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Proc-Type: 2001,MIC-CLEAR
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<SEC-DOCUMENT>0000700841-08-000030.txt : 20080807
<SEC-HEADER>0000700841-08-000030.hdr.sgml : 20080807
<ACCEPTANCE-DATETIME>20080807103234
ACCESSION NUMBER:		0000700841-08-000030
CONFORMED SUBMISSION TYPE:	10-Q
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20080628
FILED AS OF DATE:		20080807
DATE AS OF CHANGE:		20080807

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:		08997000

	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>form10q062808.htm
<DESCRIPTION>FORM 10Q 062808
<TEXT>
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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><br>
                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></p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 11pt">(Mark One)</font></p>

                <p></p>

                <p></p>

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                            <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>
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                <br>
                <br>

                <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">For the quarterly period ended</font> <b><font style="FONT-SIZE: 11pt">June 28, 2008</font></b><br>
                &nbsp;</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="center"><b><font style="FONT-SIZE: 11pt">OR</font></b></p>

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                            <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>
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                        <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>
                <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</font> <font style="FONT-WEIGHT: normal; FONT-SIZE: 11pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font> <font style="FONT-WEIGHT: normal; FONT-SIZE: 11pt">to</font>
                <font style="FONT-WEIGHT: normal; FONT-SIZE: 11pt">&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>
                &nbsp;</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: 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)<br>
                &nbsp;</font></p>

                <p></p>

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                            <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>
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                            <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>
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                        <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>
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                <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) 356-4500</font></u></b><br>
                <font style="FONT-SIZE: 11pt">(Registrant's Telephone Number, Including Area Code)</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">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>

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                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">YES</font></p>
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                        <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="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>
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                        <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="36">&nbsp;</td>

                        <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" 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="bottom" width="30">&nbsp;</td>
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                <br>
                <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>

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                            <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>
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                <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>

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                        <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" 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="bottom" width="30">&nbsp;</td>

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

                        <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" 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="bottom" 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>
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                <br>
                <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 the number of shares outstanding of the Registrant's class of common stock, as of the latest practicable date.<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">Common Stock, $0.05 par value,</font> <font style="FONT-SIZE: 10pt">12,774,026 shares outstanding as of</font> <font style="FONT-SIZE: 10pt">August 7, 2008.</font></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></p>

                <p></p>

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                            <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>

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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>Page</b></p>
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                            <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>
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                        <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="48" colspan="2">&nbsp;</td>

                        <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" 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 June 28, 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="bottom" width="18">&nbsp;</td>

                        <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; 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="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="bottom" width="24">&nbsp;</td>

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

                        <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="444">&nbsp;</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="54">&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="24">&nbsp;</td>

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

                        <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" 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 Twenty-Six Weeks Ended June 28, 2008 and June 30, 2007</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="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="bottom" width="24">&nbsp;</td>

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

                        <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="444">&nbsp;</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="54">&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="24">&nbsp;</td>

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

                        <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" 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 June 28, 2008 and June 30, 2007</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="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="bottom" width="24">&nbsp;</td>

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

                        <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="444">&nbsp;</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="54">&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="24">&nbsp;</td>

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

                        <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" 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 Twenty-Six Weeks Ended June 28, 2008 and June 30, 2007</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="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="bottom" width="24">&nbsp;</td>

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

                        <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="444">&nbsp;</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="54">&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="24">&nbsp;</td>

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

                        <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" 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 Twenty-Six Weeks Ended June 28, 2008 and June 30, 2007</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="54">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt">8</font></p>
                        </td>
                    </tr>

                    <tr>
                        <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="48" colspan="2">&nbsp;</td>

                        <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="444">&nbsp;</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="54">&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="24">&nbsp;</td>

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

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

                        <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; 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="center"><font style="FONT-SIZE: 10pt">10</font></p>
                        </td>
                    </tr>

                    <tr>
                        <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="48" colspan="2">&nbsp;</td>

                        <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="444">&nbsp;</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="54">&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="24">&nbsp;</td>

                        <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" 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;and Results of Operations</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="54">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt">26</font></p>
                        </td>
                    </tr>

                    <tr>
                        <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="24">&nbsp;</td>

                        <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="468" colspan="2">&nbsp;</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="54">&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="24">&nbsp;</td>

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

                        <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; 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="center"><font style="FONT-SIZE: 10pt">41</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="bottom" width="24">&nbsp;</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="468" colspan="2">&nbsp;</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="54">&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="24">&nbsp;</td>

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

                        <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; 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="center"><font style="FONT-SIZE: 10pt">41</font></p>
                        </td>
                    </tr>

                    <tr>
                        <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="24">&nbsp;</td>

                        <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="468" colspan="2">&nbsp;</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="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="bottom" 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="bottom" 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="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="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="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="bottom" width="18">&nbsp;</td>

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

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

                        <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; 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="center"><font style="FONT-SIZE: 10pt">42</font></p>
                        </td>
                    </tr>

                    <tr>
                        <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="24">&nbsp;</td>

                        <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="468" colspan="2">&nbsp;</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="54">&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="24">&nbsp;</td>

                        <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" 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 1A</font></b> <font style="FONT-SIZE: 10pt">-</font> <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="bottom" width="18">&nbsp;</td>

                        <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; 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="center"><font style="FONT-SIZE: 10pt">42</font></p>
                        </td>
                    </tr>

                    <tr>
                        <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="24">&nbsp;</td>

                        <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="468" colspan="2">&nbsp;</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="54">&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="24">&nbsp;</td>

                        <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" 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">&ndash; Unregistered Sales of Equity Securities and Use of Proceeds</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="54">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt">42</font></p>
                        </td>
                    </tr>

                    <tr>
                        <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="24">&nbsp;</td>

                        <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="468" colspan="2">&nbsp;</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="54">&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="24">&nbsp;</td>

                        <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" 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">I</font></b><b><font style="FONT-SIZE: 10pt">tem 4 -</font></b> <font style="FONT-SIZE: 10pt">Submission of Matters to a Vote of Security Holders</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="54">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt">42</font></p>
                        </td>
                    </tr>

                    <tr>
                        <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="24">&nbsp;</td>

                        <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="468" colspan="2">&nbsp;</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="54">&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="24">&nbsp;</td>

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

                        <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; 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="center"><font style="FONT-SIZE: 10pt">43</font></p>
                        </td>
                    </tr>

                    <tr>
                        <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="24">&nbsp;</td>

                        <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="468" colspan="2">&nbsp;</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="54">&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="24">&nbsp;</td>

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

                        <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; 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="center"><font style="FONT-SIZE: 10pt">44</font></p>
                        </td>
                    </tr>

                    <tr>
                        <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="492" colspan="3">&nbsp;</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="54">&nbsp;</td>
                    </tr>
                </table>
                <br>
                <br>

                <p></p>

                <p></p>
                <!-- NEXT PAGE SECTION BREAK  -->

                <div title="PAGENUM" style="MARGIN-TOP: 12pt" align="center">
                    <a name="PAGENUM"><font face="Times New Roman, Times, serif">2</font></a>
                </div>

                <div title="EE+ Page Break" style="FONT-SIZE: 1pt; PAGE-BREAK-AFTER: always; WIDTH: 100%; HEIGHT: 1px">
                </div>

                <p></p>

                <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>
                June 28, 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</font></i> <i><font style="FONT-SIZE: 10pt">amounts</font></i><i><font style="FONT-SIZE: 10pt">)</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>
                        <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">June 28,</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>
                        <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">$4,240</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 $1,450</font> <font style="FONT-SIZE: 10pt">(June 28, 2008)</font> <font style="FONT-SIZE: 10pt">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">56,445</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 $1,486 at June 28, 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">2,240</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">2,371</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">65,296</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">10,370</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">5,035</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">5,335</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 June 28, 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">159</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">46,353</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 $1,051(June 28, 2008)</font> <font style="FONT-SIZE: 10pt">and $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">3,584</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">50,096</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">$120,727</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>
                <br>
                <br>

                <p></p>

                <div title="PAGENUM" style="MARGIN-TOP: 12pt" align="center">
                    <a name="PAGENUM"><font face="Times New Roman, Times, serif">3</font></a>
                </div>

                <div title="EE+ Page Break" style="FONT-SIZE: 1pt; PAGE-BREAK-AFTER: always; WIDTH: 100%; HEIGHT: 1px">
                </div>

                <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>
                June 28, 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</font></i> <i><font style="FONT-SIZE: 10pt">amounts</font></i><i><font style="FONT-SIZE: 10pt">)</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>
                        <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">June 28,</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>
                        <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 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">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">$10,000</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>
                        <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">7,014</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 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">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">7,277</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>
                        <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">1,715</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 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="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>
                        <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 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="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">26,006</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>
                        <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 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">&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">
                            <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 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">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>
                        <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 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">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>
                        <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">12,774,026</font> <font style="FONT-SIZE: 10pt">and 12,058,689 shares issued and outstanding<br>
                            at</font> <font style="FONT-SIZE: 10pt">June 28, 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">639</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">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 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">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">106,885</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>
                        <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">1,417</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 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="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">(14,220</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>
                        <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: 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">94,721</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>
                        <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: 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">$120,727</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>
                <br>
                <br>

                <p></p>

                <div title="PAGENUM" style="MARGIN-TOP: 12pt" align="center">
                    <a name="PAGENUM"><font face="Times New Roman, Times, serif">4</font></a>
                </div>

                <div title="EE+ Page Break" style="FONT-SIZE: 1pt; PAGE-BREAK-AFTER: always; WIDTH: 100%; HEIGHT: 1px">
                    <hr width="100%" noshade>
                </div>

                <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>
                Twenty-Six Weeks Ended June 28, 2008 and June 30, 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"><b><font style="FONT-SIZE: 10pt">(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</font></i> <i><font style="FONT-SIZE: 10pt">amounts</font></i><i><font style="FONT-SIZE: 10pt">)</font></i></p>

                <p></p>

                <p></p>

                <table cellspacing="0" cellpadding="0" width="624" border="0">
                    <tr>
                        <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">June 28,<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">June 30,<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">$104,125</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">$111,339</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">76,677</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">85,004</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">27,448</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">26,335</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">22,626</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">20,722</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 &ndash; 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">596</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">560</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">325</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">160</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">29,637</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">21,442</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">(2,189</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">4,893</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 (expense) income</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 (expense) income, 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">(41</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">1</font></p>
                        </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) gain 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">(5</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">11</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">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">(46</font></p>
                        </td>

                        <td style="BORDER-TOP: 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="justify"><font style="FONT-SIZE: 10pt; COLOR: #000000">)</font></p>
                        </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">812</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">(2,235</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">5,705</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">(1,005</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">2,281</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">($1,230</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">$3,424</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; 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">($0.10</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">$0.29</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; 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">($0.10</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">$0.28</font></p>
                        </td>

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

                <p></p>
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                <div title="PAGENUM" style="MARGIN-TOP: 12pt" align="center">
                    <a name="PAGENUM"><font face="Times New Roman, Times, serif">5</font></a>
                </div>

                <div title="EE+ Page Break" style="FONT-SIZE: 1pt; PAGE-BREAK-AFTER: always; WIDTH: 100%; HEIGHT: 1px">
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                </div>

                <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 June 28, 2008 and June 30, 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</font></i> <i><font style="FONT-SIZE: 10pt">amounts</font></i><i><font style="FONT-SIZE: 10pt">)</font></i></p>

                <p></p>

                <p></p>

                <table cellspacing="0" cellpadding="0" width="624" border="0">
                    <tr>
                        <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">June 28,<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">June 30,<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">$55,011</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">$56,846</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">39,861</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">42,887</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">15,150</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">13,959</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">12,141</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">10,628</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">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">315</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">286</font></p>
                        </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">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">245</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 bgcolor="#ccffff">
                        <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">12,701</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">10,994</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">Operating 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">2,449</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">2,965</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">Other (expense) income</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">Interest (expense) income, 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">(67</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">8</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">(Loss) gain 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">(6</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 valign="bottom" width="18">&nbsp;</td>
                    </tr>

                    <tr>
                        <td style="BORDER-TOP: black 0.5pt solid; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="388">&nbsp;</td>

