE.

                  IN WITNESS WHEREOF, Maker has duly executed this Promissory
Note the day and year first above written and has hereunto set hand and seal.


                                                IDEAL INTERIORS, INC.


                                       By:
                                                             Name:
                                                             Title:

                                                CREATIVE INTERIORS PLUS, LLC.


                                       By:
                                                             Name:
                                                             Title:

                                                DJJ, INC.


                                       By:
                                                             Name:
                                                             Title:

                                                IDEAL STRUCTURAL SECURITY, INC.


                                       By:
                                                             Name:
                                                             Title:

         Payee hereby joins in this Note for the sole purpose of ratifying and
confirming its consent to the provisions contained in Paragraph 8(m) above.

RCM TECHNOLOGIES, INC.              RCM TECHNOLOGIES SERVICES
COMPANY, INC.

By: ______________________          By: _______________________
      Name:                                                Name:
      Title:                                               Title:

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>6
<FILENAME>nusoftapa.txt
<DESCRIPTION>ASSETS PURCHASE AGREEMENT DATED MARCH 19, 2008
<TEXT>

                            ASSET PURCHASE AGREEMENT

                                      AMONG

                             RCM TECHNOLOGIES, INC.,

                             NUSOFT SOLUTIONS, INC.,

                                       AND

                   THE SHAREHOLDERS OF NUSOFT SOLUTIONS, INC.





<PAGE>



<TABLE>
<CAPTION>


                                TABLE OF CONTENTS


<C>                                                                                                              <C>
1.   DEFINITIONS..................................................................................................1
     -----------
2.   PURCHASE AND SALE OF ASSETS..................................................................................3
     ---------------------------
   2.1.    Assets To Be Purchased.................................................................................3
           ----------------------
   2.2.    Excluded Assets........................................................................................4
           ---------------
   2.3.    Transition Period......................................................................................5
           -----------------
3.   PURCHASE PRICE; PAYMENT......................................................................................5
     -----------------------
   3.1.    Purchase Price.........................................................................................5
           --------------
   3.2.    Inspection of Records..................................................................................6
           ---------------------
   3.3.    Buyer's Stock..........................................................................................6
           -------------
   3.4.    Related Agreements.....................................................................................6
           ------------------
   3.5.    Allocation of Purchase Price...........................................................................6
           ----------------------------
   3.6.    Extension of Time for Deferred Payments................................................................6
           ---------------------------------------
4.   ASSUMPTION OF OBLIGATIONS AND LIABILITIES....................................................................7
     -----------------------------------------
   4.1.    Liabilities and Obligations Assumed....................................................................7
           -----------------------------------
   4.2.    Excluded Liabilities and Obligations...................................................................7
           ------------------------------------
5.   REPRESENTATIONS AND WARRANTIES OF SELLER AND SELLER'S SHAREHOLDERS...........................................7
     ------------------------------------------------------------------
   5.1.    Capitalization; Seller's Shareholders..................................................................7
           -------------------------------------
   5.2.    Financial Statements...................................................................................8
           --------------------
   5.3.    Due Organization.......................................................................................8
           ----------------
   5.4.    Due Authorization......................................................................................8
           -----------------
   5.5.    Material Adverse Effects...............................................................................9
           ------------------------
   5.6.    Litigation............................................................................................10
           ----------
   5.7.    Compliance; Governmental Authorizations; Permits and Licenses.........................................11
           -------------------------------------------------------------
   5.8.    Taxes.................................................................................................11
           -----
   5.9.    Agreements............................................................................................12
           ----------
   5.10.   Title to Property and Related Matters.................................................................12
           -------------------------------------
   5.11.   Intellectual Property.................................................................................13
           ---------------------
   5.12.   Brokerage Fees........................................................................................13
           --------------
   5.13.   Consents Required.....................................................................................13
           -----------------
   5.14.   Employees; Employee Benefit Plans.....................................................................13
           ---------------------------------
   5.15.   Environmental Matters.................................................................................16
           ---------------------
   5.16.   Insurance.............................................................................................16
           ---------
   5.17.   Customers.............................................................................................17
           ---------
   5.18.   Approval..............................................................................................18
           --------
   5.19.   Contractors...........................................................................................18
           -----------
   5.20.   Change in Business....................................................................................18
           ------------------
   5.21.   Full Disclosure.......................................................................................19
           ---------------
   5.22.   Related Party Transactions............................................................................18
           --------------------------
   5.23.   Improper Payments.....................................................................................19
           -----------------
   5.24.   Sufficiency of Purchased Assets.......................................................................19
           -------------------------------
   5.25.   Computer Software.....................................................................................20
           -----------------
6.   REPRESENTATIONS AND WARRANTIES OF BUYER.....................................................................20
     ---------------------------------------
   6.1.    Due Organization of Buyer.............................................................................20
           -------------------------
   6.2.    Due Authorization.....................................................................................20
           -----------------
   6.3.    Brokerage Fees........................................................................................20
           --------------
   6.4.    Approval..............................................................................................20
           --------
   6.5.    No Approvals Required.................................................................................20
           ---------------------
7.   COVENANTS OF THE PARTIES....................................................................................21
     ------------------------
   7.1.    Nondisclosure.........................................................................................21
           -------------
   7.2.    Confidentiality.......................................................................................21
           ---------------
   7.3.    Prohibition on Trading in Buyer Stock.................................................................22
           -------------------------------------
   7.4.    Expenses..............................................................................................22
           --------
   7.5.    Parties' Access to Records After Closing..............................................................22
           ----------------------------------------
   7.6.    Prorations............................................................................................22
           ----------
   7.7.    Bulk Sales and Transfer Taxes.........................................................................23
           -----------------------------
   7.8.    Further Assurances; Post Closing Assistance...........................................................23
           -------------------------------------------
   7.9.    Bonuses...............................................................................................24
           -------
   7.10.   Accounts Receivable...................................................................................24
           -------------------
   7.11.   Dissolution...........................................................................................24
           -----------
8.   THE CLOSING.................................................................................................25
     -----------
   8.1.    Time and Place........................................................................................25
           --------------
   8.2.    Deliveries by Seller..................................................................................25
           --------------------
   8.3.    Deliveries by Buyer...................................................................................26
           -------------------
9.   INDEMNIFICATION.............................................................................................26
     ---------------
   9.1.    Seller and Seller's Shareholders......................................................................26
           --------------------------------
   9.2.    Buyer.................................................................................................27
           -----
   9.3.    Methods of Asserting Claims for Indemnification.......................................................27
           -----------------------------------------------
   9.4.    Right of Set Off......................................................................................28
           ----------------
   9.5.    Separate Obligations..................................................................................28
           --------------------
10.  EXCLUSIVE JURISDICTION......................................................................................29
     ----------------------
11.  NOTICES.....................................................................................................29
     -------
   11.1.   If to Buyer, to:  RCM Technologies, Inc...............................................................29
12.  MISCELLANEOUS...............................................................................................30
     -------------
   12.1.   Nature of Representations and Warranties..............................................................30
           ----------------------------------------
   12.2.   Survival of Representations...........................................................................30
           ---------------------------
   12.3.   Entire Agreement......................................................................................30
           ----------------
   12.4.   Amendment.............................................................................................30
           ---------
   12.5.   Assignment............................................................................................30
           ----------
   12.6.   Choice of Law.........................................................................................31
           -------------
   12.7.   Headings..............................................................................................31
           --------
   12.8.   Construction..........................................................................................31
           ------------
   12.9.   Effect of Waiver......................................................................................31
           ----------------
   12.10.  Severability..........................................................................................31
           ------------
   12.11.  Binding Nature........................................................................................31
           --------------
   12.12.  No Third-Party Beneficiaries..........................................................................31
           ----------------------------
   12.13.  Counterparts..........................................................................................31
           ------------
   12.14.  Facsimile Signature...................................................................................31
           -------------------
   12.15.  Rules of Construction.................................................................................31
           ---------------------
</TABLE>


<PAGE>


                                LIST OF SCHEDULES

2.1(a)            Fixed Assets
2.1(b)            Intellectual Property
2.2               Excluded Assets
4.1               Assumed Liabilities
5.2(a)(i)         Financial Statements
5.2(a)(ii)        Interim Financial Statements
5.2(a)(iii)       Closing Income Statement
5.2(a)(iv)        Closing Balance Sheet
5.3               Due Organization and Certificates of Authority
5.5               Material Adverse Effect
5.6               Litigation
5.7               Licenses
5.8               Taxes
5.9               Contracts
5.10              Title to Property and Related Matters
5.13              Consents
5.14(a)           Employees and Contractors
5.14(b)           Employee Benefit Plans
5.14(c)           Employee contracts
5.14(h)           Workers' Compensation Claims
5.16              Insurance
5.17              Customers
5.21              Related Party Transactions
5.22              Lease(s)




<PAGE>


                                LIST OF EXHIBITS

Exhibit "A"       Form of Employment, Non-competition, and Non-solicitation
                   Agreement for Dale Mansour

Exhibit "B"       Form of Employment, Non-competition, and Non-solicitation
                   Agreement for Keith Brophy

Exhibit "C"       Form of Confirmation of Employment Agreement

Exhibit "D"       Form of Opinion Letter of Seller's Counsel


<PAGE>


                                      -33-
PHLDMS1 3933888v.7

PHLDMS1 3933888v.7
                            ASSET PURCHASE AGREEMENT

                  This ASSET PURCHASE AGREEMENT is made and entered into this
19th day of March, 2008 by and among RCM TECHNOLOGIES, INC., a Nevada
corporation ("Buyer"), NUSOFT SOLUTIONS, INC., a Michigan corporation
("Seller"), and the shareholders of Seller identified in Section 1, below
("Seller's Shareholders").

                                    RECITALS

                  WHEREAS, Seller is engaged in the business of providing
information technology solutions and services and related products ( the
"Business").

                  WHEREAS, Seller desires to sell and Buyer desires to purchase
certain of the assets of Seller utilized in connection with the Business, as
more particularly described herein.

                  WHEREAS, Each of the board of directors of Buyer and Seller
have approved this Agreement by duly adopted resolutions.

                  WHEREAS, Seller's Shareholders own all of the issued and
outstanding capital stock of Seller, and are entering into this Agreement in
order to induce Buyer to consummate the transactions described herein.

                  NOW, THEREFORE, for good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, and intending to be
legally bound hereby, the parties agree as follows:

1.       DEFINITIONS.

         For purposes of this Agreement, the terms set forth below shall have
the following meanings:

         "Baseline NOI" means, for each of the respective Earn-out Periods, Net
Operating Income equal to the following:

                           (i) For the First Earn-out Period, $2,300,000;
                           (ii) For the Second Earn-out Period, the greater of
                           (a) actual NOI for the First Earn-out Period or (b)
                           $2,600,000; or (iii) For the Third Earn-out Period,
                           the greatest of (a) actual NOI for the First Earn-out
                           Period, (b) actual NOI for the Second Earn-out
                           Period, or (c) $2,900,000.

         "Code" means the Internal Revenue Code of 1986, as amended.

         "Closing" means the transaction of the events set forth in Section 8
hereof.

         "Closing Date" means the day on which the Closing is held as set forth
in Section 8 hereof.

         "Closing Balance Sheet" means the unaudited balance sheet of Seller as
of the Effective Date prepared in accordance with GAAP, containing all accruals,
including but not limited to all payroll accruals (including 100% of accruals
for all bonuses awarded by Seller or earned by any of Seller's employees or
Contractors (as defined below) but not paid by Seller on or before the Closing
Date).

          "Closing Income Statement" means the unaudited reconciliation of the
income statement from the Financial Statements as set forth on Schedule
5.2(a)(iii).