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

                        <td style="BORDER-TOP: black 0.5pt solid; 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">(73</font></p>
                        </td>

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

                        <td style="BORDER-TOP: black 0.5pt solid; 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">21</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">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">2,376</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">2,986</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 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">936</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">1,133</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; COLOR: #000000">Net 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">$1,440</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">$1,853</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 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">$0.11</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">$0.16</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 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">$0.11</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">$0.15</font></p>
                        </td>

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

                <p></p>
                <!-- PAGE BREAK  -->

                <div title="PAGENUM" style="MARGIN-TOP: 12pt" align="center">
                    <a name="PAGENUM"><font face="Times New Roman, Times, serif">6</font></a>
                </div>

                <div title="EE+ Page Break" style="FONT-SIZE: 1pt; PAGE-BREAK-AFTER: always; WIDTH: 100%; HEIGHT: 1px">
                    <hr>
                </div>

                <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)</font></i></p>

                <p></p>

                <p></p>

                <table cellspacing="0" cellpadding="0" width="516" align="center" border="0">
                    <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="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">Twenty-Six 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">June 28,<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">June 30,<br>
                            2007</font></p>
                        </td>

                        <td style="BORDER-BOTTOM: black 0.5pt solid" 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>
                        <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">Issuance of stock under stock purchase plan</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</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</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">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">7</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">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>
                        <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">$639</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">$599</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">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 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">$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>
                        <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 stock under stock purchase plan</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">55</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">66</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">546</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">197</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">94</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">$106,885</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">$102,265</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">$1,002</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">(67</font></p>
                        </td>

                        <td 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; 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">170</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="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">$1,417</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">$1,172</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">(1,230</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">3,424</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">($14,220</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">($16,335</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 (loss)</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">($1,230</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">$3,424</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">(67</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">170</font></p>
                        </td>

                        <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="18">&nbsp;</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">($1,297</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">$3,594</font></p>
                        </td>

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

                <p></p>
                <!-- PAGE BREAK  -->

                <div title="PAGENUM" style="MARGIN-TOP: 12pt" align="center">
                    <a name="PAGENUM"><font face="Times New Roman, Times, serif">7</font></a>
                </div>

                <div title="EE+ Page Break" style="FONT-SIZE: 1pt; PAGE-BREAK-AFTER: always; WIDTH: 100%; HEIGHT: 1px">
                    <hr>
                </div>

                <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>
                Twenty-Six Weeks Ended June 28, 2008 and June 30, 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)</font></i></p>

                <p></p>

                <p></p>

                <table cellspacing="0" cellpadding="0" width="640" border="0">
                    <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">&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="399" 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="6">&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="78">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt">June 28,</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">June 30,</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="432" 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="6">&nbsp;</td>

                        <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="78">&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="415" 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="6">&nbsp;</td>

                        <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="78">&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="415" 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="6">&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="78">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">($1,230</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">$3,424</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="415" 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="6">&nbsp;</td>

                        <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="78">&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="415" 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="6">&nbsp;</td>

                        <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="78">&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="415" colspan="4">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">Adjustments to reconcile net (loss) income to net cash (used in) provided by</font></p>
                        </td>

                        <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="6">&nbsp;</td>

                        <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="78">&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="399" colspan="3">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">operating activities, net of effects of acquisition:</font></p>
                        </td>

                        <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="6">&nbsp;</td>

                        <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="78">&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="15">&nbsp;</td>

                        <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="384" 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="6">&nbsp;</td>

                        <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="78">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">921</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">723</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="384" 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="6">&nbsp;</td>

                        <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="78">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">197</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">94</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="384" 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 losses on accounts 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="6">&nbsp;</td>

                        <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="78">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">(133</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">183</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="384" 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 losses 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="6">&nbsp;</td>

                        <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="78">
                            <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="384" 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="6">&nbsp;</td>

                        <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="78">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">(1,660</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">1,603</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="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="384" 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="6">&nbsp;</td>

                        <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="78">&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" 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="366">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 10pt">Accounts 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="6">&nbsp;</td>

                        <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="78">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">(10,879</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">(4,822</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="366">
                            <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="6">&nbsp;</td>

                        <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="78">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">(519</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">(1,376</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">
                            <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="366">
                            <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="6">&nbsp;</td>

                        <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="78">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">(577</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">3,297</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="366">
                            <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="6">&nbsp;</td>

                        <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="78">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">(131</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">760</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="366">
                            <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="6">&nbsp;</td>

                        <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="78">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">577</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">(47</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: 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="366">
                            <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="6">&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="78">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">(1,376</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">94</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="366">&nbsp;</td>

                        <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="6">&nbsp;</td>

                        <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="78">&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="415" 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="6">&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="78">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">(7,490</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">509</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="399" 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="6">&nbsp;</td>

                        <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="78">&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="399" 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="6">&nbsp;</td>

                        <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="78">&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="399" 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="6">&nbsp;</td>

                        <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="78">&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="432" 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="6">&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="78">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">($8,720</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">$3,933</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>
                <br>
                <br>

                <p></p>

                <div title="PAGENUM" style="MARGIN-TOP: 12pt" align="center">
                    <a name="PAGENUM"><font face="Times New Roman, Times, serif">8</font></a>
                </div>

                <div title="EE+ Page Break" style="FONT-SIZE: 1pt; PAGE-BREAK-AFTER: always; WIDTH: 100%; HEIGHT: 1px">
                    <hr width="100%" noshade>
                </div>

                <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>
                Twenty-Six Weeks Ended June 28, 2008 and June 30, 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</font></i><i><font style="FONT-SIZE: 10pt">)</font></i></p>

                <p></p>

                <p></p>

                <table cellspacing="0" cellpadding="0" width="600" border="0">
                    <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">&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">June 28,<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">June 30,<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">($1,701</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">($374</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) decrease 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">(34</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">7</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; COLOR: #000000">Cash paid for acquisition, net of working capital acquired</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">(6,950</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">&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">(8,685</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">(367</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">Sale of stock for employee stock purchase plan</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">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="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">66</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 style="HEIGHT: 10.8pt" 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">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">554</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="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 borrowings 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">10,000</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 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">&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="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">10,056</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">620</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="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: 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">(53</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">248</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="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">
                            <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">(7,402</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">4,434</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="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: 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 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: 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">$4,240</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">$6,884</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="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">&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">
                            <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 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">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>
                        <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">$82</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">$132</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="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">$2,107</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">$620</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>
                <br>
                <br>

                <p></p>
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                    <a name="PAGENUM"><font face="Times New Roman, Times, serif">9</font></a>
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                <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; 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>
                <br>
                <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.</font> <font style="FONT-SIZE: 10pt">The year-end</font> <font style="FONT-SIZE: 10pt">consolidated balance sheet</font> <font style="FONT-SIZE: 10pt">was derived from audited statements
                but does not include all disclosures required by</font> <font style="FONT-SIZE: 10pt">accounting principles generally accepted in the United States.</font> <font style="FONT-SIZE: 10pt">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 twenty-six weeks ended June 28, 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 second fiscal quarter of 2007, the 2007 fiscal year and the second fiscal 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>
                        <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">June 30, 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">Twenty-Six</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">June 28, 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">Twenty-Six</font></p>
                        </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">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.</font></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</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;&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 February 26, 2008, the Company accepted a promissory note from a customer for $7.5 million, which includes interest, in payment of a like amount of accounts receivable from that customer. The note provides that $3.1 million is payable within 12 months and the remaining $4.4 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</font> <font style="FONT-SIZE: 10pt">April</font> <font style="FONT-SIZE: 10pt">30, 2008. 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.</font> <font style="FONT-SIZE: 10pt">On April 30, 2008, management of the Company concluded that the customer was going to default</font>
                <font style="FONT-SIZE: 10pt">on its May 1, 2008 installment payment and the</font> <font style="FONT-SIZE: 10pt">Company at that time</font> <font style="FONT-SIZE: 10pt">determined that the note receivable</font> <font style="FONT-SIZE: 10pt">will</font> <font style="FONT-SIZE: 10pt">not likely be collectible. Therefore, the Company recorded a $6.1 million provision for this doubtful account for the twenty-six weeks ended June 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; 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. (&ldquo;NuSoft&rdquo;), a Michigan corporation. NuSoft is a specialty provider of</font> <font style="FONT-SIZE: 10pt">information technology services. The acquisition of NuSoft was completed in order to expand the Company&rsquo;s IT solutions services within the Information
                Technology business segment. 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 (the &ldquo;Common Stock&rdquo;), valued at $3.5 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.</font> <font style="FONT-SIZE: 10pt">The source of cash utilized in the NuSoft acquisition was from the</font> <font style="FONT-SIZE: 10pt">Company's revolving credit facility.</font>
                <font style="FONT-SIZE: 10pt">The allocation of the long-lived assets had not been completed as of the first quarter ended March 29, 2008.</font> <font style="FONT-SIZE: 10pt">The purchase price allocation of $8.2 million</font> <font style="FONT-SIZE: 10pt">was subsequently</font> <font style="FONT-SIZE: 10pt">completed and the allocation is</font> <font style="FONT-SIZE: 10pt">as follows:</font></p>

                <p></p>

                <p></p>

                <table style="MARGIN-LEFT: 0.5in" 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="bottom" width="184">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt">Customer Relationships</font></p>
                        </td>

                        <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="107">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">$2.3</font> <font style="FONT-SIZE: 10pt">million</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="184">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt">Covenants-Not-To-Compete</font></p>
                        </td>

                        <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="107">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">0.4 million</font></p>
                        </td>
                    </tr>

                    <tr>
                        <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="184">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt">Goodwill</font></p>
                        </td>

                        <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="107">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">5.1</font> <font style="FONT-SIZE: 10pt">million</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="184">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt">Equipment</font></p>
                        </td>

                        <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="107">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">0.4 million</font></p>
                        </td>
                    </tr>
                </table>
                <br>
                <br>

                <p></p>

                <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.3in" align="justify"><font style="FONT-SIZE: 10pt">The deferred consideration and earnouts, if paid, will be recorded as additional purchase consideration. Earnouts cannot be estimated with any certainty.<br>
                &nbsp;</font></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 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">On April 28, 2008 the Registrant purchased the operating assets of MBH Solutions, Inc. (&ldquo;MBH&rdquo;), a New York corporation. MBH is a specialty provider of information technology services.</font> <font style="FONT-SIZE: 10pt">The acquisition of MBH was completed in order to expand the Company&rsquo;s IT solutions services within the Information Technology
                business segment.</font> <font style="FONT-SIZE: 10pt">The acquisition was effective as of April 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 MBH purchase consideration at closing consisted of $1.8</font> <font style="FONT-SIZE: 10pt">million in cash</font> <font style="FONT-SIZE: 10pt">and assumption of $0.5 million in deferred revenues</font> <font style="FONT-SIZE: 10pt">and 50,000 shares of</font> <font style="FONT-SIZE: 10pt">the Common</font> <font style="FONT-SIZE: 10pt">Stock</font>
                <font style="FONT-SIZE: 10pt">valued at $205,000 and potential earn-out payments up to $1.5 million of deferred consideration contingent upon MBH 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.</font></p>

                <p></p>

                <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.3in" align="justify"><font style="FONT-SIZE: 10pt">The acquisition has been accounted for under the purchase method of accounting. The source of cash utilized in the MBH acquisition was from the Company&rsquo;s</font> <font style="FONT-SIZE: 10pt">revolving credit facility. The purchase price allocation of $2.6</font> <font style="FONT-SIZE: 10pt">million has been allocated as follows:</font></p>

                <p></p>

                <p></p>

                <table style="MARGIN-LEFT: 0.5in" 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="bottom" width="184">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt">Customer Relationships</font></p>
                        </td>

                        <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="107">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">$0.8 million</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="184">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt">Covenants-Not-To-Compete</font></p>
                        </td>

                        <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="107">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">41</font></p>
                        </td>
                    </tr>

                    <tr>
                        <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="184">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt">Goodwill</font></p>
                        </td>

                        <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="107">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">1.7 million</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="184">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt">Equipment</font></p>
                        </td>

                        <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="bottom" width="107">
                            <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>
                    </tr>
                </table>
                <br>
                <br>