         "Closing Net Operating Income" means gross revenue of the Business
(billed services at invoice value reduced by customer discounts, returns and
allowances) minus cost of sales and all operating expenses directly attributable
to the Business, reflecting all appropriate balance sheet accruals and
deferrals, and prepared in accordance with GAAP, but before interest and federal
and state taxes as set forth on Schedule 5.2(a)(iii).

         "Deferred Consideration Payments" has the meaning ascribed to it in
Section 3.1(c) hereof.

         "Earn-out Growth Payments" has the meaning ascribed to it in Section
3.1(d) hereof.

         "Earn-out Periods" means, collectively, the First Earn-out Period, the
Second Earn-out Period, and the Third Earn-out Period.

         "Effective Date" means March 1, 2008.

         "Excess NOI" means, for each of the Earn-out Periods, the amount of Net
Operating Income that exceeds the Baseline NOI for each respective period. In
the event that the amount of Net Operating Income does not exceed the Baseline
NOI, the Excess NOI shall be deemed to equal zero (0).

         "Financial Statements" mean the reviewed financial statements of Seller
for the fiscal years ended December 31, 2005, December 31, 2006, and December
31, 2007 prepared in accordance with GAAP.

         "First Earn-out Period" means the first full 12 months beginning on the
first day of Seller's fiscal month of May, 2008.

         "GAAP" means United States generally accepted accounting principles,
consistently applied.

         "Income Statement" means a statement, for any period after the Closing
Date, which sets forth the Net Operating Income.

         "Interim Financial Statements" mean the monthly unaudited financial
statements of Seller for the interim period from January 1, 2008 through the
last day of the last full month prior to the Closing Date prepared in accordance
with GAAP.

          "Liens" means any encumbrances, security interests, pledges, claims,
charges, restrictions, licenses, adverse or equitable claims or rights
whatsoever held by a third party and, with respect to real property, includes
but is not limited to, mortgages, easements, rights-of-way, restrictions,
covenants, conditions, and options.

         "NASDAQ" means the National Association of Securities Dealers
          Automated Quotation system.

         "Net Operating Income or "NOI" means, subsequent to the Effective Date,
determined in full accordance with GAAP except as otherwise noted herein, with
respect to the Business, net revenue (billed services and/or sold products at
invoice value reduced by customer discounts, returns and allowances) actually
collected minus cost of sales, all operating expenses directly attributable to
the Business including but not limited to general and administrative expenses,
legal fees and interest expenses on accounts receivables outstanding more than
60 days old but excluding (a) RCM Corporate Fees; (b) amortization of goodwill
from this transaction; (c) costs incurred by Buyer for the transactions
described in this Agreement including but not limited to accounting fees, legal
fees and commissions; and (d) Federal and State income taxes.

         "RCM Corporate Fees" means all costs incurred by Buyer not directly
related to the ongoing business conducted by Seller such as legal, accounting,
SEC filing fees and executive salaries, and overall general and administrative
expenses of Buyer for corporate operations not directly related to the Business.

         "SEC" means the United States Securities and Exchange Commission.

         "Second Earn-out Period" means the first full 12 months after the First
Earn-out Period.

         "Seller's Shareholders" means, collectively, Dale Mansour and Keith
           Brophy.

         "Third Earn-out Period" means the first full 12 months after the Second
Earn-out Period.

         Other capitalized terms used in this Agreement shall have the meanings
ascribed to them in the Sections where such terms are initially used.

2. PURCHASE AND SALE OF ASSETS.

2.1. Assets To Be Purchased. Upon the terms and subject to the conditions set
forth in this Agreement, Seller shall sell, transfer, convey and assign to
Buyer, free and clear of all Liens (except for Liens related to Assumed
Liabilities (as defined below)), and Buyer shall purchase and acquire from
Seller, at the Closing, all right, title and interest in, to and under all of
the assets, properties, rights and businesses of Seller other than the Excluded
Assets (as defined below), whether or not specifically referred to in this
Agreement, including the following assets of Seller (collectively, the
"Purchased Assets"):

(a) all of Seller's right, title and interest in and to all equipment, fixtures,
furniture, computer equipment and all other tangible personal property used by
Seller in the conduct of the Business (collectively, the "Fixed Assets"), a
true, complete and correct list of which is set forth on Schedule 2.1(a);

(b) all of Seller's right, title and interest in and to the following items: (A)
all of Seller's common law, state, federal and foreign trademarks, service
marks, trade names, trade logos and trade styles, (B) all of Seller's common law
and statutory copyrights and registrations, (C) all of Seller's federal and
foreign patents and pending patent applications, (D) all of Seller's permits,
licenses, and governmental authorizations used in connection with the Business,
including software licenses for the use of pre-packaged software (collectively,
"Licenses"), (E) all of Seller's inventions that have been reduced to practice
and are being used in the Business, (F) all of Seller's computer software source
codes and object codes, programs, text files, stored procedures, and source
trees used in connection with the Business, (G) all of the technical and
business confidential or proprietary information of Seller, including
discoveries reduced to practice, know-how, databases, methodologies and other
business or technical confidential information that are used by Seller or in
connection with or relating to the Business or that provide Seller with a
commercial advantage over any or all of its competitors, (H) all of Seller's
promotional, sales and advertising material, artwork, films, layouts,
catalogues, brochures, descriptions of products or services and package designs
relating to the Business, (I) all of Seller's client lists, customer lists and
supplier lists, (J) all of Seller's telephone and facsimile numbers, (K) all
domain names used in connection with the Business, including
"nusoftsolutions.com" and all of Seller's rights to content of the websites
found at such domain names, and (L) all goodwill relating to any of the
foregoing, (collectively, the "Intellectual Property"), a true, complete and
correct list of the Intellectual Property which has been registered under any
foreign, federal or state law is set forth on Schedule 2.1(b);

(c) true, complete and correct originals or photocopies of all books and
records, including all employee lists, all databases, accounts and ledgers and
all other instruments and documents relating to the Business and the Purchased
Assets being acquired by Buyer pursuant to this Agreement but excluding its
corporate minutes and stock ledgers;

(d) except as described in Section 4.2, all of Seller's leases and rental
agreements, all contracts, including contracts with customers of the Business,
employees of the Business, purchase orders, agreements and other instruments to
which Seller is a party or by which Seller or its assets may be bound, a true,
complete and correct list of which is set forth on Schedule 5.9 (collectively
the "Contracts");

(e) all rights of Seller under or pursuant to all warranties, representations
and guaranties made by suppliers or vendors in connection with products or
services furnished to Seller, or otherwise pertaining to the Business or
affecting the Purchased Assets;

(f) to the extent permitted by applicable law, all of Seller's goodwill in
connection with the Business, including all rights of Seller under any covenants
not-to-compete, confidentiality or non-solicitation agreements running to the
benefit of Seller; and

(g) all assets, properties, rights and claims of Seller of any kind or nature
(other than Excluded Assets) that are not otherwise described above.

2.2. Excluded Assets. Notwithstanding anything contained in this Agreement to
the contrary, the assets of Seller set forth on Schedule 2.2 are excluded from
the Purchased Assets and are not being purchased and sold hereunder (the
"Excluded Assets").

2.3. Transition Period. The parties agree that, to the extent permissible under
GAAP, from and after the Closing, they shall endeavor to treat the Closing for
accounting purposes as having occurred on the Effective Date and except as
otherwise set forth herein, Buyer shall maintain the economic benefits and
obligations of the operation of the Purchased Assets during the period from the
Effective Date through immediately prior to the Closing (the "Transition
Period").

3. PURCHASE PRICE; PAYMENT.

3.1. Purchase Price. Subject to the terms and conditions of this Agreement,
Buyer shall pay and deliver to Seller or to such third parties as Seller directs
the consideration described in and determined in accordance with the terms of
Sections 3.1(a), (b), (c), (d), (e) and (f) below, as the full, complete and
total consideration for the Purchased Assets (the "Purchase Price"):

(a) on the Closing Date, the delivery of the sum of $1,964,520.18, by wire
transfer of immediately available funds, to Huntington Bank to be applied by
Huntington Bank to repay Seller's indebtedness to Huntingdon Bank.

(b) one week after the Closing Date, 700,000 shares of Buyer's common stock (the
"Stock") subject to the terms of Section 3.3, below.

(c) one week after the Closing Date, the sum of $2,535,479.82 by wire transfer
of immediately available funds to a bank account designated by Seller.

(d) within one hundred twenty (120) days after the end of each of the Earn-out
Periods, deferred consideration payments equal to: (i) for the First Earn-out
Period, the sum of $800,000; (ii) for the Second Earn-out Period, the sum of
$800,000; and (iii) for the Third Earn-out Period, the sum of $800,000
(collectively, the "Deferred Consideration Payments"); provided, however, that
if (x) the amount of Net Operating Income for the First Earn-out Period is less
than $2,300,000, or (y) the amount of Net Operating Income for the Second
Earn-out Period is less than $2,600,000, or (z) the amount of Net Operating
Income for the Third Earn-out Period is less than $2,900,000, then the amount of
the Deferred Consideration Payment for the corresponding Earn-out Period shall
be zero (0). The parties expressly acknowledge that, depending upon the amount
of Net Operating Income for any of the Earn-out Periods, the amount of the
Deferred Consideration Payment for any given Earn-out Period may be zero (0) and
Seller shall not be entitled to receive any Deferred Consideration Payment.

(e) within one hundred twenty (120) days after the end of each of the Earn-out
Periods, deferred consideration payments equal to the sum of the Excess NOI (if
any) for such Earn-out Period multiplied by fifty percent (50%) (the "Earn-out
Growth Payments"). The parties expressly acknowledge that if there is no Excess
NOI for any Earn-out Period, then no Earn-out Growth Payment shall be earned or
payable for that Earn-out Period.

(f) within one hundred twenty (120) days after the end of the First Earn-out
period and Second Earn-out Period, deferred consideration payments, at Buyer's
sole election in the form of either (i) the sum of $1,000,000 in cash, or (ii)
subject to the terms of Section 3.3, below, the greater of (A) 150,000 shares of
the Stock or (B) that number of shares of Stock obtained by dividing the sum of
$1,000,000 by the average of the closing price of the Stock trading on the
NASDAQ system for the twenty (20) days on which securities were traded on the
NASDAQ immediately prior to the anniversary of the Closing Date; provided,
however, that if the amount of Net Operating Income is less than $2,200,000 for
the First Earn-out Period, than no deferred consideration payment for that First
Earn-out Period shall be earned or payable and if the amount of Net Operating
Income is less than $2,200,000 for the Second Earn-out Period, than no deferred
consideration payment for that Second Earn-out Period shall be earned or
payable.

3.2. Inspection of Records. In any year in which an installment of the Deferred
Consideration Payment or Earn-out Growth Payment is due, Seller and its
authorized representatives, during normal business hours and at Seller's sole
cost and expense, shall have the right to audit, abstract and copy the relevant
financial records of Buyer to verify the calculation of any such payments. Buyer
shall cooperate with Seller and its agents in providing access to financial
information regarding Seller, including accountants' work papers.

3.3. Buyer's Stock. At the direction of Seller, the Stock may be issued to
Seller, or its assigns. The certificates evidencing the Stock shall include
legends which indicate that (i) the Stock is subject to the terms of Rule 144
promulgated under the Securities Act of 1933; (ii) 66.6% of the shares of the
Stock may not be sold to any third party by any means for at least one (1) year
after the date on which the Stock is issued; and (iii) 33.4% of the shares of
the Stock may not be sold to any third party by any means for two (2) years
after the date on which the Stock is issued.

3.4. Related Agreements. Concurrently with the execution of this Agreement, Dale
Mansour shall execute and deliver the Employment, Non-competition, and
Non-solicitation Agreement in the form as set forth in Exhibit "A" attached
hereto, Keith Brophy shall execute and deliver the Employment, Non-competition,
and Non-solicitation Agreement with in the form as set forth in Exhibit "B"
attached hereto. Buyer would not enter into the transactions contemplated hereby
but for the covenants set forth in these agreements.