                <p></p>

                <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.3in" align="justify"><font style="FONT-SIZE: 10pt">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 two previous described acquisitions had occurred as of the beginning of the periods presented. Those results are not necessarily indicative of results of future operations or of results that would have occurred had the acquisitions occurred as of the beginning of the periods presented.</font></p>

                <p></p>

                <p></p>

                <table style="MARGIN-LEFT: 0.2in" 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; BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="161">&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="23">&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="172" 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="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="184" colspan="3">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt">Twenty-Six</font> <font style="FONT-SIZE: 10pt">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="161">&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="23">&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="92">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt">June 28,<br>
                            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="64">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt">June 30,</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="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="76">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt">June 28,<br>
                            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="92">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt">June 30,</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>
                    </tr>

                    <tr>
                        <td style="BORDER-TOP: medium none" 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">Revenues</font></p>
                        </td>

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

                        <td style="BORDER-TOP: medium none" 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">$55,011</font></p>
                        </td>

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

                        <td style="BORDER-TOP: medium none" valign="bottom" width="64">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">$64,620</font></p>
                        </td>

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

                        <td style="BORDER-TOP: 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">$110,157</font></p>
                        </td>

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

                        <td style="BORDER-TOP: medium none" 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">$126,511</font></p>
                        </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</font> <font style="FONT-SIZE: 10pt">(loss)</font> <font style="FONT-SIZE: 10pt">income</font></p>
                        </td>

                        <td valign="bottom" width="23">&nbsp;</td>

                        <td 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">2,449</font></p>
                        </td>

                        <td valign="bottom" width="15">&nbsp;</td>

                        <td valign="bottom" width="64">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">3,622</font></p>
                        </td>

                        <td valign="bottom" width="15">&nbsp;</td>

                        <td 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">(1,952</font></p>
                        </td>

                        <td 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>

                        <td 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">6,462</font></p>
                        </td>
                    </tr>

                    <tr>
                        <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">Net</font> <font style="FONT-SIZE: 10pt">income</font> <font style="FONT-SIZE: 10pt">(loss)</font></p>
                        </td>

                        <td valign="bottom" width="23">&nbsp;</td>

                        <td 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">$1,440</font></p>
                        </td>

                        <td valign="bottom" width="15">&nbsp;</td>

                        <td valign="bottom" width="64">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">$2,176</font></p>
                        </td>

                        <td valign="bottom" width="15">&nbsp;</td>

                        <td 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">($1,118</font></p>
                        </td>

                        <td 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>

                        <td 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">$3,761</font></p>
                        </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">Earnings</font> <font style="FONT-SIZE: 10pt">(loss)</font> <font style="FONT-SIZE: 10pt">per share</font></p>
                        </td>

                        <td valign="bottom" width="23">&nbsp;</td>

                        <td 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">$0.11</font></p>
                        </td>

                        <td valign="bottom" width="15">&nbsp;</td>

                        <td valign="bottom" width="64">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">$0.17</font></p>
                        </td>

                        <td valign="bottom" width="15">&nbsp;</td>

                        <td 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">($0.08</font></p>
                        </td>

                        <td 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>

                        <td 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">$0.29</font></p>
                        </td>
                    </tr>
                </table>
                <br>
                <br>

                <p></p>
                <!-- PAGE BREAK  -->

                <div title="PAGENUM" style="MARGIN-TOP: 12pt" align="center">
                    <a name="PAGENUM"><font face="Times New Roman, Times, serif">12</font></a>
                </div>

                <div title="EE+ Page Break" style="FONT-SIZE: 1pt; PAGE-BREAK-AFTER: always; WIDTH: 100%; HEIGHT: 1px">
                    <hr>
                </div>

                <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="justify"><b><font style="FONT-SIZE: 10pt; COLOR: #000000">5</font></b><b><font style="FONT-SIZE: 10pt; COLOR: #000000">.</font></b><b><font style="FONT-SIZE: 10pt; COLOR: #000000">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b><b><font style="FONT-SIZE: 10pt; COLOR: #000000">Acquisition</font></b><b><font style="FONT-SIZE: 10pt; COLOR: #000000">s (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">In connection with certain</font> <font style="FONT-SIZE: 10pt; COLOR: #000000">acquisitions, the Company is obligated to pay contingent consideration to the sellers</font> <font style="FONT-SIZE: 10pt; COLOR: #000000">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)</font> <font style="FONT-SIZE: 10pt; COLOR: #000000">Deferred Consideration</font> <font style="FONT-SIZE: 10pt; COLOR: #000000">-</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 of</font> <font style="FONT-SIZE: 10pt; COLOR: #000000">earnings which has been</font> <font style="FONT-SIZE: 10pt; COLOR: #000000">determined at the time of acquisition and (b)</font> <font style="FONT-SIZE: 10pt; COLOR: #000000">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">that</font> <font style="FONT-SIZE: 10pt; COLOR: #000000">are 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 Consideration</font> <font style="FONT-SIZE: 10pt; COLOR: #000000">obligations, which relate to various acquisitions,</font>
                <font style="FONT-SIZE: 10pt; COLOR: #000000">could result in approximately the following actual payments:</font></p>

                <p></p>

                <p></p>

                <table style="MARGIN-LEFT: 0.2in" 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; 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="left"><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">2,400</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">2,300</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">1,300</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">$6,100</font></p>
                        </td>
                    </tr>
                </table>
                <br>
                <br>

                <p></p>

                <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.3in" align="left"><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.<br>
                &nbsp;<br>
                The Company writes off fully depreciated assets periodically. During the twenty-six weeks</font> <font style="FONT-SIZE: 10pt; COLOR: #000000">ended</font> <font style="FONT-SIZE: 10pt; COLOR: #000000">June 28, 2008, the write offs were $1.2 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</font> <font style="FONT-SIZE: 10pt; COLOR: #000000">assumptions. Under SFAS No. 157, fair value measurements would be separately disclosed by level within the fair value hierarchy. In February 2008, the FASB</font> <font style="FONT-SIZE: 10pt; COLOR: #000000">issued FASB Staff Position</font> <font style="FONT-SIZE: 10pt; COLOR: #000000">No. 157-2, "Effective Date of FASB Statement No. 157," to partially defer</font>
                <font style="FONT-SIZE: 10pt; COLOR: #000000">SFAS</font> <font style="FONT-SIZE: 10pt; COLOR: #000000">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</font> <font style="FONT-SIZE: 10pt; COLOR: #000000">No. 157 was</font> <font style="FONT-SIZE: 10pt; COLOR: #000000">effective for the Company on</font>
                <font style="FONT-SIZE: 10pt; COLOR: #000000">December 30, 2007, 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 is</font> <font style="FONT-SIZE: 10pt; COLOR: #000000">December 30, 2008. The adoption of this statement</font> <font style="FONT-SIZE: 10pt; COLOR: #000000">did not</font> <font style="FONT-SIZE: 10pt; COLOR: #000000">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" ("SFAS</font> <font style="FONT-SIZE: 10pt">No.</font> <font style="FONT-SIZE: 10pt">159"). SFAS</font> <font style="FONT-SIZE: 10pt">No.</font> <font style="FONT-SIZE: 10pt">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 Company</font> <font style="FONT-SIZE: 10pt">as of December 30, 2008.</font></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; 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 not</font> <font style="FONT-SIZE: 10pt">to 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 debt</font> <font style="FONT-SIZE: 10pt">because it</font> <font style="FONT-SIZE: 10pt">carries 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,</font> <font style="FONT-SIZE: 10pt">SFAS No. 141R</font> <font style="FONT-SIZE: 10pt">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,</font>
                <font style="FONT-SIZE: 10pt">SFAS No. 141R</font> <font style="FONT-SIZE: 10pt">applies prospectively to business combinations for which the acquisition date is on or after</font> <font style="FONT-SIZE: 10pt">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 style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.2in" 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 the</font> <font style="FONT-SIZE: 10pt">twenty-six weeks</font> <font style="FONT-SIZE: 10pt">ended</font> <font style="FONT-SIZE: 10pt">June 28,
                2008</font> <font style="FONT-SIZE: 10pt">and</font> <font style="FONT-SIZE: 10pt">June 30, 2007</font> <font style="FONT-SIZE: 10pt">were</font> <font style="FONT-SIZE: 10pt">4.1% and</font> <font style="FONT-SIZE: 10pt">35.4%, 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 $7,600. During</font>
                <font style="FONT-SIZE: 10pt">the</font> <font style="FONT-SIZE: 10pt">twenty-six weeks</font> <font style="FONT-SIZE: 10pt">ended</font> <font style="FONT-SIZE: 10pt">June 28, 2008</font> <font style="FONT-SIZE: 10pt">and</font> <font style="FONT-SIZE: 10pt">June 30, 2007, the Company&rsquo;s outstanding borrowings ranged from</font> <font style="FONT-SIZE: 10pt">$-0- to $10.0 million and $-0- million to $1.5 million, respectively. At June 28, 2008 and December 29, 2007, there
                were $10.0 million and</font> <font style="FONT-SIZE: 10pt">$-0-</font> <font style="FONT-SIZE: 10pt">outstanding borrowings under this facility, respectively. At</font> <font style="FONT-SIZE: 10pt">June 28, 2008, there were</font> <font style="FONT-SIZE: 10pt">letters</font> <font style="FONT-SIZE: 10pt">of credit outstanding for $1.6</font> <font style="FONT-SIZE: 10pt">million.</font> <font style="FONT-SIZE: 10pt">At</font> <font style="FONT-SIZE: 10pt">June 28, 2008, the
                Company had availability for additional borrowings under the Revolving Credit Facility</font> <font style="FONT-SIZE: 10pt">of $13.4</font> <font style="FONT-SIZE: 10pt">million.</font></p>

                <p></p>
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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;&nbsp;&nbsp;Interest (Expense) Income, 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 (expense) income, net consisted of the following:<br>
                &nbsp;</font></p>

                <p></p>

                <table style="MARGIN-LEFT: 0.8in" cellspacing="0" cellpadding="0" width="532" border="0">
                    <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="184" colspan="3">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt">Twenty-Six Weeks Ended</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="191" 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 valign="bottom" width="21">&nbsp;</td>
                    </tr>

                    <tr>
                        <td style="BORDER-TOP: medium none" valign="bottom" width="119">&nbsp;</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="center"><font style="FONT-FAMILY: 'TIMES NEW ROMAN'">2008</font></p>
                        </td>

                        <td style="BORDER-TOP: medium none" valign="bottom" width="14">&nbsp;</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="center"><font style="FONT-FAMILY: 'TIMES NEW ROMAN'">2007</font></p>
                        </td>

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

                        <td style="BORDER-TOP: medium none" valign="bottom" width="92">
                            <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 style="FONT-FAMILY: 'TIMES NEW ROMAN'">2008</font></p>
                        </td>

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

                        <td style="BORDER-TOP: medium none" valign="bottom" width="81">
                            <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 style="FONT-FAMILY: 'TIMES NEW ROMAN'">2007</font></p>
                        </td>

                        <td valign="bottom" width="21">&nbsp;</td>
                    </tr>

                    <tr bgcolor="#ccffff">
                        <td style="BORDER-TOP: 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 expense</font></p>
                        </td>

                        <td style="BORDER-TOP: black 0.5pt solid" 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'">($105</font></p>
                        </td>

                        <td style="BORDER-TOP: black 0.5pt solid" valign="bottom" width="14">
                            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'ARIAL UNICODE MS'" align="left"><font style="FONT-FAMILY: 'TIMES NEW ROMAN'">)</font></p>
                        </td>

                        <td style="BORDER-TOP: black 0.5pt solid" 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'">($38</font></p>
                        </td>

                        <td style="BORDER-TOP: black 0.5pt solid" valign="bottom" width="15">
                            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'ARIAL UNICODE MS'" align="left"><font style="FONT-FAMILY: 'TIMES NEW ROMAN'">)</font></p>
                        </td>

                        <td style="BORDER-TOP: black 0.5pt solid" valign="bottom" width="92">
                            <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'">($91</font></p>
                        </td>

                        <td style="BORDER-TOP: black 0.5pt solid" valign="bottom" width="18">
                            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'ARIAL UNICODE MS'" align="left"><font style="FONT-FAMILY: 'TIMES NEW ROMAN'">)</font></p>
                        </td>

                        <td style="BORDER-TOP: black 0.5pt solid" valign="bottom" width="81">
                            <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'">($13</font></p>
                        </td>

                        <td valign="bottom" width="21">
                            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'ARIAL UNICODE MS'" align="left"><font style="FONT-FAMILY: 'TIMES NEW ROMAN'">)</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">64</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="right"><font style="FONT-SIZE: 10pt">39</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="92">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">24</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="81">
                            <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 valign="bottom" width="21">&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">($41</font></p>
                        </td>

                        <td style="BORDER-TOP: medium none; 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"><font style="FONT-SIZE: 10pt">)</font></p>
                        </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">$1</font></p>
                        </td>

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

                        <td style="BORDER-TOP: medium none; 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">($67</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="left"><font style="FONT-SIZE: 10pt">)</font></p>
                        </td>

                        <td style="BORDER-TOP: medium none; BORDER-BOTTOM: black 2pt double" valign="bottom" width="81">
                            <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="21">&nbsp;</td>
                    </tr>
                </table>
                <br>
                <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 No. 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.</font> <font style="FONT-SIZE: 10pt">There</font> <font style="FONT-SIZE: 10pt">were</font> <font style="FONT-SIZE: 10pt">no</font>
                <font style="FONT-SIZE: 10pt">triggering</font> <font style="FONT-SIZE: 10pt">events</font> <font style="FONT-SIZE: 10pt">during the twenty-six weeks ended</font> <font style="FONT-SIZE: 10pt">June 28, 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><br>
                &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 the</font> <font style="FONT-SIZE: 10pt">twenty-six weeks</font> <font style="FONT-SIZE: 10pt">ended</font> <font style="FONT-SIZE: 10pt">June 28, 2008</font> <font style="FONT-SIZE: 10pt">are as follows:</font></p>

                <p></p>

                <table style="MARGIN-LEFT: 0.3in" cellspacing="0" cellpadding="0" width="612" border="0">
                    <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">&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 twenty-six weeks ended June 28, 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"><font style="FONT-SIZE: 10pt">7,184</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"><font style="FONT-SIZE: 10pt">7,184</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 June 28, 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">$38,534</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">$46,772</font></p>
                        </td>

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

                <p></p>

                <p></p>

                <table style="MARGIN-LEFT: 0.3in" 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; 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">June 28, 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>
                        <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 bgcolor="#ccffff">
                        <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">$610</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">$136</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>
                        <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">4,025</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">915</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" 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">&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>
                        <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">$4,635</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">$1,051</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>
                <br>
                <br>

                <p></p>
                <!-- PAGE BREAK  -->

                <div title="PAGENUM" style="MARGIN-TOP: 12pt" align="center">
                    <a name="PAGENUM"><font face="Times New Roman, Times, serif">15</font></a>
                </div>

                <div title="EE+ Page Break" style="FONT-SIZE: 1pt; PAGE-BREAK-AFTER: always; WIDTH: 100%; HEIGHT: 1px">
                    <hr>
                </div>

                <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>
                        <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">June 28,<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">1,391,600</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">677,594</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">2,069,194</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 and twenty-six weeks ended June 28, 2008 and June 30, 2007 was determined as follows:</font></p>

                <p></p>

                <p></p>

                <table style="MARGIN-LEFT: 0.3in" cellspacing="0" cellpadding="0" width="612" border="0">
                    <tr>
                        <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="212">&nbsp;</td>

                        <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="196" 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="17">&nbsp;</td>

                        <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="186" 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">Twenty-Six Weeks Ended</font></p>
                        </td>
                    </tr>

                    <tr>
                        <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="212">&nbsp;</td>

                        <td style="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">June 28,<br>
                            2008</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="86">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000">June 30,<br>
                            2007</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="78">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt">June 28,<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">June 30,<br>
                            2007</font></p>
                        </td>
                    </tr>

                    <tr>
                        <td style="BORDER-TOP: medium none" valign="bottom" width="212">&nbsp;</td>

                        <td style="BORDER-TOP: medium none" valign="bottom" width="92">&nbsp;</td>

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

                        <td style="BORDER-TOP: medium none" valign="bottom" width="86">&nbsp;</td>

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

                        <td style="BORDER-TOP: medium none" valign="bottom" width="78">&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>
                    </tr>

                    <tr>
                        <td valign="bottom" width="212">
                            <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="92">&nbsp;</td>

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

                        <td valign="bottom" width="86">&nbsp;</td>

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

                        <td valign="bottom" width="78">&nbsp;</td>

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

                        <td valign="bottom" width="90">&nbsp;</td>
                    </tr>

                    <tr bgcolor="#ccffff">
                        <td style="BORDER-BOTTOM: black 2pt double" valign="bottom" width="212">
                            <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="92">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">12,758,689</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="86">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">11,931,649</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="78">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">12,520,227</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">11,908,292</font></p>
                        </td>
                    </tr>

                    <tr>
                        <td style="BORDER-TOP: medium none" valign="bottom" width="212">&nbsp;</td>

                        <td style="BORDER-TOP: medium none" valign="bottom" width="92">&nbsp;</td>

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

                        <td style="BORDER-TOP: medium none" valign="bottom" width="86">&nbsp;</td>

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

                        <td style="BORDER-TOP: medium none" valign="bottom" width="78">&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>
                    </tr>

                    <tr bgcolor="#ccffff">
                        <td valign="bottom" width="212">
                            <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="92">&nbsp;</td>

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

                        <td valign="bottom" width="86">&nbsp;</td>

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

                        <td valign="bottom" width="78">&nbsp;</td>

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

                        <td valign="bottom" width="90">&nbsp;</td>
                    </tr>

                    <tr>
                        <td valign="bottom" width="212">
                            <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="92">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">12,758,689</font></p>
                        </td>

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

                        <td valign="bottom" width="86">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">11,931,649</font></p>
                        </td>

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

                        <td valign="bottom" width="78">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">12,520,227</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">11,908,292</font></p>
                        </td>
                    </tr>

                    <tr bgcolor="#ccffff">
                        <td valign="bottom" width="212">
                            <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="92">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">71,682</font></p>
                        </td>

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

                        <td valign="bottom" width="86">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">546,999</font></p>
                        </td>

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

                        <td valign="bottom" width="78">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">123,869</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">512,910</font></p>
                        </td>
                    </tr>

                    <tr>
                        <td style="BORDER-TOP: black 0.5pt solid; BORDER-BOTTOM: black 2pt double" valign="bottom" width="212">&nbsp;</td>

                        <td style="BORDER-TOP: black 0.5pt solid; 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">12,830,371</font></p>
                        </td>

                        <td style="BORDER-TOP: black 0.5pt solid; BORDER-BOTTOM: black 2pt double" valign="bottom" width="17">&nbsp;</td>

                        <td style="BORDER-TOP: black 0.5pt solid; BORDER-BOTTOM: black 2pt double" valign="bottom" width="86">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">12,478,648</font></p>
                        </td>

                        <td style="BORDER-TOP: black 0.5pt solid; BORDER-BOTTOM: black 2pt double" valign="bottom" width="17">&nbsp;</td>

                        <td style="BORDER-TOP: black 0.5pt solid; BORDER-BOTTOM: black 2pt double" valign="bottom" width="78">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">12,644,096</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">12,421,202</font></p>
                        </td>
                    </tr>
                </table>
                <br>
                <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> June 28, 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.</font></p>

                <p></p>
                <!-- PAGE BREAK  -->

                <div title="PAGENUM" style="MARGIN-TOP: 12pt" align="center">
                    <a name="PAGENUM"><font face="Times New Roman, Times, serif">16</font></a>
                </div>

                <div title="EE+ Page Break" style="FONT-SIZE: 1pt; PAGE-BREAK-AFTER: always; WIDTH: 100%; HEIGHT: 1px">
                    <hr>
                </div>

                <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="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 Company</font> <font style="FONT-SIZE: 10pt">recognizes</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">No.</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</font> <font style="FONT-SIZE: 10pt">No.</font> <font style="FONT-SIZE: 10pt">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</font> <font style="FONT-SIZE: 10pt">No.</font>
                <font style="FONT-SIZE: 10pt">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</font> <font style="FONT-SIZE: 10pt">$197, or</font> <font style="FONT-SIZE: 10pt">$0.02</font> <font style="FONT-SIZE: 10pt">per diluted share, and of</font> <font style="FONT-SIZE: 10pt">$94, or $0.01</font> <font style="FONT-SIZE: 10pt">per diluted share, was recognized for the</font>
                <font style="FONT-SIZE: 10pt">twenty-six weeks</font> <font style="FONT-SIZE: 10pt">ended</font> <font style="FONT-SIZE: 10pt">June 28, 2008</font> <font style="FONT-SIZE: 10pt">and</font> <font style="FONT-SIZE: 10pt">June 30, 2007, respectively.</font><br>
                &nbsp;<br>
                <font style="FONT-SIZE: 10pt">Share-based compensation expense of</font> <font style="FONT-SIZE: 10pt">$104, or</font> <font style="FONT-SIZE: 10pt">$0.01</font> <font style="FONT-SIZE: 10pt">per diluted share, and</font> <font style="FONT-SIZE: 10pt">credit</font> <font style="FONT-SIZE: 10pt">of</font> <font style="FONT-SIZE: 10pt">$93,</font> <font style="FONT-SIZE: 10pt">or $0.01</font> <font style="FONT-SIZE: 10pt">per diluted share, was recognized for the</font>
                <font style="FONT-SIZE: 10pt">thirteen weeks</font> <font style="FONT-SIZE: 10pt">ended</font> <font style="FONT-SIZE: 10pt">June 28, 2008</font> <font style="FONT-SIZE: 10pt">and</font> <font style="FONT-SIZE: 10pt">June 30, 2007, respectively.</font><br>
                &nbsp;<br>
                <font style="FONT-SIZE: 10pt">The Company anticipates that share-based compensation will not exceed $400 for the year ending December 27, 2008 based on existing options as of June 28, 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 during</font> <font style="FONT-SIZE: 10pt; COLOR: #000000">the twenty-six weeks ended June 28, 2008 and June 30, 2007</font> <font style="FONT-SIZE: 10pt; COLOR: #000000">has been estimated using the following assumptions:<br>
                &nbsp;</font></p>

                <p></p>

                <table cellspacing="0" cellpadding="0" width="600" align="center" border="0">
                    <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="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">Twenty-Six 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">June 28,<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">June 30,<br>
                            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>
                        <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">3.04%</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">5.02%</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 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>
                        <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">56.5%</font></p>
                        </td>

                        <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="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">56.4%</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 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>
                        <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">10.1%</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">16.0%</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>
                    </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">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">$4.93</font></p>
                        </td>

                        <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="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">$6.91</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>
                <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 June 28, 2008, options to purchase 68,455 shares of common stock granted under the 1992 Plan were
                outstanding.</p>

                <p></p>
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                </div>

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                </div>

                <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 June 28, 2008, options to purchase 50,000 shares of common stock granted under the 1994 Plan 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 June 28, 2008, options to purchase 747,545 shares of common stock granted under the 1996 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 of</font> <font style="FONT-SIZE: 10pt">June 28, 2008,</font> <font style="FONT-SIZE: 10pt">8,694</font> <font style="FONT-SIZE: 10pt">shares of common stock were available for future grants</font> <font style="FONT-SIZE: 10pt">under the 2000 Plan, and options to purchase</font> <font style="FONT-SIZE: 10pt">494,500</font>
                <font style="FONT-SIZE: 10pt">shares of common stock</font> <font style="FONT-SIZE: 10pt">granted under the 2000 Plan</font> <font style="FONT-SIZE: 10pt">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 of June 28, 2008, 668,900 shares of common stock were available for future grants</font> <font style="FONT-SIZE: 10pt">under the 2007 Plan, and
                options to purchase 31,000 shares of common stock</font> <font style="FONT-SIZE: 10pt">granted under the 2007 Plan</font> <font style="FONT-SIZE: 10pt">were outstanding.</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">As of</font> <font style="FONT-SIZE: 10pt">June 28, 2008, the Company had</font> <font style="FONT-SIZE: 10pt">approximately $304</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 Company</font>
                <font style="FONT-SIZE: 10pt">expects</font> <font style="FONT-SIZE: 10pt">to recognize over approximately a</font> <font style="FONT-SIZE: 10pt">three-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></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 received cash from options exercised during the first twenty-six weeks of fiscal years 2008 and 2007 of $-0- and $553, respectively.&nbsp; The impact of these cash receipts is included in financing activities in the accompanying consolidated statements of cash flows.</font></p>