3.5. Allocation of Purchase Price. Within ninety (90) days after the Closing,
the parties shall, in good faith and in accordance with Section 1060 of the
Code, jointly determine the allocation of the Purchase Price among the Purchased
Assets. Seller and Buyer agree that the allocation may be amended or modified by
mutual written agreement prior to the filing of the applicable tax returns of
Buyer or Seller. Seller and Buyer shall use such allocation in all relevant tax
returns.

3.6. Extension of Time for Deferred Payments. If Buyer has not actually received
and collected all of the revenue used in the calculation of the Net Operating
Income before the date on which a Deferred Consideration Payment or Earn-out
Growth Payment becomes due and payable under the terms of Section 3.1, above,
then the date on which such payment is due may be extended by Buyer until all
such amounts are actually received or until Buyer reasonably determines that
such amounts will be received promptly.

         3.7 Work-in-Progress and Prepaid Expenses. Notwithstanding any terms in
this Agreement to the contrary, Seller shall transfer and convey to Buyer and
Buyer shall assume the Work-in-Progress and Unearned Revenues as set forth on
Column "C" of the Closing Balance Sheet, including the specific detail for
Work-In-Progress and Unearned Revenue. Buyer shall cause the Work-in-Progress to
be billed in the normal course of the Business consistent with past practices
and, to the extent that the amount of the Work-in-Progress actually collected
from the customers exceeds the amount of the Unearned Revenue, Buyer shall pay
such amount to Seller.

4. ASSUMPTION OF OBLIGATIONS AND LIABILITIES.

4.1. Liabilities and Obligations Assumed. Buyer shall not assume any of the
liabilities of Seller except those specifically set forth on Schedule 4.1 (the
"Assumed Liabilities").

4.2. Excluded Liabilities and Obligations. Except for the Assumed Liabilities as
provided in Section 4.1, Buyer is not assuming any debt, liability or obligation
of Seller and Seller shall retain all debts, liabilities and obligations of
Seller, whether relating to the Business, the Purchased Assets or otherwise,
including the following:

(a) all liabilities and obligations of Seller with respect to any claim, demand,
cause of action, suit, proceeding, judgment, loss, liability, or damage against
Seller;

(b) any other debt, liability or obligation of Seller;

(c) all liabilities and obligations to all employees of Seller accrued since its
inception, including accruals reflecting all earned but unpaid vacations,
holidays and bonuses as shown in the Closing Date Balance Sheet;

(d) Seller's insurance policies except those insurance policies constituting an
employee benefit, including but not limited to, Seller's healthcare insurance
plan; and

(e) all income taxes, payroll taxes, statutory federal, state and local taxes
and any taxes which may become due as a result of the transactions contemplated
by this Agreement other than personal property taxes not yet due and payable.

5. REPRESENTATIONS AND WARRANTIES OF SELLER AND SELLER'S SHAREHOLDERS. Seller
and Seller's Shareholders, jointly and severally, as a material inducement to
Buyer to enter into this Agreement and consummate the transactions contemplated
hereby, make the following representations and warranties to Buyer, which
representations and warranties are true and correct in all respects on this
date:

5.1. Capitalization; Seller's Shareholders.

(a) The authorized equity securities of Seller consist of 50,000 shares of
common stock, no par value, of which 120 shares are issued and outstanding.
Seller's Shareholders are, and will be on the Closing Date, the sole owners, of
record and beneficially, of all of the issued and outstanding capital stock of
Seller, free and clear of all Liens, claims or rights of other parties (whether
under option agreements, shareholder agreements or otherwise) to Seller's
capital stock.

(b) True, complete and correct copies of the organizational documents and all
minutes of Seller have heretofore been delivered to Buyer, as such documents or
instruments are presently in effect and have not been amended or modified and
the financial records reflect all payroll accruals including but not limited to
all bonuses, vacations, holidays and other compensation.

5.2. Financial Statements.

(a) A true, complete and correct copy of the Financial Statements is attached as
Schedule 5.2(a)(i). A true, complete and correct copy of the Interim Financial
Statements is attached as Schedule 5.2(a)(ii). A true, complete and correct copy
of the Closing Income Statement is attached as Schedule 5.2(a)(iii). A true,
complete and correct copy of the Closing Balance Sheet is attached as Schedule
5.2(a)(iv). The Financial Statements present, and the Interim Financial
Statements, the Closing Income Statement, and the Closing Balance Sheet present
or, as applicable, will present fairly in accordance with GAAP the assets,
liabilities and results of operations of Seller as of the dates and for the
periods indicated. The Financial Statements reflect all liabilities, contingent
or otherwise, of Seller as of the date thereof. Any liabilities incurred
subsequent to the dates thereof and consequently not reflected therein were
incurred in the ordinary course of business and do not in the aggregate have,
nor could they reasonably be expected in the future to have, any material
adverse effect on the Purchased Assets, on Seller or on the Business,
properties, prospects, operations, earnings, assets, liabilities or condition
(financial or otherwise) (individually or collectively, a "Material Adverse
Effect"). The contingency, tax and other reserves reflected on the Financial
Statements, Interim Financial Statements and Closing Balance Sheet are adequate,
appropriate and reasonable. The Closing Balance Sheet attached as Schedule
5.2(a)(iv), expressly including any footnotes, accurately reflects the amounts
of Closing Net Operating Income, Work-in-Progress and Deferred Revenue as of the
dates and for the periods indicated.

(b) All financial books and records and business records of Seller are in all
material respects true, complete and correct and have been maintained in
accordance with good business and accounting practices.

5.3. Due Organization. Seller is a corporation duly organized, validly existing
and in good standing under the laws of the State of Michigan and is qualified to
do business and in good standing in each state (a true, complete and correct
list of which is set forth on Schedule 5.3) where the properties owned, leased
or operated, or the business conducted, by it require such qualification except
where failure to so qualify would not result in a Material Adverse Effect.
Seller has the corporate power and authority to own its properties and assets
and to carry on the Business as now presently conducted.

5.4. Due Authorization. This Agreement has been duly authorized, executed and
delivered by Seller and has been executed and delivered by each of Seller's
Shareholders and constitutes a legal, valid and binding agreement of each of
Seller and Seller's Shareholders, enforceable in accordance with its terms,
except as such enforcement may be limited by applicable bankruptcy, insolvency,
moratorium and other similar laws relating to, limiting or affecting the
enforcement of creditors' rights generally or by the application of equitable
principles. Except as set forth on Schedule 5.4, neither the execution and
delivery of this Agreement by Seller and Seller's Shareholders, nor the
consummation of the transactions contemplated hereby by Seller and Seller's
Shareholders, nor compliance by Seller and Seller's Shareholders with any of the
provisions hereof, will violate in any material respect any order, writ,
injunction or decree of any court or governmental authority, or violate or
conflict with in any material respect or constitute a default under (or give
rise to any right of termination, cancellation or acceleration under), any
provisions of Seller's organizational documents, the terms or conditions or
provisions of any note, bond, lease, mortgage or agreement of any kind to which
either Seller or Seller's Shareholders is a party or by which Seller or Seller's
Shareholders or any of their respective properties may be bound, or violate in
any material respect any statute, law, rule or regulation applicable to Seller
or Seller's Shareholders.

5.5. Material Adverse Effects. Except as specifically stated in Schedule 5.5 or
as set forth in the Interim Financial Statements, from December 31, 2006 to the
date of this Agreement, the Business of Seller has been operated in the ordinary
course consistent with past practice and there has not been:

(a) any Material Adverse Effect;

(b) any other event or condition of any character that it is reasonable to
expect will, individually or in the aggregate with other events or conditions,
result in a Material Adverse Effect;

(c) any damage, destruction or loss that has not been repaired or replaced
(whether or not covered by insurance) affecting the Purchased Assets or
otherwise affecting Seller or the Business, its properties, prospects,
operations, earnings, assets, liabilities or condition (financial or otherwise)
excluding those that in the aggregate have not resulted in and could not
reasonably be expected to result in a Material Adverse Effect;

(d) any cancellation of any debts (except immaterial cancellations in the
ordinary course of business) or any waiver of any material rights of value to
Seller;

(e) any cancellation, termination, modification, change, waiver or material
breach of any existing contract of which Seller is a party that has resulted or
could reasonably be expected to result in a Material Adverse Effect, or the
entering into of any material contract not reflected in the Schedules annexed
hereto, or the termination or to Seller's knowledge, threatened termination of
any customer's relationship with Seller;

(f) any transfer, lapse or grant of any rights in the Intellectual Property or
any disposition or disclosure to any person of any trade secrets relating to the
Business that has resulted or could reasonably be expected to result in a
Material Adverse Effect;

(g) the entering into, creation or allowance of any new Lien on any Purchased
Assets other than those arising in the ordinary course of business and
immaterial in the aggregate;

(h) any increase or any change in any assumptions underlying or methods of
calculating any bad debt, contingency, tax or other reserves or any change in
its accounting practices, methods or assumptions (including changes in estimates
or valuation methods);

(i) any lease or sublease of real property by Seller or the exercise of any
purchase options or rights of first refusal contained in any lease or sublease
to which Seller is a party, or the termination, surrender, cancellation or
assignment of any of Seller's properties demised under any leases, or any part
thereof, except those that are immaterial in the ordinary course of business
consistent with past practice;

(j) the incurring by Seller of any indebtedness for borrowed money, the entering
into of any commitment to borrow money or making any loans or agreements to lend
money to third parties, or the agreement to guaranty any obligations of third
parties (other than in connection with the negotiation and collection of
immaterial negotiable instruments in the ordinary course of business);

(k) the writing up or writing down of the value of any of Seller's assets on its
financial statements or any sale, exchange or disposal of any of Seller's assets
or rights, other than the sale of its services, inventory, equipment or other
property in the ordinary course of business consistent with past practice;

(l) declared, set aside or paid any cash or non-cash dividends or declared, set
aside or made any cash or non-cash distributions of any kind to its
shareholders, or made any direct or indirect redemption, retirement, purchase or
other acquisition of any shares of its capital stock;

(m) any resignation or termination of any key employee of Seller, or receipt by
Seller of notice from any key employee of Seller of his or her intention to
resign; or

(n) any (i) grant of an increase in compensation payable or compensation to
become payable to any of Seller's directors, officers, employees or Contractors,
(ii) establishment of new benefits to Seller's directors, officers, employees or
Contractors, (iii) increase to existing benefits to Seller's directors,
officers, employees or Contractors, or (iv) modification to any collective
bargaining agreement to which Seller may be bound.

5.6. Litigation. Except as set forth on Schedule 5.6, there are no actions,
suits, claims, investigations or legal, administrative or arbitration
proceedings pending or to the knowledge of Seller threatened against Seller,
whether at law or in equity, before or by any federal, state, municipal, local,
foreign or other court or governmental department, commission, board, bureau,
agency or instrumentality, nor, the knowledge of Seller, are there any
circumstances that could reasonably be expected to result in any such action,
suit, claim, investigation or proceeding. Neither Seller nor Seller's
Shareholders are in violation of or default under, nor are any of Seller,
Seller's Shareholders or the Purchased Assets subject to, any judgment, order,
writ, injunction or decree of any federal, state, local or foreign governmental
or regulatory entity (or any department, agency, authority or political
subdivision thereof) or court or arbitrator addressed to it or to which it is a
party that could reasonably be expected to result in a Material Adverse Effect.
Set forth on Schedule 5.6 is a true, complete and correct description of the
settlement of any proceedings of the nature described in this Section 5.6 since
January 1, 2006, together with a description of the amount and nature of each
settlement.