                <p></p>
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                </div>

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                </div>

                <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; 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">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: 0in; TEXT-INDENT: 18px" align="justify"><b><i><font style="FONT-SIZE: 10pt; COLOR: #000000">Incentive Stock Option Plans (Continued)</font></i></b></p>

                <p></p>

                <p style="MARGIN-TOP: 0pt; FONT-WEIGHT: bold; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.2in" align="left"><i>Employee Stock Purchase Plan</i></p>

                <p></p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; 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</font> <font style="FONT-SIZE: 10pt; COLOR: #000000">shares of Common Stock through payroll deductions for up to 10% of qualified compensation. During the</font> <font style="FONT-SIZE: 10pt; COLOR: #000000">twenty-six weeks</font> <font style="FONT-SIZE: 10pt; COLOR: #000000">ended</font>
                <font style="FONT-SIZE: 10pt; COLOR: #000000">June 28, 2008,</font> <font style="FONT-SIZE: 10pt; COLOR: #000000">there were 15,337 shares issued under the Purchase Plan for net proceeds of</font> <font style="FONT-SIZE: 10pt; COLOR: #000000">$56. As of June 28, 2008, there were 181,288 shares available for issuance under the Purchase Plan. The share-based compensation expense attributable to the 15,337 shares issued was</font> <font style="FONT-SIZE: 10pt; COLOR: #000000">$20
                and $24 for the twenty-six weeks ended June 28, 2008 and June 30, 2007, respectively.</font></p>
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                    <hr>
                </div>

                <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; 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">SFAS</font> <font style="FONT-SIZE: 10pt; COLOR: #000000">No.</font> <font style="FONT-SIZE: 10pt; COLOR: #000000">131, &ldquo;Disclosures about Segments of an Enterprise and Related Information&rdquo; (&ldquo;SFAS No. 131&rdquo;), 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,</font> <font style="FONT-SIZE: 10pt; COLOR: #000000">taxes, depreciation and amortization</font> <font style="FONT-SIZE: 10pt; COLOR: #000000">(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>
                        <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">Twenty-Six Weeks Ended<br>
                            June 28, 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">$50,443</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">$28,129</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">$25,553</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">$104,125</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">48,962</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">26,654</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">23,687</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">99,303</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">4</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">1,481</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">1,475</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">1,866</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">4,822</font></p>
                        </td>

                        <td valign="bottom" width="14">&nbsp;</td>
                    </tr>

                    <tr>
                        <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 bgcolor="#ccffff">
                        <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>
                        <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">297</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">211</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">88</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">596</font></p>
                        </td>

                        <td valign="bottom" width="14">&nbsp;</td>
                    </tr>

                    <tr bgcolor="#ccffff">
                        <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>
                        <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">308</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">17</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">325</font></p>
                        </td>

                        <td valign="bottom" width="14">&nbsp;</td>
                    </tr>

                    <tr bgcolor="#ccffff">
                        <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>
                        <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">876</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">(4,843</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">1,778</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">(2,189</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 bgcolor="#ccffff">
                        <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>
                        <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 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">20</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">11</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</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">41</font></p>
                        </td>

                        <td valign="bottom" width="14">&nbsp;</td>
                    </tr>

                    <tr bgcolor="#ccffff">
                        <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>
                        <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">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">5</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">5</font></p>
                        </td>

                        <td valign="bottom" width="14">&nbsp;</td>
                    </tr>

                    <tr bgcolor="#ccffff">
                        <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>
                        <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">386</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">(2,187</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">796</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">(1,005</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"><font style="FONT-SIZE: 10pt">)</font></p>
                        </td>
                    </tr>

                    <tr bgcolor="#ccffff">
                        <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>
                        <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">$470</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">($2,672</font></p>
                        </td>

                        <td style="BORDER-BOTTOM: black 2pt double" valign="bottom" width="17">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 10pt">)</font></p>
                        </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">$972</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">($1,230</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"><font style="FONT-SIZE: 10pt">)</font></p>
                        </td>
                    </tr>

                    <tr bgcolor="#ccffff">
                        <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>
                        <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">$68,322</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">$21,556</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">$18,056</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">$12,793</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">$120,727</font></p>
                        </td>

                        <td valign="bottom" width="14">&nbsp;</td>
                    </tr>

                    <tr bgcolor="#ccffff">
                        <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>
                        <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">$526</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">$246</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">$3</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">$926</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">$1,701</font></p>
                        </td>

                        <td valign="bottom" width="14">&nbsp;</td>
                    </tr>
                </table>
                <br>
                <br>

                <p></p>
                <!-- PAGE BREAK  -->

                <div title="PAGENUM" style="MARGIN-TOP: 12pt" align="center">
                    <a name="PAGENUM"><font face="Times New Roman, Times, serif">20</font></a>
                </div>

                <div title="EE+ Page Break" style="FONT-SIZE: 1pt; PAGE-BREAK-AFTER: always; WIDTH: 100%; HEIGHT: 1px">
                    <hr>
                </div>

                <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; 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 (Continued)</font></b></p>

                <p></p>

                <p></p>

                <table style="MARGIN-LEFT: 0.1in" cellspacing="0" cellpadding="0" width="640" border="0">
                    <tr>
                        <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"><b><font style="FONT-SIZE: 10pt">Twenty-Six Weeks Ended<br>
                            June 30, 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="12">&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="76">
                            <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="18">&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="12">&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="76">&nbsp;</td>

                        <td style="BORDER-TOP: medium none" valign="bottom" width="18">&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">$52,306</font></p>
                        </td>

                        <td valign="bottom" width="12">&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">$37,231</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">$21,802</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="76">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">$111,339</font></p>
                        </td>

                        <td valign="bottom" width="18">&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="12">&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="76">&nbsp;</td>

                        <td valign="bottom" width="18">&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">48,980</font></p>
                        </td>

                        <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="12">&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">35,704</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">21,042</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="76">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">105,726</font></p>
                        </td>

                        <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="18">&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="12">&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="76">&nbsp;</td>

                        <td style="BORDER-TOP: medium none" valign="bottom" width="18">&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">4</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">3,326</font></p>
                        </td>

                        <td valign="bottom" width="12">&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">1,527</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">760</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="76">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">5,613</font></p>
                        </td>

                        <td valign="bottom" width="18">&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="12">&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="76">&nbsp;</td>

                        <td valign="bottom" width="18">&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">253</font></p>
                        </td>

                        <td valign="bottom" width="12">&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">232</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">75</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="76">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">560</font></p>
                        </td>

                        <td valign="bottom" width="18">&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="12">&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="76">&nbsp;</td>

                        <td valign="bottom" width="18">&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">143</font></p>
                        </td>

                        <td valign="bottom" width="12">&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">17</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="76">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">160</font></p>
                        </td>

                        <td valign="bottom" width="18">&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="12">&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="76">&nbsp;</td>

                        <td style="BORDER-TOP: black 0.5pt solid" valign="bottom" width="18">&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">2,930</font></p>
                        </td>

                        <td valign="bottom" width="12">&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">1,278</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">685</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="76">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">4,893</font></p>
                        </td>

                        <td valign="bottom" width="18">&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="12">&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="76">&nbsp;</td>

                        <td valign="bottom" width="18">&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 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">(1</font></p>
                        </td>

                        <td valign="bottom" width="12">
                            <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="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="76">
                            <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="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 valign="bottom" width="160">&nbsp;</td>

                        <td valign="bottom" width="10">&nbsp;</td>

                        <td valign="bottom" width="87">&nbsp;</td>

                        <td valign="bottom" width="12">&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="76">&nbsp;</td>

                        <td valign="bottom" width="18">&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">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="12">&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</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">&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="76">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">(11</font></p>
                        </td>

                        <td 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 valign="bottom" width="160">&nbsp;</td>

                        <td valign="bottom" width="10">&nbsp;</td>

                        <td valign="bottom" width="87">&nbsp;</td>

                        <td valign="bottom" width="12">&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="76">&nbsp;</td>

                        <td valign="bottom" width="18">&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="12">&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="76">
                            <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="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 valign="bottom" width="160">&nbsp;</td>

                        <td valign="bottom" width="10">&nbsp;</td>

                        <td valign="bottom" width="87">&nbsp;</td>

                        <td valign="bottom" width="12">&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="76">&nbsp;</td>

                        <td valign="bottom" width="18">&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">1,172</font></p>
                        </td>

                        <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="12">&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">515</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">274</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">320</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="76">
                            <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="18">&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="12">&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="76">&nbsp;</td>

                        <td style="BORDER-TOP: medium none" valign="bottom" width="18">&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">$1,759</font></p>
                        </td>

                        <td style="BORDER-BOTTOM: black 2pt double" valign="bottom" width="12">&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">$774</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">$411</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">$480</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="76">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">$3,424</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="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="12">&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="76">&nbsp;</td>

                        <td style="BORDER-TOP: medium none" valign="bottom" width="18">&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">$54,525</font></p>
                        </td>

                        <td valign="bottom" width="12">&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">$27,242</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">$13,043</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">$14,168</font></p>
                        </td>

                        <td valign="bottom" width="10">&nbsp;</td>

                        <td 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">$108,978</font></p>
                        </td>

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

                    <tr style="HEIGHT: 4pt">
                        <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="12">&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="76">&nbsp;</td>

                        <td valign="bottom" width="18">&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">$240</font></p>
                        </td>

                        <td valign="bottom" width="12">&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">$52</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">$7</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">$75</font></p>
                        </td>

                        <td valign="bottom" width="10">&nbsp;</td>

                        <td 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">$374</font></p>
                        </td>

                        <td valign="bottom" width="18">&nbsp;</td>
                    </tr>
                </table>
                <!-- PAGE BREAK  --><br>
                <br>

                <div title="PAGENUM" style="MARGIN-TOP: 12pt" align="center">
                    <a name="PAGENUM"><font face="Times New Roman, Times, serif">21</font></a>
                </div>

                <div title="EE+ Page Break" style="FONT-SIZE: 1pt; PAGE-BREAK-AFTER: always; WIDTH: 100%; HEIGHT: 1px">
                    <hr>
                </div>

                <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 (Continued)</font></b></p>

                <p></p>

                <p></p>

                <table style="MARGIN-LEFT: 0.1in" cellspacing="0" cellpadding="0" width="644" border="0">
                    <tr>
                        <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>
                            June 28, 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">$28,004</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">$14,084</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">$12,923</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">$55,011</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">(3)</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">26,990</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">13,174</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">11,838</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">52,002</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">4</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">1,014</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">910</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">1,085</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">3,009</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">169</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">105</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">41</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">315</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">236</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">245</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</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">609</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">796</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">1,044</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">2,449</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">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">34</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">17</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</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">67</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">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">6</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</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">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">227</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">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">404</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">936</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 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</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">$348</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">$468</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">$624</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">$1,440</font></p>
                        </td>

                        <td style="BORDER-BOTTOM: black 2pt double" 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">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">$68,322</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">$21,556</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">$18,056</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">$12,793</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">$120,727</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">$63</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">$23</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">$2</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">$529</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">$617</font></p>
                        </td>

                        <td valign="bottom" width="14">&nbsp;</td>
                    </tr>
                </table>
                <br>
                <br>

                <p></p>
                <!-- PAGE BREAK  -->

                <div title="PAGENUM" style="MARGIN-TOP: 12pt" align="center">
                    <a name="PAGENUM"><font face="Times New Roman, Times, serif">22</font></a>
                </div>

                <div title="EE+ Page Break" style="FONT-SIZE: 1pt; PAGE-BREAK-AFTER: always; WIDTH: 100%; HEIGHT: 1px">
                    <hr>
                </div>

                <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; 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 (Continued)</font></b></p>