5.7. Compliance; Governmental Authorizations; Permits and Licenses. Neither
Seller nor Seller's Shareholders have failed to file any report or return
required by any government or governmental agency except where the failure to
file has not and could not reasonably be expected to result in a Material
Adverse Effect. Seller and Seller's Shareholders have complied in all material
respects with all federal, state, local or foreign laws, ordinances, regulations
and orders applicable to the Business. Except as set forth on Schedule 5.7, (i)
the Licenses described on Schedule 5.7 constitute all of the Licenses required
by or appropriate for and utilized in the ownership and operation of the
Business as it is currently being conducted, all of which are owned or held
legally and beneficially by Seller; (ii) all of the Licenses are in full force
and effect; (iii) Seller has not received any notice to the effect that
additional Licenses are required by or appropriate for Seller; (iv) except as
set forth in Schedule 5.7, no consent, waiver, approval, license or
authorization of or designation, declaration or filing with any governmental
agency or any third party is required in connection with the execution and
delivery of this Agreement or any instrument contemplated hereby or the
consummation of the transactions contemplated hereby, including the transfer of
the Licenses to Buyer; and (v) no modification, suspension or cancellation of a
License, or any proceeding relating thereto, is pending or, to the knowledge of
Seller or Seller's Shareholders, threatened with respect to a License. The
execution and delivery of this Agreement and the consummation of the
transactions contemplated hereby will not result in a revocation or suspension
of, or require the amendment of, any License.

5.8. Taxes.

(a) Except as disclosed on Schedule 5.8, all (i) federal, state, local or
foreign tax returns (collectively, the "Returns") required to be filed with
respect to the properties, assets, operations, income and net worth of Seller
have been timely filed or appropriate extensions have been obtained and such
Returns are true, correct and complete; (ii) such Returns have been prepared in
accordance with all applicable laws and requirements, and accurately reflect
taxable income (or other measure of tax) of Seller, and (iii) taxes and
governmental charges, including, without limitation, any interest and penalties
(collectively "Taxes") due pursuant to such Returns or in connection with
Seller's operations have been paid or adequate provision therefor has been made
on the Financial Statements. Except as disclosed on Schedule 5.8, there are no
outstanding agreements or waivers extending the statutory period of limitation
concerning any Tax liability of Seller, no examination of any Return of Seller
is currently in progress and no governmental authority has, within the last
three (3) years, notified Seller or Seller's Shareholders of any Tax claim,
investigation or proceeding or conducted any audit. All monies required to be
collected or withheld by Seller for income Taxes, social security or other
payroll Taxes have been collected or withheld, and either paid to the
appropriate governmental agencies, set aside in accounts for such purpose, or
accrued, reserved against and entered upon the books of Seller and Seller is not
liable for any Taxes or penalties for failure to comply with any of the
foregoing.

(b) To the knowledge of Seller, there exist no grounds for the assertion or
assessment of any additional Taxes against Seller or its assets. No claim has
been made by a taxing authority in any jurisdiction where Seller does not file
tax returns with Seller is or may be subject to taxation by that jurisdiction.

(c) True, correct and complete copies of all federal or state income tax
Returns, Tax examination reports and statements of deficiencies assessed
against, or agreed to by, Seller with respect to the last two years have been
delivered to Buyer.

(d) The Company has not ever (i) joined in or been required to join in filing a
consolidated or combined federal, state or local income Return, (ii) been the
subject of a Tax ruling that has continuing effect, (iii) been the subject of a
closing agreement with any taxing authority that has continuing effect, or (iv)
granted a power of attorney with respect to any Tax matters that has continuing
effect.

(e) The Company is not a party to any tax-sharing agreement.

(f) The Company is not "foreign person" within the meaning of Section 1445 of
the Internal Revenue Code and the regulations promulgated thereunder.

(g) The Company does not own any interest in any entity characterized as a
partnership for federal income tax purposes.

5.9. Agreements. Except for insurance policies (a true, complete and correct
list of which is set forth on Schedule 5.16), and lease agreements (a true,
complete and correct list of which is set forth on Schedule 5.22), Schedule 5.9
contains a true, complete and correct list of all Contracts. True, complete and
correct copies of all written Contracts, and a memorandum describing the
material terms of each and every oral Contract, have been delivered to Buyer
prior to the date hereof. No event has occurred that (whether with or without
notice or lapse of time or both) would constitute a default by Seller under any
of the Contracts. To the knowledge of Seller, except as set forth on Schedule
5.9, there has been no default by any other party to any of the Contracts.
Except as set forth on Schedule 5.9, no Contract that requires the performance
of services by Seller is presently expected to result in a loss to Seller upon
completion or performance thereof. No Contract contains any covenant limiting or
restricting the freedom of Seller to engage in any business or compete with any
person. Seller has complied in all material respects with all material
provisions of all Contracts.

5.10. Title to Property and Related Matters. Seller has, and at the time of the
Closing will have, good and indefeasible title to all of the Purchased Assets,
free and clear of any Liens except those set forth on Schedule 5.10. Except as
set forth in Schedule 5.10 and except for matters that may arise in the ordinary
course of business, the Fixed Assets of Seller are in good operating condition
and repair, reasonable wear and tear excepted, and all are owned, maintained and
used in material conformity with all applicable federal, state and local laws,
regulations and ordinances. There is no condition that materially interferes
with the use of the Purchased Assets in the ordinary course of Business. Except
for Excluded Assets, all assets constituting, used principally in connection
with, and necessary or appropriate to the conduct of, the Business as currently
operated are owned or leased by Seller and are being conveyed to Buyer
hereunder. None of Seller's tangible personal property is subject to any
contract for its sale to any party other than in the ordinary course of business
consistent with past practice, and none of Seller's tangible personal property
is subject to any contract for its use by any party.

5.11. Intellectual Property. Except as set forth on Schedule 2.1(b), there are
no registered trademarks, copyrights or patents owned by or licensed to Seller.
All Intellectual Property is free and clear of all Liens and not subject to any
License granted by Seller to any third party. Seller has adequate and sufficient
rights, registered or unregistered, to use the Intellectual Property as
currently used in the Business, free and clear of competing rights or interests
of others that would preclude or otherwise impair such use by Seller. Seller has
not received any notice or claim from any person that the trademarks or service
marks of Seller used in the Business as currently conducted infringe any
trademark, trade name, copyright or patent of any third party.

5.12. Brokerage Fees. Seller has not incurred, and will not incur, any liability
for brokerage or finder's fees or similar charges in connection with the
transactions contemplated by this Agreement other than to Grant Thornton
Corporate Finance, LLC.

5.13. Consents Required. Except as set forth on Schedule 5.13, no approval,
authorization, consent, order or other action of, or filing with, any person,
firm or corporation or any court, administrative agency or other governmental
authority is required in connection with the execution and delivery by Seller or
Seller's Shareholders of this Agreement or the consummation by Seller or
Seller's Shareholders of the transactions described herein.

5.14. Employees; Employee Benefit Plans.

(a) Schedule 5.14(a) sets forth the number and names of the directors, officers
and employees of Seller as of February 29, 2008, the total compensation paid to
each of the directors, officers and employees of Seller during the periods
January 1, 2006 to December 31, 2006 and January 1, 2007 to December 31, 2007,
the accrued total compensation, including figures for each of salary and bonuses
paid for the fiscal year ending December 31, 2008 but excluding any bonuses
earned for each of the directors, officers and employees of Seller for the
fiscal year ending December 31, 2008.

(b) Except as disclosed on Schedule 5.14(b), Seller does not have any "employee
benefit plans" (as such term is defined in Section 3(3) of the Employee
Retirement Income Security Act of 1974, as amended ("ERISA") (the "Benefit
Plans"). Schedule 5.14(b) identifies all programs, including, without
limitation, any pension plans, health and welfare plans, life, disability,
medical, dental or hospitalization insurance plans, sick-leave, vacation accrual
or holiday plans, bonus, savings, profit-sharing or other similar benefit plans,
deferred compensation, stock option, stock ownership and stock purchase plans
covering employees or former employees of Seller. The Company does not sponsor
or contribute to, nor has it ever sponsored or been required to contribute to,
any "multiemployer plan" as such term is defined in Section 3(37) of ERISA. As
applicable with respect to each Benefit Plan, Seller has delivered to Buyer true
and complete copies of (i) each Benefit Plan, including all amendments thereto,
and in the case of an unwritten Benefit Plan, a written description thereof,
(ii) all trust documents, investment management contracts, custodial agreements
and insurance contracts relating thereto, (iii) the current summary plan
description and each summary of material modifications thereof, (iv) the two (2)
most recent annual reports (Form 5500 and all schedules thereto) filed with the
Internal Revenue Service, (v) the most recent Internal Revenue Service
Determination Letter and each currently pending application to the Internal
Revenue Service for a Determination Letter, (vi) the two (2) most recent summary
annual reports, actuarial reports, financial statements and trustee reports, and
(vii) all records, notices and filings concerning (x) Internal Revenue Service
or Department of Labor audits or investigations, (y) "prohibited transactions"
within the meaning of Section 406 of ERISA or Section 4975 of the Internal
Revenue Code and (z) "reportable events" within the meaning of Section 4043 of
ERISA. The Benefit Plans are and have been maintained and administered in
compliance with the requirements of ERISA and, where applicable, Paragraph 401
of the Code. There are no accumulated funding deficiencies as defined in
Paragraph 302 of ERISA or Paragraph 412 of the Code, whether or not waived, with
respect to the Benefit Plans. There is not now, nor has there been any
prohibited transaction (as defined in Paragraph 406 of ERISA or Paragraphs 503
or 4975 of the Code) involving the Benefit Plans. There are no pending or, to
the knowledge of Seller or Seller's Shareholders, threatened investigations or
audits by governmental agencies or any claims by or on behalf of the Benefit
Plans or by any employee of Seller alleging a breach or breaches of such plans,
or fiduciary duties thereunder, violations of other applicable federal or state
law with respect to the Benefit Plans or arising out of events relating to the
employment of the employees of Seller, which could result in a monetary
liability, or any material non-monetary liability, on the part of Seller under
ERISA or any other law, nor, to the knowledge of Seller or Seller's
Shareholders, is there any basis for such a claim.

(c) Seller and each of the employees listed on Schedule 5.14(a) are parties to a
Contract (described on Schedule 5.9) which sets forth certain terms under which
each employee is employed by Seller and Seller does not have any other written
contracts, or any oral contracts, including any employment, management, agency
or consulting contracts, with respect to any of its current or retired
employees.

(d) Seller is not a party to any collective bargaining agreement and there are
no union organizational activities or efforts to effect a representation
election pending or threatened.

(e) Except as disclosed on Schedule 5.14(e), Seller has complied in all material
respects with all applicable laws relating to the employment of labor, including
the provisions thereof relating to benefits required to be provided under Part
VI of Subtitle B of Title I of ERISA or Section 4980B(f) of the Code
(collectively, "COBRA"), wages, hours, working conditions, employee benefit
plans and the payment of withholding and social security taxes.

(f) No present or former employee of Seller has, or upon termination of their
employment with Seller as contemplated under the terms of Section 7.12 of this
Agreement, will have any claim against Seller (whether under federal or state
law, any employment agreement, or otherwise) on account of or for (a) overtime
pay, other than overtime pay for the current payroll period, (b) wages or salary
for any period other than the current payroll period, (c) vacation, time off or
pay in lieu of vacation or time off, other than that earned in respect of the
current fiscal year, (d) any violation of any statute, ordinance or regulation
relating to minimum wages or maximum hours of work, or (e) for any severance pay
or compensation.

(g) Neither Seller nor any agent, representative or employee of Seller has
committed any unfair labor practice as defined in the National Labor Relations
Act of 1947, as amended, and there is not now pending or to the knowledge of
Seller, threatened any charge or complaint against Seller by the National Labor
Relations Board or any representative thereof.

(h) Except as set forth on Schedule 5.14(h), Seller has not had any worker's
compensation claims asserted against it during the three (3) years preceding the
date hereof.

(i) Except as otherwise disclosed on Schedule 5.14(i):

(i) the Benefit Plans which are "employee pension benefit plans" within the
meaning of Section 3(2) of ERISA and which are intended to meet the
qualification requirements of Section 401(a) of the Code (each a "Pension Plan")
now meet, and at all times since their inception have met the requirements for
such qualification, and the related trusts are now, and at all times since their
inception have been, exempt from taxation under Section 501(a) of the Code.

(ii) All Pension Plans have received determination letters from the IRS to the
effect that such Pension Plans are qualified and the related trusts are exempt
from federal income taxes and no determination letter with respect to any
Pension Plan has been revoked nor, to the knowledge of Seller or Seller's
Shareholders, is there any reason for such revocation, nor has any Pension Plan
been amended since the date of its most recent determination letter in any
respect which would adversely affect its qualification.

(iii) No Benefit Plan is now or at any time have been subject to Part 3,
Subtitle B of Title I of ERISA or Title IV of ERISA. All contributions to, and
payments from, any Benefit Plan which may have been required in accordance with
the terms of such Benefit Plan or any related document have been timely made.
All such contributions to, and payments from, any Benefit Plan, except those to
be made from a trust, qualified under Section 401(a) of the Code, for any period
ending before the Closing Date that are not yet, but will be, required, shall be
paid on or before the Closing Date.

(iv) Neither Seller, nor to the knowledge of Seller and Seller's Shareholders,
any fiduciary, trustee or administrator of any Benefit Plan, has engaged in or,
in connection with the transactions contemplated by this Agreement, will engage
in any transaction with respect to any Benefit Plan which would subject any such
Benefit Plan, Seller, Seller's Shareholders, or Buyer to a tax, penalty or
liability for a "prohibited transaction" under Section 406 of ERISA or Section
4975 of the Code. None of the assets of any Benefit Plan is invested in any
property constituting "employer real property" or an "employer security", within
the meaning of Section 407 of ERISA.

(v) All insurance premiums with respect to any insurance policy related to a
Benefit Plan for any period up to and including the Closing Date shall have been
paid on or before the Closing Date, and, with respect to any such insurance
policy or premium payment obligation, neither Seller nor Buyer shall be subject
to a retroactive rate adjustment, loss sharing arrangement or other actual or
contingent liability.

(vi) With respect to each Benefit Plan that is a "group health plan" within the
meaning of Section 607 of ERISA and that is subject to Section 4980B of the
Code, Seller complies in all respects with the continuation coverage
requirements of the Code and ERISA.

(vii) No Benefit Plan provides benefits, including, without limitation, death or
medical benefits, beyond termination of service or retirement other than (A)
coverage mandated by law or (B) death or retirement benefits under a Benefit
Plan qualified under Section 401(a) of the Code. The Company has not made a
written or oral representation to any current or former employee promising or
guaranteeing any employer paid continuation of medical, dental, life or
disability coverage for any period of time beyond retirement or termination of
employment.

(viii) The Company's execution of, and performance of the transactions
contemplated by this Agreement, will not constitute an event under any Benefit
Plan that will result in any payment (whether as severance pay or otherwise),
acceleration, vesting or increase in benefits with respect to any employee. No
Benefit Plan provides for "parachute payments" within the meaning of Section
280G of the Code.

5.15. Environmental Matters. Neither Seller nor Seller's Shareholders have
received any notification that Seller has not complied with or presently is not
in compliance with any and all laws, rules and regulations relating to
environmental protection and conservation, including the Comprehensive
Environmental Response, Compensation and Liability Act and the Superfund
Amendments and Reauthorization Act of 1986, as amended and all applicable state
laws pertaining to the environment ("Environmental Requirements"). Seller has
not in the past and does not presently use, possess, generate, treat,
manufacture, process, handle, store, recycle, transport or dispose of hazardous
or toxic materials, substances, wastes, pollutants or contaminants (including
petroleum, petroleum products, poly-chlorinated biphenyls), radio-active
materials, asbestos or asbestos-containing materials in quantities or in a
manner which requires any environmental permit or in a manner which has caused,
causes or threatens to cause a release. There are no circumstances which may
interfere with or prevent continued compliance, or which may give rise to any
liability, or otherwise form the basis of any claim, or investigation under
Environmental Requirements, relating to the operation of the Business. For the
purpose of this Section, "hazardous substances" or "hazardous materials" shall
include (1) hazardous substances as defined in the Comprehensive Environmental
Response, Compensation and Liability Act, as amended, and regulations
thereunder, and (2) any substance for which state or local laws require the
clean-up, removal or other special handling of such materials or imposing
liability based upon improper handling thereof. Seller has not received any
notice that any of the Premises (as defined below) is listed, or proposed for
listing, on any list maintained by any governmental agency of sites requiring
remediation. Except for any liability arising exclusively from Seller's
respective occupancy of the Premises, Seller has not retained or assumed, by
contract, law or otherwise, any liability or responsibility for any
environmental claims or conditions.

5.16. Insurance.

(a) Schedule 5.16 contains a true, complete and correct list of all policies of
liability, errors and omissions, environmental, crime, fidelity, life, fire,
workers' compensation, health, director and officer liability and all other
forms of insurance currently in effect and owned or held by Seller, and
identifies for each such policy the underwriter, policy number, coverage type,
premium, expiration date and deductible. Seller maintains all insurance coverage
required by applicable law and such other insurance coverage, in such amounts,
as it considers commercially reasonable and appropriate with respect to the
Business and the Purchased Assets. All such insurance policies are outstanding
and in full force and effect and all premiums required to be paid with respect
to such policies have been paid through the Closing. Such policies adequately
insure Seller against liability (including products liability, errors and
omissions and/or breach of warranty claims) and against risks of fire, theft,
casualty and vandalism, in each case with respect to the Purchased Assets.

(b) With respect to each insurance policy required to be listed on Schedule
5.16:

(i) Seller has not received any notice from any issuers of such policies that
any such policies have been terminated, cancelled or are void, and Seller has
not submitted any claim for coverage under any such policy that has been denied
on the basis that Seller did not have a valid and binding insurance policy;

(ii) neither Seller nor any other party to any such policy is in breach or
default (including with respect to the payment of premiums or the giving of
notices) and to the knowledge of Seller no event has occurred that, with notice
or the lapse of time, or both, would constitute such a breach or default, or
permit termination, modification or acceleration, under the policy;

(iii) neither Seller nor Buyer shall be subject to a loss sharing arrangement or
other actual or contingent liability; and

(iv) no party to the policy has repudiated any provision thereof.

(c) All such insurance policies are on an "occurrence," as opposed to a "claims
made," basis.

(d) All such insurance policies are sufficient for compliance with all
requirements of law and the Contracts.

5.17. Customers.

(a) Set forth on Schedule 5.17 is a true, complete and correct list of all
customers of Seller, including the location of such customers and the total
revenue received from each such customer for the periods (i) January 1, 2006 to
December 31, 2006 and (ii) January 1, 2007 to December 31, 2007. No customer of
Seller has terminated or, to Seller's knowledge, threatened to terminate its
relationship with Seller. The relationships between Seller and all of its
customers are on a sound, commercial basis other than as disclosed on Schedule
5.5 and Seller has received no notice that the relationships with such customers
will not continue without material change following the Closing. There are no
commitments, special arrangements, promotional agreements, advertising programs
or similar arrangements with any customers of Seller.

(b) Seller does not receive a material portion of its revenues from customers
pursuant to or as a result of (i) any program or policy, whether sponsored by
any private entity or any governmental authority, designed to award contracts to
businesses based on the race, ethnicity or gender of its owners and/or
operators, including business set aside programs or affirmative action programs
or (ii) any familial relationship by or among any of Seller's Shareholders,
Seller's officers, directors, agents, employees or Contractors and any officers,
directors, agents employees of any of Seller's customers. All of Seller's
revenues arise from transactions with parties who are not affiliates of Seller
and resulted from agreements to provide services which were negotiated at
arm's-length.

(c) Set forth on Schedule 5.17 is a complete list of all of Seller's existing
contracts with customers of Seller which are open with respect to fulfillment of
their terms by Seller as of the Closing Date (the "Work in Progress"), including
the name of the respective customer, the start date of the contract, the total
value of the project from inception through its anticipated completion, the
total amount billed to date, the total amount earned but unbilled to date, the
work which remains to be performed, and the anticipated completion date, if any,
or, if a contract has no fixed completion date, the total amount billed to date
and the monthly future revenues with respect to such contract. The contracts
related to the Work in Progress are bona fide contracts of Seller consistent
with Seller's and industry practice. Seller has not been advised in writing or
orally that any customer intends to cancel or change the material terms of any
of the Work in Progress.

5.18. Approval. The board of directors of Seller has approved the execution of
this Agreement and the transactions contemplated hereby.

5.19. Contractors. With respect to contractors, consultants and other
independent personnel providing services to Seller or Seller's customers (the
"Contractors"), Seller has evaluated and classified the Contractors as
independent contractors in accordance with Internal Revenue Service regulations.

5.20. Change in Business. Neither Seller nor Seller's Shareholders has been
informed (i) by any Contractors or personnel currently operating or employed in
the Business that such Contractor or personnel will not continue to provide
their services to the Business on substantially the same terms as at present or
(ii) the business relations currently maintained by Seller with customers,
suppliers and others will not similarly be maintained.

5.21. Related Party Transactions. Except as set forth on Schedule 5.21, neither
any director, officer, employee or Contractor of Seller nor any member of any
such person's immediate family is presently a party to any transaction with
Seller, including any contract, agreement or other arrangement (i) providing for
the furnishing of services by, (ii) providing for the rental of real or personal
property from, or (iii) otherwise requiring payments (other than for services as
officers, directors or employees of Seller) to any such person, or to any
corporation, partnership, trust or other entity in which any such person has a
substantial interest as a shareholder, officer, director, trustee or partner.
Seller is not indebted, directly or indirectly, to any director, officer,
employee or Contractor of Seller for any liability or obligation, whether
arising by reason of ownership, or other written agreement or understanding or
otherwise (other than for services as officers, directors or employees of
Seller) and other than as disclosed on Schedule 5.21.

5.22. Leases. Schedule 5.22 sets forth a complete list, and a brief description
of all of the Seller's leased real property (the "Premises"). The Premises are
used by Seller in the conduct of and as part of the Business. Seller does not
regularly employ any real property in connection with the conduct of the
Business. The Company has a valid leasehold interest in the Premises, free and
clear of all leasehold mortgages, liens, encumbrances, subleases, security
interests, pledges, claims, charges, easements, licenses, rights-of-way,
covenants, conditions, restrictions, options and adverse or equitable claims or
rights whatsoever, except for liens, if any, for property Taxes not yet due.

5.23. Full Disclosure. None of the representations and warranties made by Seller
or Seller's Shareholders contained in this Agreement, including all Schedules
annexed hereto, nor in any statement, document, certificate, schedule, list,
memorandum or other writing (collectively, "Statements") furnished or to be
furnished by Seller or Seller's Shareholders pursuant hereto, is or will be
materially incorrect or incomplete, or contains or will contain an untrue
statement of a material fact, and none of such representations, warranties and
Statements omits or will omit to state a material fact necessary in order to
make the statements contained herein or therein not materially misleading. There
is no material fact known to Seller or Seller's Shareholders that Seller or
Seller's Shareholders have not disclosed in this Agreement or in a Schedule
annexed hereto that has resulted in a Material Adverse Effect or could
reasonably be expected to result in a Material Adverse Effect.