                <p></p>

                <p></p>

                <table style="MARGIN-LEFT: 0.1in" cellspacing="0" cellpadding="0" width="636" border="0">
                    <tr>
                        <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="159">
                            <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>
                            June 30, 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="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">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="75">
                            <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="159">&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="14">&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="75">&nbsp;</td>

                        <td style="BORDER-TOP: medium none" valign="bottom" width="14">&nbsp;</td>
                    </tr>

                    <tr bgcolor="#ccffff">
                        <td valign="bottom" width="159">
                            <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">$27,249</font></p>
                        </td>

                        <td valign="bottom" width="14">&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">$18,256</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">$11,341</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="75">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">$56,846</font></p>
                        </td>

                        <td valign="bottom" width="14">&nbsp;</td>
                    </tr>

                    <tr>
                        <td valign="bottom" width="159">&nbsp;</td>

                        <td valign="bottom" width="10">&nbsp;</td>

                        <td valign="bottom" width="87">&nbsp;</td>

                        <td valign="bottom" width="14">&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="75">&nbsp;</td>

                        <td valign="bottom" width="14">&nbsp;</td>
                    </tr>

                    <tr bgcolor="#ccffff">
                        <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="159">
                            <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">(3)</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">25,417</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="right"><font style="FONT-SIZE: 10pt">17,399</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">10,699</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="75">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">53,515</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="159">&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="14">&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="75">&nbsp;</td>

                        <td style="BORDER-TOP: medium none" valign="bottom" width="14">&nbsp;</td>
                    </tr>

                    <tr bgcolor="#ccffff">
                        <td valign="bottom" width="159">
                            <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">(4)</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">1,832</font></p>
                        </td>

                        <td valign="bottom" width="14">&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">857</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">642</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="75">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">3,331</font></p>
                        </td>

                        <td valign="bottom" width="14">&nbsp;</td>
                    </tr>

                    <tr>
                        <td valign="bottom" width="159">&nbsp;</td>

                        <td valign="bottom" width="10">&nbsp;</td>

                        <td valign="bottom" width="87">&nbsp;</td>

                        <td valign="bottom" width="14">&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="75">&nbsp;</td>

                        <td valign="bottom" width="14">&nbsp;</td>
                    </tr>

                    <tr bgcolor="#ccffff">
                        <td valign="bottom" width="159">
                            <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">134</font></p>
                        </td>

                        <td valign="bottom" width="14">&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">114</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">38</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="75">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">286</font></p>
                        </td>

                        <td valign="bottom" width="14">&nbsp;</td>
                    </tr>

                    <tr>
                        <td valign="bottom" width="159">&nbsp;</td>

                        <td valign="bottom" width="10">&nbsp;</td>

                        <td valign="bottom" width="87">&nbsp;</td>

                        <td valign="bottom" width="14">&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="75">&nbsp;</td>

                        <td valign="bottom" width="14">&nbsp;</td>
                    </tr>

                    <tr bgcolor="#ccffff">
                        <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="159">
                            <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 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">72</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="right"><font style="FONT-SIZE: 10pt">8</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">&nbsp;</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="75">
                            <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 style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="14">&nbsp;</td>
                    </tr>

                    <tr>
                        <td style="BORDER-TOP: medium none" valign="bottom" width="159">&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="14">&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="75">&nbsp;</td>

                        <td style="BORDER-TOP: medium none" valign="bottom" width="14">&nbsp;</td>
                    </tr>

                    <tr bgcolor="#ccffff">
                        <td valign="bottom" width="159">
                            <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">1,626</font></p>
                        </td>

                        <td valign="bottom" width="14">&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">735</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">604</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="75">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">2,965</font></p>
                        </td>

                        <td valign="bottom" width="14">&nbsp;</td>
                    </tr>

                    <tr>
                        <td valign="bottom" width="159">&nbsp;</td>

                        <td valign="bottom" width="10">&nbsp;</td>

                        <td valign="bottom" width="87">&nbsp;</td>

                        <td valign="bottom" width="14">&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="75">&nbsp;</td>

                        <td valign="bottom" width="14">&nbsp;</td>
                    </tr>

                    <tr bgcolor="#ccffff">
                        <td valign="bottom" width="159">
                            <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">(4</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>

                        <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">
                            <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">(1</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="75">
                            <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="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="159">&nbsp;</td>

                        <td valign="bottom" width="10">&nbsp;</td>

                        <td valign="bottom" width="87">&nbsp;</td>

                        <td valign="bottom" width="14">&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="75">&nbsp;</td>

                        <td valign="bottom" width="14">&nbsp;</td>
                    </tr>

                    <tr bgcolor="#ccffff">
                        <td valign="bottom" width="159">
                            <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="14">&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">(13</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">&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="75">
                            <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="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="159">&nbsp;</td>

                        <td valign="bottom" width="10">&nbsp;</td>

                        <td valign="bottom" width="87">&nbsp;</td>

                        <td valign="bottom" width="14">&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="75">&nbsp;</td>

                        <td valign="bottom" width="14">&nbsp;</td>
                    </tr>

                    <tr bgcolor="#ccffff">
                        <td style="BORDER-BOTTOM: black 0.5pt solid" valign="bottom" width="159">
                            <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">618</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="right"><font style="FONT-SIZE: 10pt">285</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">230</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="75">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">1,133</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="159">&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="14">&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="75">&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="159">
                            <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">$1,012</font></p>
                        </td>

                        <td style="BORDER-BOTTOM: black 2pt double" valign="bottom" width="14">&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">$466</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">$375</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="75">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">$1,853</font></p>
                        </td>

                        <td style="BORDER-BOTTOM: black 2pt double" valign="bottom" width="14">&nbsp;</td>
                    </tr>

                    <tr>
                        <td style="BORDER-TOP: medium none" valign="bottom" width="159">&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="14">&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="75">&nbsp;</td>

                        <td style="BORDER-TOP: medium none" valign="bottom" width="14">&nbsp;</td>
                    </tr>

                    <tr bgcolor="#ccffff">
                        <td valign="bottom" width="159">
                            <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">$54,525</font></p>
                        </td>

                        <td valign="bottom" width="14">&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">$27,242</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">$13,043</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">$14,168</font></p>
                        </td>

                        <td valign="bottom" width="10">&nbsp;</td>

                        <td valign="bottom" width="75">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">$108,978</font></p>
                        </td>

                        <td valign="bottom" width="14">&nbsp;</td>
                    </tr>

                    <tr>
                        <td valign="bottom" width="159">&nbsp;</td>

                        <td valign="bottom" width="10">&nbsp;</td>

                        <td valign="bottom" width="87">&nbsp;</td>

                        <td valign="bottom" width="14">&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="75">&nbsp;</td>

                        <td valign="bottom" width="14">&nbsp;</td>
                    </tr>

                    <tr bgcolor="#ccffff">
                        <td valign="bottom" width="159">
                            <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">$79</font></p>
                        </td>

                        <td valign="bottom" width="14">&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">$50</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">$7</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">$28</font></p>
                        </td>

                        <td valign="bottom" width="10">&nbsp;</td>

                        <td valign="bottom" width="75">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt">$164</font></p>
                        </td>

                        <td valign="bottom" width="14">&nbsp;</td>
                    </tr>
                </table>
                <br>
                <br>

                <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;&nbsp;&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"><font style="FONT-SIZE: 8pt; FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: -18px; 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;&nbsp;&nbsp;&nbsp;&nbsp;</font></sup><font style="FONT-SIZE: 8pt; FONT-FAMILY: 'TIMES NEW ROMAN'">Operating expenses</font> <font style="FONT-SIZE: 8pt; FONT-FAMILY: 'TIMES NEW ROMAN'">include $197</font>
                <font style="FONT-SIZE: 8pt; FONT-FAMILY: 'TIMES NEW ROMAN'">and $94 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 twenty-six weeks ended June 28, 2008 and June 30, 2007, respectively.</font></p>

                <p></p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: -18px; FONT-FAMILY: 'GOUDYOLST BT'" align="justify">
                <sup><font style="FONT-FAMILY: 'TIMES NEW ROMAN'">(</font></sup><sup><font style="FONT-FAMILY: 'TIMES NEW ROMAN'">3</font></sup><sup><font style="FONT-FAMILY: 'TIMES NEW ROMAN'">)</font></sup><sup><font style="FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></sup><font style="FONT-SIZE: 8pt; FONT-FAMILY: 'TIMES NEW ROMAN'">Operating expenses</font> <font style="FONT-SIZE: 8pt; FONT-FAMILY: 'TIMES NEW ROMAN'">include $104</font>
                <font style="FONT-SIZE: 8pt; FONT-FAMILY: 'TIMES NEW ROMAN'">and $92 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 thirteen weeks ended June 28, 2008 and June 30, 2007, respectively.</font></p>

                <p></p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: -18px; FONT-FAMILY: 'GOUDYOLST BT'" align="justify"><sup><font style="FONT-FAMILY: 'TIMES NEW ROMAN'">(4</font></sup><sup><font style="FONT-FAMILY: 'TIMES NEW ROMAN'">)</font></sup><font style="FONT-SIZE: 8pt; FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;EBITDA means earnings before interest,</font>
                <font style="FONT-SIZE: 8pt; FONT-FAMILY: 'TIMES NEW ROMAN'">taxes,</font> <font style="FONT-SIZE: 8pt; FONT-FAMILY: 'TIMES NEW ROMAN'">depreciation</font> <font style="FONT-SIZE: 8pt; FONT-FAMILY: 'TIMES NEW ROMAN'">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 to</font> <font style="FONT-SIZE: 8pt; FONT-FAMILY: 'TIMES NEW ROMAN'">EBITDA of</font> <font style="FONT-SIZE: 8pt; FONT-FAMILY: 'TIMES NEW ROMAN'">other 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,</font> <font style="FONT-SIZE: 8pt; FONT-FAMILY: 'TIMES NEW ROMAN'">nor</font> <font style="FONT-SIZE: 8pt; FONT-FAMILY: 'TIMES NEW ROMAN'">as 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></p>
                <!-- PAGE BREAK  -->

                <div title="PAGENUM" style="MARGIN-TOP: 12pt" align="center">
                    <a name="PAGENUM"><font face="Times New Roman, Times, serif">23</font></a>
                </div>

                <div title="EE+ Page Break" style="FONT-SIZE: 1pt; PAGE-BREAK-AFTER: always; WIDTH: 100%; HEIGHT: 1px">
                    <hr>
                </div>

                <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="left"><b><font style="FONT-SIZE: 10pt">14.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Segment Information (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">Revenues reported for each operating segment are from external customers.<br>
                &nbsp;<br>
                The Company</font> <font style="FONT-SIZE: 10pt">is domiciled in the United</font> <font style="FONT-SIZE: 10pt">States</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 Canada. Revenues and fixed assets by geographic area</font> <font style="FONT-SIZE: 10pt">as of and</font> <font style="FONT-SIZE: 10pt">for the</font> <font style="FONT-SIZE: 10pt">twenty-six
                weeks</font> <font style="FONT-SIZE: 10pt">ended</font> <font style="FONT-SIZE: 10pt">June 28, 2008 and June 30, 2007</font> <font style="FONT-SIZE: 10pt">are as follows:</font></p>

                <p></p>

                <p></p>

                <table style="MARGIN-LEFT: 0.3in" cellspacing="0" cellpadding="0" width="461" border="0">
                    <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">&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">Twenty-Six 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">June 28,<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">June 30,<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>
                        <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 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="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">$94,510</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">$104,495</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="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">9,615</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">6,844</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">$104,125</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">$111,339</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="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 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="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>
                        <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.</font> <font style="FONT-SIZE: 10pt">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">$5,249</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">$4,193</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="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">14</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">$5,335</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">$4,207</font></p>
                        </td>

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

                <p></p>

                <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.3in" align="justify"><font style="FONT-SIZE: 10pt"><a name="OLE_LINK22"></a><a name="OLE_LINK23">Revenues by geographic area for the thirteen weeks ended June 28, 2008 and June 30, 2007 are as follows:<br>
                &nbsp;</a></font></p>

                <p></p>

                <table style="MARGIN-LEFT: 0.3in" cellspacing="0" cellpadding="0" width="461" border="0">
                    <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">&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">&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="88">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 10pt; COLOR: #000000">June 28,<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">June 30,<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>
                        <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 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="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">$50,353</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">$53,243</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="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">4,658</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">3,603</font></p>
                        </td>