5.24. Improper Payments. Except for non-cash gifts or transfers made in the
ordinary course of business, neither Seller nor any officer, director, employee
of Seller having management authority over any project or who may derive bonus
or commission income from any project or agent of Seller, has at any time made
gifts, gratuities, or payments in any other form, whether in cash, goods or
services, to any persons or entities whatsoever, in payment for, or intended to
encourage, or which resulted in or may have resulted in or had the effect of
obtaining, encouraging or continuing the referral of persons or entities as
customers of any Seller's business, or obtaining, encouraging or extending any
contractual relationship, written or oral, for any of the same; nor has Seller
or any officer, director, employee of Seller having management authority over
any project or who may derive bonus or commission income from any project or
agent of Seller (i) entered into any arrangement, written or oral, under or
pursuant to which bribes, kickbacks, rebates, payoffs or other forms of illegal
or improper payments or remuneration have been or will be made, provided for or
suffered, either directly, or indirectly through agents, brokers, distributors,
dealers or other intermediaries, to any person or entity or (ii) made any
illegal or improper contribution of monies, services or property to any
political party, candidate or elected official for any purpose.

5.25. Sufficiency of Purchased Assets. The Purchased Assets comprise all of the
business, properties, assets and goodwill employed by Seller in connection with
the Business other than the Excluded Assets, and the Purchased Assets are all of
the business, properties, assets and goodwill that are reasonably necessary for
the conduct of the business of Seller as conducted by Seller on or prior to the
date of this Agreement.

5.26. Computer Software. Seller has not received any notice that Seller is not
authorized to use, has or is infringing or has misappropriated any third party's
commercial software rights.

6. REPRESENTATIONS AND WARRANTIES OF BUYER. As a material inducement to Seller
and Seller's Shareholders to enter into this Agreement and consummate the
transactions contemplated hereby, Buyer does hereby make the following
representations and warranties to Seller and Seller's Shareholders, which
representations and warranties are true and correct in all respects at this
date:

6.1. Due Organization of Buyer. Buyer is a corporation duly organized, validly
existing and in good standing under the laws of the State of Nevada and is
qualified to do business and is in good standing in each state where the
properties owned, leased or operated, or the business conducted, by it require
such qualification except where failure to so qualify would not result in a
material adverse effect on Buyer or its business, properties, prospects,
operations, earnings, assets, liabilities or condition (financial or otherwise).
Buyer has the corporate power and authority to own its property and assets and
to carry on its business as now presently conducted.

6.2. Due Authorization. This Agreement has been duly authorized, executed, and
delivered by Buyer, and constitutes a legal, valid, and binding obligation of
Buyer, enforceable in accordance with its terms except as such enforcement may
be limited by applicable bankruptcy, insolvency, moratorium, and other similar
laws relating to, limiting or affecting the enforcement of creditors' rights
generally or by the application of equitable principles. Neither the execution
and delivery of this Agreement, nor the consummation of the transactions
contemplated hereby, nor compliance by Buyer with any of the provisions hereof,
will violate in any material respect any order, writ, injunction or decree of
any court or governmental authority, or violate or conflict with in any material
respect or constitute a default under (or give rise to any right of termination,
cancellation or acceleration under), any provisions of Buyer's Certificate of
Incorporation or Bylaws, the terms or conditions or provisions of any note,
bond, lease, mortgage or agreement of any kind to which Buyer is a party or by
which Buyer or its properties may be bound, or violate in any material respect
any statute, law, rule or regulation applicable to Buyer.

6.3. Brokerage Fees. Buyer has not incurred, and will not incur, any liability
for brokerage or finder's fees or similar charges in connection with the
transactions contemplated by this Agreement.

6.4. Approval. The board of directors of Buyer has unanimously approved the
execution of this Agreement and the transactions contemplated hereby.

6.5. No Approvals Required. No approval, authorization, consent, order or other
action of, or filing with, any person, firm or corporation or any court,
administrative agency or other governmental authority is required in connection
with the execution and delivery by Buyer of this Agreement or the consummation
by it of the transactions contemplated hereby, except to the extent that the
parties may be required to file reports in accordance with relevant regulations
under federal and state securities laws.

7. COVENANTS OF THE PARTIES.

7.1. Nondisclosure. Neither Buyer, Seller nor Seller's Shareholders shall
disclose to the public or to any third party the existence of this Agreement or
the transactions contemplated hereby or any other material non-public
information concerning or relating to the other parties hereto, other than with
the express prior written consent of the other parties hereto, except pursuant
to the terms of Section 7.12 below, as may be required by applicable securities
laws as they pertain to public companies, law or court order or to enforce the
rights of such disclosing party under this Agreement, in which event the
contents of any proposed disclosure shall be discussed with the other party
before release; provided, however, that notwithstanding anything to the contrary
contained in this Agreement, any party hereto may disclose this Agreement to any
of its directors, officers, employees, stockholders, affiliates, agents and
representatives who need to know such information for the sole purpose of
evaluating the transactions contemplated by this Agreement, to any party whose
consent is required in connection with this Agreement, or any regulatory body
where such disclosure is required under federal or state law.

7.2. Confidentiality.

(a) Confidentiality of Buyer-Related Information. With respect to information
concerning Buyer that is made available to Seller and Seller's Shareholders in
connection with this Agreement, Seller and Seller's Shareholders agree that each
shall hold such information in strict confidence, shall not use such information
except for the sole purpose of evaluating the transactions contemplated by this
Agreement and shall not disseminate or disclose any of such information other
than to representatives who need to know such information for the sole purpose
of evaluating the transactions to be undertaken pursuant to this Agreement (each
of whom shall be informed in writing by Seller or Seller's Shareholders of the
confidential nature of such information and directed by Seller or Seller's
Shareholders to treat such information confidentially). The above limitations on
use, dissemination and disclosure shall not apply to information that (i) is
learned by Seller or Seller's Shareholders from a third party entitled to
disclose it; (ii) became known publicly other than through Seller or Seller's
Shareholders or any party who received the same through Seller or Seller's
Shareholders; (iii) is required by law or court order to be disclosed by Seller
or Seller's Shareholders (after notice and opportunity to oppose such
disclosure); or (iv) is disclosed with the express prior written consent thereto
of Buyer. Seller and Seller's Shareholders shall undertake all necessary steps
to ensure that the secrecy and confidentiality of such information will be
maintained in accordance with the provisions of this subparagraph (a).

(b) Confidentiality of Seller-Related Information. With respect to information
concerning Seller that is made available to Buyer in connection with this
Agreement, Buyer agrees that it shall hold such information in strict
confidence, shall not use such information except for the sole purpose of
evaluating the transactions contemplated by this Agreement and shall not
disseminate or disclose any of such information other than to its directors,
officers, employees, shareholders, affiliates, agents and representatives who
need to know such information for the sole purpose of evaluating the
transactions to be undertaken pursuant to this Agreement (each of whom shall be
informed in writing by Buyer of the confidential nature of such information and
directed by Buyer to treat such information confidentially). The above
limitations on use, dissemination and disclosure shall not apply to information
that (i) is learned by Buyer from a third party entitled to disclose it; (ii)
became known publicly other than through Buyer or any party who received the
same through Buyer; (iii) is required by law or court order to be disclosed by
Buyer (after notice and opportunity to oppose such disclosure); or (iv) is
disclosed with the express prior written consent thereto of Seller. Buyer shall
undertake all necessary steps to ensure that the secrecy and confidentiality of
such information will be maintained in accordance with the provisions of this
subparagraph (b).

7.3. Prohibition on Trading in Buyer Stock. Seller and Seller's Shareholders
acknowledge that the United States securities laws prohibit any person who has
received material non-public information concerning the matters which are the
subject matter of this Agreement or concerning Buyer generally from purchasing
or selling the securities of Buyer, or from communicating such information to
any person under circumstances in which it is reasonably foreseeable that such
person is likely to purchase or sell securities of Buyer. Accordingly, Seller
and Seller's Shareholders each instruct and direct their respective officers and
employees not to purchase or sell any securities of Buyer, or communicate such
material non-public information to any other person under circumstances in which
it is reasonably foreseeable that such person is likely to purchase or sell
securities of Buyer, until no earlier than 72 hours following the filing of a
Current Report on Form 8-K with the SEC announcing the Closing pursuant to this
Agreement.

7.4. Expenses. Each party shall bear its own expenses in connection with the
transactions contemplated by this Agreement.

7.5. Parties' Access to Records After Closing. Seller and Seller's Shareholders
acknowledge that all customer lists, records and other information pertaining to
Seller, the Business or its customers that are included in the Purchased Assets
are proprietary, confidential information and that on and after the Closing, all
such lists, records and information shall be the property of Buyer. Each of the
parties agrees to preserve until December 31, 2011, all records in its
possession relating to any of the assets, liabilities or business of Seller for
all time periods hereof ended on or prior to the Closing Date, or to the
transactions contemplated herein. In the event that either party needs access to
such records in the possession of the other party relating to any of the assets,
liabilities or business of Seller or to the transactions contemplated herein for
the purpose of preparing income tax returns or for complying with any audit
request, subpoena or other investigative demand by any governmental authority or
for any civil litigation or any other legitimate purpose not injurious to the
other party, each party will allow representatives of the other party reasonable
access to such records during normal business hours at such party's place of
business for the sole purpose of obtaining information for use as aforesaid and
will permit such other party to make extracts and copies thereof as may be
necessary or convenient and, if required for such purpose, to have access to and
copies of original documents (at the requesting party's expense).

7.6. Prorations.

(a) With respect to those charges (including, without limitation, lease
payments, real estate taxes, personal property taxes, water and sewer rents, if
any, utility charges, telephone bills, and similar items) which relate to a
period both prior to and subsequent to the Effective Date, any invoices or
statements received by either party which cover such period (expressly including
any bills for Michigan personal property tax previously received and paid by
Seller) shall, within fifteen days after the Closing Date, be prorated by Buyer
in good faith between Buyer and Seller according to the number of working or
calendar days, as applicable, in the period covered by such invoice or statement
during which Buyer and Seller, respectively, operated the Business and each
shall pay its allocable share thereof, either directly or by way of
reimbursement if the other party shall have paid the same, upon receipt of an
invoice therefor or evidence of such payments, as applicable.

(b) With respect to the pre-paid expenses as set forth on Column "C" of the
Closing Balance Sheet, within fifteen days after the Closing Date, Buyer shall
determine, in its discretion, whether the pre-paid expenses can be utilized by
and provide a benefit to Buyer after the Closing Date and, to the extent that
such pre-paid expenses can be so utilized, such pre-paid expenses shall be
identified by Buyer as "Approved Pre-paid Expenses" and Buyer shall deliver
written notice setting forth in reasonable detail the Approved Pre-paid Expenses
together with payment for such Approved Pre-paid Expenses to Seller by wire
transfer of immediately available funds.

(c) At the Closing, Seller and Buyer shall adjust as necessary for any and all
wages and payroll taxes (i) either paid by Seller for periods subsequent to the
Closing Date for the benefit of Buyer and/or those employees of Seller who are
employed by Buyer subsequent to the Closing Date or (ii) incurred by Seller and
paid by Buyer and relating to periods prior to the Closing Date, and shall
adjust for other employment-related expenses with respect to such employees.

7.7. Bulk Sales and Transfer Taxes.

(a) Buyer hereby waives compliance by Seller or Seller's Shareholders with the
requirements of any and all applicable laws relating to bulk sales and
transfers; and as consideration for such waiver, Seller and Seller's
Shareholders jointly and severally agree to indemnify Buyer for any loss
resulting from any claim by any creditor of Seller under any such law.

(b) All transfer taxes of any kind, including state and local sales taxes, if
any, and any and all recording and/or filing fees arising from or in connection
with the transactions contemplated hereunder, shall be paid by Seller.

7.8. Further Assurances; Post Closing Assistance. At the Closing, and from time
to time thereafter, Seller and Seller's Shareholders shall, at the request of
Buyer, take all action necessary to put Buyer in actual possession and operating
control of the Purchased Assets, and shall execute and deliver to Buyer such
further instruments of assignment, consent, transfer and conveyance, and take
such other actions, as Buyer or counsel for Buyer may reasonably request, in
order more effectively to transfer and convey the Purchased Assets and the
Business to Buyer. Seller shall, at the request of Buyer, cooperate with Buyer
in sending a notice to Seller's customers and suppliers to assist Buyer in
continuing to enjoy good relationships with such customers and suppliers.
Without limiting the foregoing, with respect to any Contract for which a consent
or assignment is required but not obtained, Seller and Seller's Shareholders
shall, at the request of Buyer and at their own expense, cooperate with Buyer in
any reasonable arrangement designed to provide for Buyer the benefits and
obligations of or under any such Contract, including enforcement for the benefit
of Buyer of any and all rights of Seller against a third party thereto arising
out of the breach or cancellation thereof by such third party.

7.9. Bonuses. Notwithstanding any other provision of this Agreement, Seller
acknowledges and agrees that 100% of all bonuses for employees of Seller
relating to fiscal year 2007 shall be paid and/or accrued as of or prior to the
Effective Date, and under no circumstances shall Buyer be responsible for paying
any such bonuses.

7.10. Accounts Receivable. The parties acknowledge that Seller will retain and
not transfer and sell to Buyer all of Seller's accounts receivable related to
services provided before the Closing Date and that after the Closing Date Buyer
expects to provide services to the same customers serviced by Seller. If either
party receives any payment related to services actually performed by the other
party, the receiving party shall, within three (3) business days, deliver such
payment to the other party. If a dispute arises between the parties as to the
appropriate recipient of a payment from a customer, the parties shall consult
with the customer as to the services and/or invoice for which the customer
intended to pay and the parties shall abide by such customer's determination and
immediately thereafter transfer an amount equal to any such payment to the
appropriate party as identified by the customer. In no event shall either party
disparage the other party to any customer in connection with the collection of
any accounts receivable. Buyer will assist the Seller in the collection of
accounts receivables arising from the operation of the Business before the
Closing Date and, upon the request of the Seller, Buyer will use reasonable
efforts consistent with Buyer's customary practices to collect such accounts
receivable from the customer; provided, however, that Buyer shall have no
obligation to commence any legal proceeding on behalf of Seller or incur any
incremental increase in costs in connection with Buyer's efforts to collect such
accounts receivable.

7.11. Dissolution. Promptly after the Closing Date, Seller's Shareholders shall
take all actions necessary to effect the dissolution of Seller under and in
accordance with applicable state law. Upon request of Buyer, Seller's
Shareholders shall promptly provide Buyer with copies of any and all documents
prepared to effect dissolution of Seller.

7.12. Seller's Employees. Immediately upon Closing, Seller's Shareholders shall
terminate the employment of all of Seller's employees and shall, together with
and in consultation with Buyer, notify Seller's employees that the transaction
contemplated under the terms of this Agreement has occurred. After such notice
is provided, Buyer will extend offers of employment to certain of Seller's
employees (as determined by Buyer in its sole discretion) on an "at-will" basis
and, as a condition to employment with Buyer, will request that each of Seller's
employees offered employment execute and deliver the Confirmation of Employment
Agreement in the form as set forth in Exhibit "C" attached hereto. Seller shall
be solely responsible to pay any severance pay to which Seller's employees may
be entitled upon their termination and Buyer shall have no obligation to pay any
severance or accrue or acknowledge any "service time" or seniority for any of
Seller's employees which Buyer elects to hire. Buyer shall have no obligation to
pay severance to any of Seller's employees hired by Buyer and terminated by
Buyer within one year after the Closing Date.

8. THE CLOSING.

8.1. Time and Place. The closing of the transactions contemplated by this
Agreement (the "Closing") has occurred on March 19, 2008 (the "Closing Date") by
an exchange of signature pages by fax and/or electronic mail and the delivery of
original documents and instruments by reputable overnight courier.

8.2. Deliveries by Seller. At the Closing and against the deliveries to be made
by Buyer pursuant to Section 8.3, Seller has delivered the following to Buyer:

(a) a certified copy of resolutions of the board of directors of Seller
authorizing the making, execution and delivery of this Agreement and each of the
agreements and instruments executed in connection herewith or delivered pursuant
hereto and the consummation of the transactions contemplated hereby, together
with an incumbency certificate, each of which shall be certified as true,
complete and correct as of the Closing Date by the Secretary of Seller;

(b) a bill of sale in form and substance reasonably satisfactory to Buyer
pursuant to which Seller transfers and conveys to Buyer all of Seller's right,
title and interest in and to the tangible Purchased Assets;

(c) an assignment and assumption agreement in form and substance reasonably
satisfactory to Buyer pursuant to which Seller transfers and assigns to Buyer
all of Seller's right, title and interest in and to the intangible Purchased
Assets and Buyer assumes from Seller the Assumed Liabilities;

(d) executed consents to assignment from each of the parties to each of the
Contracts other than Seller to the extent a consent to the assignment of such
Contract by Seller to Buyer is required by the terms of such Contract or is
otherwise required by law;

(e) a good standing certificate with respect to Seller issued by the Secretary
of State of the State of Michigan within one (1) week prior to the Closing Date;

(f) good standing certificates with respect to Seller issued by the Secretary of
State of each state set forth on Schedule 5.3 within one (1) week prior to the
Closing Date;

(g) if any of the Purchased Assets are encumbered by any Lien, a release of all
such Liens in form and substance acceptable to Buyer other than an Assumed
Liability;

(h) the Employment, Non-competition, and Non-solicitation Agreement with Dale
Mansour in the form as set forth in Exhibit "A" attached hereto;

(i) the Employment, Non-competition, and Non-solicitation Agreement with Keith
Brophy in the form as set forth in Exhibit "B" attached hereto;

(j) the opinion of Weisman Young Schloss & Ruemenapp, P.C., counsel to Seller,
in form and substance reasonably satisfactory to Buyer as set forth in Exhibit
"D" attached hereto;

(k) original copies of such consents, approvals, licenses, permits,
authorizations, qualifications and orders of governmental authorities as are
necessary for the consummation of the transactions contemplated by this
Agreement;

(l) original copy of an amendment of Seller's Certificate of Incorporation
which, upon filing in the office of the Secretary of State of Michigan, will
effectively change Seller's corporate name to a name which does not include the
words "NuSoft" or "NuSoft Solutions"; and

(m) such other documents as are reasonably requested by Buyer in connection with
the consummation of the transactions contemplated hereto.

8.3. Deliveries by Buyer. Against the deliveries to be made by Seller pursuant
to Section 8.2,

(a) At the Closing, Buyer has delivered or will deliver to Seller the following:

(i) the portion of the Purchase Price to be paid at Closing to Huntington Bank;
(ii) a certified copy of resolutions of the board of directors of Buyer
authorizing the making, execution and delivery of this Agreement and each of the
agreements and instruments executed in connection herewith or delivered pursuant
hereto and the consummation of the transactions contemplated hereby;

(iii) fully executed counterparts to any of the instruments to be delivered by
Seller pursuant to Section 8.2 that require execution by Buyer; and

(iv) such other documents as are reasonably requested by Seller in connection
with the consummation of the transactions contemplated hereby.

(b) One week after the Closing Date, Buyer shall issue the portion of the
Purchase Price as set forth in Section 3.1(c) below, and will issue the Stock as
set forth in Section 3.1(b), below.

9. INDEMNIFICATION.

9.1. Seller and Seller's Shareholders. Seller and Seller's Shareholders, jointly
and severally, shall indemnify, defend and hold harmless Buyer and its
stockholders, directors, officers, employees, agents and control persons
("Buyer's Indemnitees") from and against any and all demands, claims, actions or
causes of action, judgments, assessments, losses, liabilities, damages or
penalties and reasonable attorneys' fees and related disbursements
(collectively, "Claims") incurred by any of Buyer's Indemnitees that arise out
of or result from (i) a misrepresentation, breach of warranty, or breach or
non-fulfillment of any covenant of Seller or Seller's Shareholders contained
herein or in the Schedules annexed hereto or in any other Statements furnished
or to be furnished by Seller or Seller's Shareholders pursuant hereto or in
connection with the transactions contemplated hereby or thereby, whether
asserted by Buyer in its own right or asserted against Buyer by any third-party,
unless Buyer had written notice of such misrepresentation or breach and agreed,
in writing, to waive the same, (ii) any claims of third-parties arising out of
or relating to the ownership or operation of the Purchased Assets or the
Business by Seller prior to the Closing, (iii) any liabilities of Seller that
are not assumed by Buyer pursuant to Section 4.1, whether accrued, absolute,
contingent or otherwise, or (iv) the conduct of Seller's business (other than
the Business acquired by Buyer) after the Closing Date.

9.2. Buyer. Buyer shall indemnify, defend and hold harmless Seller and Seller's
Shareholders from and against any and all Claims incurred by Seller and/or
Seller's Shareholders that arise out of or result from (i) a misrepresentation,
breach of warranty or breach or non-fulfillment of any covenant of Buyer
contained herein or in the Schedules annexed hereto; (ii) any claims of
third-parties arising out of or relating to the ownership or operation of the
Purchased Assets or the Business by Buyer after the Closing Date, or (iii) any
of the Assumed Liabilities.

9.3. Methods of Asserting Claims for Indemnification. All claims for
indemnification under this Agreement shall be asserted as follows:

(a) Third Party Claims. (i) In the event that any Claim for which a party (the
"Indemnitee") would be entitled to indemnification under this Agreement is
asserted against or sought to be collected from the Indemnitee by a third party,
the Indemnitee shall promptly notify the other party (the "Indemnitor") of such
Claim, specifying the nature thereof, the applicable provision in this Agreement
or other instrument under which the Claim arises, and the amount or the
estimated amount thereof (the "Claim Notice"). The Indemnitor shall have thirty
(30) days (or, if shorter, a period to a date not less than ten (10) days prior
to when a responsive pleading or other document is required to be filed but in
no event less than ten (10) days from delivery of the Claim Notice) (the "Notice
Period") to notify the Indemnitee (i) whether or not it disputes liability
hereunder with respect to such Claim and (ii) whether or not it desires to
control the defense and settlement of such Claim employing counsel of its
choice, the fees and expenses of which shall be at the Indemnitor's sole cost
and expense, which such counsel must be reasonably satisfactory to the
Indemnitee. Notwithstanding the foregoing, the Indemnitee shall have the sole
right to control the defense and settlement of a Claim employing counsel of its
choice in its sole discretion if (i) the Indemnitor has disputed liability
hereunder with respect to such Claim, (ii) the Indemnitor has not elected to
control the defense and settlement of such Claim or (iii) the Indemnitee shall
have been advised by its counsel that such Claim, if successful, would be
reasonably likely to result in the imposition of injunctive or other equitable
relief against the Indemnitee and, in each such case, all costs and expenses of
such proceedings, including the fees and expenses of counsel, and the amount of
any settlement or judgment in connection with such Claim, shall be at the
Indemnitor's sole cost and expense if it shall thereafter be found that such
Claim was subject to indemnification by the Indemnitor hereunder.

                  (ii).....If the Indemnitor elects to defend the Claim by
appropriate proceedings, such proceedings shall be promptly settled or
prosecuted to a final conclusion in such a manner as to minimize any risk of
additional damage to the Indemnitee and all costs and expenses of such
proceedings, including the fees and expenses of counsel, and the amount of any
settlement or judgment, shall be paid by the Indemnitor; provided, however, that
(x) the Indemnitor shall not, without the written consent of the Indemnitee,
settle or compromise any Claim or consent to the entry of any judgment unless
(A) there is no finding or admission of any violation of law by or on behalf of
the Indemnitee, (B) the sole relief provided is monetary damages that are paid
in full by the Indemnitor, (C) the settlement or compromise includes the giving
by the claimants/plaintiffs to the Indemnitee of an unconditional release from
all liabilities in respect of such Claim and (D) the settlement or compromise
does not impose injunctive or other equitable relief upon the Indemnitee, and
(y) the Indemnitee shall have no liability with respect to any settlement or
compromise of any Claim effected without its consent. If the Indemnitee desires
to employ counsel separate from the counsel employed by the Indemnitor to
participate in any defense or settlement of a Claim that the Indemnitor has
elected to defend, it may do so at its sole cost and expense; provided, however,
that such counsel for the Indemnitee shall be at the Indemnitor's sole cost and
expense if the Indemnitee shall have been advised by such counsel that under
applicable standards of professional conduct it is reasonably likely to
constitute a conflict of interest for the Indemnitor's counsel to represent both
the Indemnitor and the Indemnitee.