                        <td style="BORDER-RIGHT: medium none; BORDER-TOP: medium none; BORDER-LEFT: medium none; BORDER-BOTTOM: medium none" valign="bottom" width="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">$55,011</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">$56,846</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>
                <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">15.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contingencies</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.</p>
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                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.3in" align="center"><b><font style="COLOR: #000000">RCM TECHNOLOGIES, INC. AND SUBSIDIARIES</font></b></p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.3in" align="center"><b>NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS</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: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.3in; TEXT-INDENT: -18px" align="justify"><b>15.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contingencies</b></p>

                <p></p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.3in" align="justify">Discovery proceedings will continue with the other defendants to the end of 2008; the trial of the action will likely be scheduled to take place in the first half of 2009. The Company continues pursuit of its claim for punitive damages against the remaining law firm defendant.<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="left">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>
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                <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>
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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>
                &nbsp;<br>
                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 is</font> <font style="FONT-SIZE: 10pt">cyclical in nature and</font> <font style="FONT-SIZE: 10pt">sensitive 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 began to lose positive momentum in the second half of 2007 due to a weakening global economy and recessionary concerns. This slowdown has continued into the first half of 2008 as the business environment remains a challenging one. Despite the sluggish economy, gross profit margins improved in the
                second quarter of 2008</font> <font style="FONT-SIZE: 10pt">as compared to second quarter of 2007</font> <font style="FONT-SIZE: 10pt">with the addition of two strategic acquisitions to the Company&rsquo;s</font> <font style="FONT-SIZE: 10pt">enterprise business solutions business unit. The Company continues to be vigilant in monitoring its operating cost structure.</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. Consequently, the Company is
                focused more on transitioning to higher value, higher margin solutions offerings. The Company also realizes revenues from client engagements that include the placement of contract and temporary technical consultants and non-technical labor. These services are primarily provided to the client at hourly rates that are established for each of the Company&rsquo;s consultants based upon their skill level, experience and 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 of</font> <font style="FONT-SIZE: 10pt">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></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<br>
                &nbsp;<br>
                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 with</font> <font style="FONT-SIZE: 10pt">U. S.</font> <font style="FONT-SIZE: 10pt">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 align="justify"><font size="2"><em>Project Services</em></font> - <font face="Times New Roman, Times, serif" size="2">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></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="justify"><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="justify"><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="justify"><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</font> <font style="FONT-FAMILY: 'TIMES'">No.</font> <font style="FONT-FAMILY: 'TIMES'">142,</font>
                <font style="FONT-FAMILY: 'TIMES'">&ldquo;Goodwill and Other Intangible Assets&rdquo;</font> <font style="FONT-FAMILY: 'TIMES'">(&ldquo;SFAS No. 142&rdquo;),</font> <font style="FONT-FAMILY: 'TIMES'">the Company performs its annual goodwill impairment testing, by reportable unit,</font> <font style="FONT-FAMILY: 'TIMES'">as of November 30 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. Goodwill</font> <font style="FONT-FAMILY: 'TIMES'">was</font> <font style="FONT-FAMILY: 'TIMES'">$46.4 million and $39.6 million</font> <font style="FONT-FAMILY: 'TIMES'">at</font>
                <font style="FONT-FAMILY: 'TIMES'">June 28, 2008 and</font> <font style="FONT-FAMILY: 'TIMES'">December 29, 2007, respectively.</font></p>

                <p></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: 0in; TEXT-INDENT: 0px; 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</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 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</font> <font style="FONT-SIZE: 10pt">SFAS No. 123R</font> <font style="FONT-SIZE: 10pt">&ldquo;Share Based Payment&rdquo; (&ldquo;SFAS</font> <font style="FONT-SIZE: 10pt">No.</font> <font style="FONT-SIZE: 10pt">123R&rdquo;). SFAS</font> <font style="FONT-SIZE: 10pt">No.</font>
                <font style="FONT-SIZE: 10pt">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.</font> <font style="FONT-SIZE: 10pt; COLOR: #000000">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.</font> <font style="FONT-SIZE: 10pt; COLOR: #000000">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</font> <font style="FONT-SIZE: 10pt">No.</font> <font style="FONT-SIZE: 10pt">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>Accounting for Income Taxes</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 of</font> <font style="FONT-SIZE: 10pt; COLOR: #000000">June 28, 2008, the Company had total net deferred tax assets of $2.4</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 2003. At</font> <font style="FONT-SIZE: 10pt; COLOR: #000000">June 28, 2008, the Company did not have any uncertain tax positions.</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">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>
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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: 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"><strong><font size="2">Accrued Bonuses</font></strong></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>
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                <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">Twenty-Six Weeks Ended June 28, 2008 Compared to Twenty-Six Weeks Ended June 30, 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 June 28, 2008 and June 30, 2007 is as follows (in thousands, except for earnings per share data):</a></p>

                <p></p>

                <p></p>

                <table cellspacing="0" cellpadding="0" width="611" border="0">
                    <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">&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">June 28, 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">June 30, 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>
                        <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">$104,125</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">$111,339</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 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="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">76,677</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">73.6</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">85,004</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">76.3</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>
                        <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">27,448</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="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">26.4</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">26,335</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">23.7</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 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">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">22,626</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">21.7</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">20,722</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 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">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">5.9</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>
                        <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">921</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">1.0</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">720</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">.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 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">&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">29,637</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">28.6</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">21,442</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">19.3</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>
                        <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">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">(2,189</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">(2.2</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">4,893</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">4.4</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">Other (expense) income</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">(46</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">&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="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">812</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">.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 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) 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">(2,235</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">(2.2</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">5,705</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">5.1</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; 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">(1,005</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">(1.0</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">2,281</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">2.0</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; 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; 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">($1,230</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">(1.2</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">$3,424</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">3.1</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>
                        <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) 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>
                        <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">($0.10</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">$0.29</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 bgcolor="#ccffff">
                        <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">($0.10</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">$0.28</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>
                <br>
                <br>

                <p></p>

                <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 June 28, 2008 and June 30, 2007 consisted of twenty-six 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">Revenues decreased 6.5%, or $7.2 million, for the twenty-six weeks ended June 28, 2008 as compared to the same period in the prior year (the &ldquo;comparable prior year period&rdquo;). Revenues decreased $1.9 million in the Information Technology (&ldquo;IT&rdquo;) segment,
                decreased $9.1 million in the Engineering segment, and increased $3.8 million in the Commercial segment. Management attributes the overall decrease to a weakening of the general economy and the loss of an engineering client, which generated</font> <font style="FONT-SIZE: 10pt">revenue of</font> <font style="FONT-SIZE: 10pt">$10.8 million</font> <font style="FONT-SIZE: 10pt">in the 2007 period as compared to</font> <font style="FONT-SIZE: 10pt">$-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 June 28, 2008. Revenues that were attributable to acquisitions which occurred in the IT segment since June 30, 2007 and</font> <font style="FONT-SIZE: 10pt">were not included in the comparable prior year period</font> <font style="FONT-SIZE: 10pt">were approximately $8.6 million.</font></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: 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">Twenty-Six Weeks Ended June 28, 2008 Compared to Twenty-Six Weeks Ended June 30, 2007 - (Continued)</font></b></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">Cost of Services.</font></i></b> <font style="FONT-SIZE: 10pt">Cost of services decreased 9.8%, or $8.3 million, for the twenty-six weeks ended June 28, 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 73.6% for the
                twenty-six weeks ended June 28, 2008 from 76.3% 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 gross margins for the remainder of fiscal 2008 to remain comparable to those in the twenty-six weeks ended June 28, 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 9.2%, or $1.9 million, for the twenty-six weeks ended June 28, 2008 as compared to the comparable prior year period. As a percentage of revenues, SGA expenses were 21.7% for the twenty-six
                weeks ended June 28, 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 two acquisitions subsequent to February 28, 2008. Management expects SGA expenses for the remainder of fiscal 2008 to remain generally consistent with the SGA expenses, adjusted for seventeen weeks of additional SGA expenses from the aforementioned acquisitions, for the twenty-six weeks ended June
                28, 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 - Note Receivable.</font></i></b> <font style="FONT-SIZE: 10pt">On February 26, 2008, the Company accepted a</font> <font style="FONT-SIZE: 10pt">promissory note from a customer for $7.5 million 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 million is payable within 12 months and the remaining $4.4 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</font> <font style="FONT-SIZE: 10pt">April</font> <font style="FONT-SIZE: 10pt">30, 2008. 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</font> <font style="FONT-SIZE: 10pt">April 30, 2008, management of the Company concluded that the customer was going to default</font> <font style="FONT-SIZE: 10pt">on its May 1, 2008 installment payment and the</font> <font style="FONT-SIZE: 10pt">Company at that time determined that</font> <font style="FONT-SIZE: 10pt">this note receivable</font> <font style="FONT-SIZE: 10pt">will not likely be collectible. Therefore, the Company recorded a $6.1 million reserve to
                this doubtful account for the twenty-six weeks ended June 28, 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</font> <font style="FONT-SIZE: 10pt">increased 27.9%, or $.2 million</font> <font style="FONT-SIZE: 10pt">for the</font> <font style="FONT-SIZE: 10pt">twenty-six weeks</font> <font style="FONT-SIZE: 10pt">ended</font>
                <font style="FONT-SIZE: 10pt">June 28, 2008</font> <font style="FONT-SIZE: 10pt">as compared to the comparable prior year period.</font> <font style="FONT-SIZE: 10pt">This increase was principally attributable to amortization of intangibles incurred from two acquisitions in the 2008 period.<br>
                &nbsp;</font></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</font> <font style="FONT-SIZE: 10pt">(expense)</font> <font style="FONT-SIZE: 10pt">income consists of interest</font> <font style="FONT-SIZE: 10pt">expense, net of interest</font> <font style="FONT-SIZE: 10pt">income</font> <font style="FONT-SIZE: 10pt">and gains and
                losses on foreign currency transactions and, in 2007, the proceeds from a legal settlement. For the</font> <font style="FONT-SIZE: 10pt">twenty-six</font> <font style="FONT-SIZE: 10pt">weeks ended</font> <font style="FONT-SIZE: 10pt">June 28, 2008, actual interest expense of $105,000</font> <font style="FONT-SIZE: 10pt">was offset by $64,000</font> <font style="FONT-SIZE: 10pt">of interest income, which was earned from short-term money market deposits. Interest</font>
                <font style="FONT-SIZE: 10pt">expense, net increased</font> <font style="FONT-SIZE: 10pt">$42,000</font> <font style="FONT-SIZE: 10pt">for the</font> <font style="FONT-SIZE: 10pt">twenty-six</font> <font style="FONT-SIZE: 10pt">weeks ended</font> <font style="FONT-SIZE: 10pt">June 28, 2008</font> <font style="FONT-SIZE: 10pt">as compared to the comparable prior year period. This increase was primarily due to increased borrowing levels associated with the funding of two
                acquisitions in the 2008 period.</font> <font style="FONT-SIZE: 10pt">Gains</font> <font style="FONT-SIZE: 10pt">and losses</font> <font style="FONT-SIZE: 10pt">on foreign currency transactions increased $16,000 in the</font> <font style="FONT-SIZE: 10pt">twenty-six</font> <font style="FONT-SIZE: 10pt">weeks ended</font> <font style="FONT-SIZE: 10pt">June 28, 2008</font> <font style="FONT-SIZE: 10pt">as compared to the comparable prior year period. This increase was attributable
                to the</font> <font style="FONT-SIZE: 10pt">unfavorable 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 decreased</font> <font style="FONT-SIZE: 10pt">144.1%, or $3.3 million,</font> <font style="FONT-SIZE: 10pt">for the</font> <font style="FONT-SIZE: 10pt">twenty-six weeks</font> <font style="FONT-SIZE: 10pt">ended</font> <font style="FONT-SIZE: 10pt">June 28, 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 twenty-six weeks ended June 28, 2008 as well as an increase in tax deductible goodwill amortization of approximately $213,000.</font> <font style="FONT-SIZE: 10pt">The effective tax rate was</font> <font style="FONT-SIZE: 10pt">a credit of 45.0%
                for the</font> <font style="FONT-SIZE: 10pt">twenty-six weeks</font> <font style="FONT-SIZE: 10pt">ended</font> <font style="FONT-SIZE: 10pt">June 28, 2008</font> <font style="FONT-SIZE: 10pt">as compared to</font> <font style="FONT-SIZE: 10pt">40.0% in the comparable prior year period.</font> <font style="FONT-SIZE: 10pt">Without the bad debt expense, the effective tax rate would have</font> <font style="FONT-SIZE: 10pt">been 36.4%.</font></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">Twenty-Six Weeks Ended June 28, 2008 Compared to Twenty-Six Weeks Ended June 30, 2007 - (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 $50.4</font> <font style="FONT-SIZE: 10pt">million in</font> <font style="FONT-SIZE: 10pt">2008 decreased $1.9</font> <font style="FONT-SIZE: 10pt">million, or</font> <font style="FONT-SIZE: 10pt">3.6%, compared to</font> <font style="FONT-SIZE: 10pt">2007.</font> <font style="FONT-SIZE: 10pt">The decrease in revenue was attributable to
                the</font> <font style="FONT-SIZE: 10pt">weakness in the economy and</font> <font style="FONT-SIZE: 10pt">demand for the Company&rsquo;s IT services.</font> <font style="FONT-SIZE: 10pt">The IT segment EBITDA was $1.5 million, or</font> <font style="FONT-SIZE: 10pt">30.7% of the overall EBITDA for</font> <font style="FONT-SIZE: 10pt">2008, as compared to $3.3</font> <font style="FONT-SIZE: 10pt">million, or</font> <font style="FONT-SIZE: 10pt">59.3% of the overall EBITDA</font>
                <font style="FONT-SIZE: 10pt">for</font> <font style="FONT-SIZE: 10pt">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 $28.1</font> <font style="FONT-SIZE: 10pt">million in</font> <font style="FONT-SIZE: 10pt">2008 decreased $9.1</font> <font style="FONT-SIZE: 10pt">million, or</font> <font style="FONT-SIZE: 10pt">24.4%, compared to</font> <font style="FONT-SIZE: 10pt">2007. The decrease in</font> <font style="FONT-SIZE: 10pt">revenue 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 revenue of $10.8 million in the 2007 period.</font> <font style="FONT-SIZE: 10pt">The Engineering segment EBITDA was $1.5 million, or</font> <font style="FONT-SIZE: 10pt">30.6% of the overall EBITDA for</font> <font style="FONT-SIZE: 10pt">2008, as compared to $1.5
                million, or</font> <font style="FONT-SIZE: 10pt">27.2% of the overall EBITDA for</font> <font style="FONT-SIZE: 10pt">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 $25.6</font> <font style="FONT-SIZE: 10pt">million in</font> <font style="FONT-SIZE: 10pt">2008 increased $3.8 million, or</font> <font style="FONT-SIZE: 10pt">17.2%,</font> <font style="FONT-SIZE: 10pt">compared to</font> <font style="FONT-SIZE: 10pt">2007.</font> <font style="FONT-SIZE: 10pt">The increase in revenues was
                principally attributable to increased demand for the Company&rsquo;s Healthcare staffing services.</font> <font style="FONT-SIZE: 10pt">The Commercial segment EBITDA was $1.9 million, or</font> <font style="FONT-SIZE: 10pt">38.7% of the overall EBITDA for 2008,</font> <font style="FONT-SIZE: 10pt">as compared to $760,000, or</font> <font style="FONT-SIZE: 10pt">13.5% of the overall EBITDA for</font> <font style="FONT-SIZE: 10pt">2007.</font></p>
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                <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 June 28, 2008 Compared to Thirteen Weeks Ended June 30, 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 summary of operating results for the fiscal periods ended June 28, 2008 and June 30, 2007 is as follows (in thousands, except for earnings per share data):</p>