(b) Non-Third Party Claims. In the event that the Indemnitee shall have a Claim
for indemnification hereunder that does not involve a Claim being asserted
against it or sought to be collected by a third party, the Indemnitee shall
promptly send a Claim Notice with respect to such Claim to the Indemnitor. If
the Indemnitor does not notify the Indemnitee within the Notice Period that it
disputes such Claim, the Indemnitor shall pay the amount thereof to the
Indemnitee. If the Indemnitor delivers written notice within thirty (30) days
after receipt of the Claim Notice that Indemnitor disputes such Claim, the
Indemnitor and Indemnitee will attempt, in good faith, to negotiate a resolution
of such dispute, and, if not resolved within the Notice Period, such dispute
shall be resolved subject to the terms of Section 10 of this Agreement.

(c) Cooperation of Parties. If either party chooses to defend or participate in
the defense of any liability, it shall have the right to receive from the other
party, subject to any restriction of applicable law or that may be necessary to
preserve the privilege of attorney-client communications, any books, records or
other documents within such other party's control that are necessary or
appropriate for such defense.

9.4. Right of Set Off. The amount of any Claims as to which Buyer is entitled to
indemnification hereunder may be set off by Buyer against any payments due from
Buyer to Seller after the Closing Date expressly including the Deferred
Consideration Payment(s) or the Earn-out Growth Payment(s); provided, that, the
sum set forth in Section 3.1(c), shall not be subject to set-off and;

9.5. Separate Obligations. The rights of Buyer and Seller hereunder are
independent of and in addition to such rights and remedies of an equitable
nature as either of them may have (other than actions or proceedings seeking
monetary damages) for any misrepresentation, breach of warranty or failure to
fulfill any agreement or covenant hereunder on the part of any of Seller,
Seller's Shareholders or Buyer, including the right to seek either specific
performance or rescission and restitution, none of which rights shall be
affected or diminished hereby.

9.6. Limitations on Indemnity.

         (a) Notwithstanding anything to the contrary provided elsewhere in this
Agreement, the obligations of Seller and Seller's Shareholders under this
Agreement to indemnify Buyer's Indemnitees with respect to any Claims pursuant
to Section 9.1 shall be of no force and forever barred unless the Buyer's
Indemnitees have given the Seller and Seller's Shareholders notice of such claim
prior to May 1, 2010, provided that there shall be no time limit for Claims (i)
arising from the Seller's or Seller Shareholders' intentionally and knowingly
making any untrue statement of a material fact or to failing to state a material
fact necessary in order to make the statements made, in the light of the
circumstances under which they were made, not misleading, (ii) arising from
Seller's or Seller Shareholders' wanton misconduct, (iii) described in Section
9.1(ii) of this Agreement, and (iv) made for a breach of the representations and
warranties contained in Sections 5.1 (Capitalization; Seller's Shareholders),
5.3 (Due Organization), 5.4 (Due Authorization), 5.8 (Taxes), 5.10 (Title to
Property and Related Matters), 5.12 (Brokerage Fees), 5.13 (Consents Required),
5.14 (Employees; Employee Benefit Plans), 5.18 (Approval), 5.19 (Contractors),
5.22 (Related Party Transactions), 5.23 (Improper Payments), other than the
statute of limitations applicable thereto.

         (b) No Claim for indemnification pursuant to Section 9 may be made
unless and until the Buyer's Indemnitees have incurred, sustained or suffered
Damages in respect of which the Seller and Seller's Shareholders would be liable
under this Section 9 in excess of Twenty Thousand ($20,000) Dollars in the
aggregate (the "Threshold Amount"), at which time and thereafter only such
amount in excess of the Threshold Amount may be claimed and recovered as
provided in this Agreement.

10. EXCLUSIVE JURISDICTION. Any party bringing a legal action or proceeding
against any other party arising out of or relating to this Agreement shall bring
the legal action or proceeding in the United States District Court for the
Eastern District of Pennsylvania or in any court of the Commonwealth of
Pennsylvania sitting in Philadelphia, Pennsylvania. Each party to this Agreement
submits to the exclusive jurisdiction of such courts and their respective
appellate courts for the purposes of all legal actions and proceedings arising
out of or relating to this Agreement. Each party further waives any objection to
the laying of venue for such suit, action or proceeding in such courts, and any
claim that any action or proceeding brought in any such court has been brought
in an inconvenient forum.

11.                                                  NOTICES. All notices or
                                                     other communications
                                                     required or permitted
                                                     hereunder shall be in
                                                     writing and shall be deemed
                                                     to have been duly given if
                                                     delivered in person or sent
                                                     by overnight delivery,
                                                     confirmed telecopy or
                                                     prepaid first class
                                                     registered or certified
                                                     mail, return receipt
                                                     requested, to the following
                                                     addresses or telecopy
                                                     numbers, or such other
                                                     addresses or telecopy
                                                     numbers as are given to the
                                                     other parties to this
                                                     Agreement in the manner set
                                                     forth herein:

11.1.             If to Buyer, to:          RCM Technologies, Inc.
                                            2500 McClellan Avenue, Suite 350
                                            Pennsauken, NJ   08109
                                            Attn: Leon Kopyt
                                            Telecopy No.: (609) 488-8833

                           With a copy to:  White and Williams LLP
                                            1800 One Liberty Place
                                            Philadelphia, PA   19103
                                            Attn: John Pauciulo, Esquire
                                            Telecopy No.: (215) 864-7123

                           If to Seller to: NuSoft Solutions, Inc.
                                                      ]
                                            [                              ]
                                            Attn:  Dale Mansour
                                            Telecopy No.:  [                ]

              With a simultaneous       Weisman Young Schloss & Ruemenapp, P.C.
              constitute notice) to:    30100 Telegraph Road, Ste. 428
                                        Bingham  Farms, MI 48025
                                        Attn:  Richard H. Schloss, Esq.
                                        Telecopy No.:  248-258-8927

          Any such notices shall be effective when delivered in person or sent
by confirmed telecopy, one business day after being sent by overnight delivery
or three (3) business days after being sent by registered or certified mail. Any
of the foregoing addresses may be changed by giving notice of such change in the
foregoing manner, except that notices for changes of address shall be effective
only upon receipt.

12. MISCELLANEOUS.

12.1. Nature of Representations and Warranties. Subject to the provisions of
Section 12.2, all of the parties hereto are executing and carrying out the
provisions of this Agreement in reliance on the representations, warranties,
covenants and agreements contained in this Agreement, and any investigation that
they might have made or any other representations, warranties, covenants,
agreements, promises or information, written or oral, made by the other party or
parties or any other person shall not be deemed a waiver of any breach of any
such representation, warranty, covenant or agreement.

12.2. Survival of Representations. All covenants, agreements, representations
and warranties made herein shall survive the Closing Date. All covenants and
agreements by or on behalf of the parties hereto that are contained or
incorporated in this Agreement shall bind and inure to the benefit of the
successors and assigns of all parties hereto.

12.3. Entire Agreement. This Agreement constitutes the entire agreement between
the parties hereto with respect to the subject matter hereof. It supersedes all
prior negotiations, letters and understandings relating to the subject matter
hereof; provided, however, that the confidentiality and non-disclosure agreement
between the parties shall remain in full force and effect until the Closing has
actually occurred.

12.4. Amendment. This Agreement may not be amended, supplemented or modified in
whole or in part except by an instrument in writing signed by the party or
parties against whom enforcement of any such amendment, supplement or
modification is sought.

12.5. Assignment. This Agreement may not be assigned by any party hereto, nor
may any provision hereof be waived, without the prior written consent of the
other parties.

12.6. Choice of Law. This Agreement shall be interpreted, construed and enforced
in accordance with the laws of the Commonwealth of Pennsylvania, without regard
to the conflicts of law principles thereof.

12.7. Headings. The section and subsection headings in this Agreement are
inserted for convenience only and shall not affect in any way the meaning or
interpretation of this Agreement.

12.8. Construction. The parties hereto and their respective legal counsel
participated in the preparation of this Agreement, therefore, this Agreement
shall be construed neither against nor in favor of any of the parties hereto,
but rather in accordance with the fair meaning thereof.

12.9. Effect of Waiver. The failure of any party at any time or times to require
performance of any provision of this Agreement will in no manner affect the
right to enforce the same. The waiver by any party of any breach of any
provision of this Agreement will not be construed to be a waiver by any such
party of any succeeding breach of that provision or a waiver by such party of
any breach of any other provision.

12.10. Severability. The invalidity, illegality or unenforceability of any
provision or provisions of this Agreement will not affect any other provision of
this Agreement, which will remain in full force and effect, nor will the
invalidity, illegality or unenforceability of a portion of any provision of this
Agreement affect the balance of such provision. In the event that any one or
more of the provisions contained in this Agreement or any portion thereof shall
for any reason be held to be invalid, illegal or unenforceable in any respect,
this Agreement shall be reformed, construed and enforced as if such invalid,
illegal or unenforceable provision had never been contained herein.

12.11. Binding Nature. This Agreement will be binding upon and will inure to the
benefit of any successor or successors of the parties hereto.

12.12. No Third-Party Beneficiaries. No person shall be deemed to possess any
third-party beneficiary right pursuant to this Agreement. It is the intent of
the parties hereto that no direct benefit to any third party is intended or
implied by the execution of this Agreement.

12.13. Counterparts. This Agreement may be executed in one or more counterparts,
each of which will be deemed an original and all of which together will
constitute one and the same instrument.

12.14. Facsimile Signature. This Agreement may be executed and accepted by
facsimile signature and any such signature shall be of the same force and effect
as an original signature.

12.15. Rules of Construction. Unless the context of this Agreement clearly
requires otherwise, references to the plural include the singular, references to
the singular include the plural, the term "including" is not limiting, and the
term "or" has, except where otherwise indicated, the inclusive meaning
represented by the phrase "and/or." The words "hereof," "herein," "hereby,"
"hereunder" and similar terms in this Agreement refer to this Agreement as a
whole and not to any particular provision of this Agreement. Section,
subsection, clause, schedule and exhibit references are to this Agreement unless
otherwise specified. Any reference to this Agreement shall include all
alterations, amendments, changes, extensions, modifications, renewals,
replacements, substitutions, and supplements thereto and thereof, as applicable.



<PAGE>



                  [Signature Page to Asset Purchase Agreement]

                  IN WITNESS WHEREOF, the parties have executed this Agreement
                  as of the day and year first above written.

<TABLE>
<CAPTION>
<S>     <C>    <C>    <C>    <C>    <C>                    <C>

                                                           BUYER:

                                                           RCM TECHNOLOGIES, INC.


                                                           By:               .........
                                                              ------------------------
                                                           Name:             .........
                                                                ----------------------
                                                           Title:            .........
                                                                 ---------------------

                                                           SELLER:

                                                           NUSOFT SOLUTIONS, INC.


                                                           By:               .........
                                                              ------------------------
                                                           Name:             .........
                                                                ----------------------
                                                           Title:            .........
                                                                 ---------------------


                                                           SELLER'S SHAREHOLDERS:



                                                                             .........
                                                           Dale Mansour

                                                                             .........
                                                           Keith Brophy
</TABLE>







</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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