                <p></p>

                <p></p>

                <table cellspacing="0" cellpadding="0" width="611" border="0">
                    <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">&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">June 28, 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">June 30, 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>
                        <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">$55,011</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">$56,846</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 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="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">39,861</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">72.5</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">42,887</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">75.4</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">
                            <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">15,150</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">27.5</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">13,959</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">24.6</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 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">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">12,141</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">22.1</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">10,628</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">18.7</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 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">560</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">1.0</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">366</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">.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">12,701</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">23.1</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">10,994</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">19.3</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" 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 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">2,449</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">4.5</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">2,965</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">5.2</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; 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">(73</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">(.2</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">21</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">&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; 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">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">2,376</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">4.3</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">2,986</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">5.2</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>
                        <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">936</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">1.7</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">1,133</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">1.9</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; 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">$1,440</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">&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="54">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 10pt; COLOR: #000000">2.6</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">&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">$1,853</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">3.3</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" 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">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">$0.11</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">&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">$0.16</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">$0.11</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">&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="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">$0.15</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>
                <br>
                <br>

                <p></p>

                <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 June 28, 2008 and June 30, 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">Revenues</font> <font style="FONT-SIZE: 10pt">decreased</font> <font style="FONT-SIZE: 10pt">3.2%,</font> <font style="FONT-SIZE: 10pt">or</font> <font style="FONT-SIZE: 10pt">$1.8 million, for the thirteen weeks ended June 28, 2008 as compared to the same period in the prior
                year (the &ldquo;comparable prior year period&rdquo;). Revenues increased $0.8 million in the Information Technology (&ldquo;IT&rdquo;) segment, decreased $4.2 million in the Engineering segment, and increased $1.6 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 revenue of $5.8 million
                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 June 28, 2008. Revenues that were attributable to acquisitions which occurred in the IT segment since June 30, 2007 were not included in the comparable prior year period were approximately</font> <font style="FONT-SIZE: 10pt">$7.1 million.</font></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: 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 June 28, 2008 Compared to Thirteen Weeks Ended June 30, 2007 - (Continued)</font></b></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">Cost of Services.</font></i></b> <font style="FONT-SIZE: 10pt">Cost of services decreased 7.1%, or $3.0 million, for the thirteen weeks ended June 28, 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 72.5% for the thirteen
                weeks ended June 28, 2008 from 75.4% 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 June 28, 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">SGA expenses increased 14.2%, or $1.5 million, for the thirteen weeks ended June 28, 2008 as compared to the comparable prior year period. As a percentage of revenues, SGA expenses were 22.1% for the thirteen weeks ended June 28, 2008 as compared to 18.7% for the
                comparable prior year period. This percentage increase was primarily attributable to the SGA expenses incurred in connection with two acquisitions subsequent to February 28, 2008. Management expects SGA expenses for the remainder of fiscal 2008 to remain generally consistent with the SGA expenses, adjusted for thirteen weeks of additional SGA expenses from the aforementioned acquisition, for the thirteen weeks ended June 28, 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</font> <font style="FONT-SIZE: 10pt">increased $0.2 million</font> <font style="FONT-SIZE: 10pt">for the</font> <font style="FONT-SIZE: 10pt">thirteen weeks</font> <font style="FONT-SIZE: 10pt">ended</font> <font style="FONT-SIZE: 10pt">June
                28, 2008</font> <font style="FONT-SIZE: 10pt">as compared to the comparable prior year period.</font> <font style="FONT-SIZE: 10pt">This increase was principally attributable to amortization of intangibles incurred from two acquisitions in the 2008 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 (expense) income consists of interest expense, net of interest income and gains and losses on foreign currency transactions. For the thirteen weeks ended June 28, 2008, actual interest expense of $91,000 was offset by $24,000 of interest income, which was earned from
                short-term money market deposits. Interest expense, net increased $75,000 for the thirteen weeks ended June 28, 2008 as compared to the comparable prior year period. This increase was primarily due to increased borrowing levels associated with the funding of two acquisitions in the 2008 period. Loss on foreign currency transactions increased $19,000 in the thirteen weeks ended June 28, 2008 as compared to the comparable prior year period. This increase was attributable to the
                unfavorable exchange rates realized during the 2008 period.</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 decreased</font> <font style="FONT-SIZE: 10pt">17.4%, or $0.2 million,</font> <font style="FONT-SIZE: 10pt">for the</font> <font style="FONT-SIZE: 10pt">thirteen weeks</font> <font style="FONT-SIZE: 10pt">ended</font> <font style="FONT-SIZE: 10pt">June 28, 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 an increase in goodwill amortization of approximately $165,000.</font> <font style="FONT-SIZE: 10pt">The effective tax rate was</font> <font style="FONT-SIZE: 10pt">a credit of 39.3% for the</font> <font style="FONT-SIZE: 10pt">thirteen weeks</font> <font style="FONT-SIZE: 10pt">ended</font>
                <font style="FONT-SIZE: 10pt">June 28, 2008</font> <font style="FONT-SIZE: 10pt">as compared to</font> <font style="FONT-SIZE: 10pt">37.9% in the comparable prior year period.</font></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">Thirteen Weeks Ended June 28, 2008 Compared to Thirteen Weeks Ended June 30, 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 $28.0</font> <font style="FONT-SIZE: 10pt">million in</font> <font style="FONT-SIZE: 10pt">2008 increased $0.8</font> <font style="FONT-SIZE: 10pt">million, or</font> <font style="FONT-SIZE: 10pt">2.8%, compared to</font> <font style="FONT-SIZE: 10pt">2007.</font> <font style="FONT-SIZE: 10pt">The increase in revenue was attributable to
                two acquisitions in the IT segment in the 2008 period offset by the continued weakening of the general economy.</font> <font style="FONT-SIZE: 10pt">The IT segment EBITDA was $1.0 million, or</font> <font style="FONT-SIZE: 10pt">33.7% of the overall EBITDA for</font> <font style="FONT-SIZE: 10pt">2008, as compared to $1.8</font> <font style="FONT-SIZE: 10pt">million, or</font> <font style="FONT-SIZE: 10pt">55.0% of the overall EBITDA</font>
                <font style="FONT-SIZE: 10pt">for</font> <font style="FONT-SIZE: 10pt">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 $14.1</font> <font style="FONT-SIZE: 10pt">million in</font> <font style="FONT-SIZE: 10pt">2008 decreased $4.2</font> <font style="FONT-SIZE: 10pt">million, or</font> <font style="FONT-SIZE: 10pt">22.9%, compared to</font> <font style="FONT-SIZE: 10pt">2007. The decrease in</font> <font style="FONT-SIZE: 10pt">revenue 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 revenue of $5.1 million in the 2007 period.</font> <font style="FONT-SIZE: 10pt">The Engineering segment EBITDA was $910,000, or</font> <font style="FONT-SIZE: 10pt">30.2% of the overall EBITDA for</font> <font style="FONT-SIZE: 10pt">2008, as compared to $857,000,
                or</font> <font style="FONT-SIZE: 10pt">25.7% of the overall EBITDA for</font> <font style="FONT-SIZE: 10pt">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 $12.9</font> <font style="FONT-SIZE: 10pt">million in</font> <font style="FONT-SIZE: 10pt">2008 increased $1.6 million, or</font> <font style="FONT-SIZE: 10pt">13.9%,</font> <font style="FONT-SIZE: 10pt">compared to</font> <font style="FONT-SIZE: 10pt">2007.</font> <font style="FONT-SIZE: 10pt">The increase in revenues was
                principally attributable to increased revenues in the Company&rsquo;s Healthcare business unit.</font> <font style="FONT-SIZE: 10pt">The Commercial segment EBITDA was $1.1 million, or</font> <font style="FONT-SIZE: 10pt">36.1% of the overall EBITDA for 2008,</font> <font style="FONT-SIZE: 10pt">as compared to $642,000, or</font> <font style="FONT-SIZE: 10pt">19.3% of the overall EBITDA for</font> <font style="FONT-SIZE: 10pt">2007.</font></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>

                <p></p>

                <table cellspacing="0" cellpadding="0" width="600" align="center" border="0">
                    <tr>
                        <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">Twenty-Six</font> <font style="FONT-SIZE: 10pt">Weeks</font> <font style="FONT-SIZE: 10pt">Ended</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">June 28, 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">June 30, 2007</font></p>
                        </td>

                        <td valign="bottom" width="19">&nbsp;</td>
                    </tr>

                    <tr>
                        <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">($8,720</font></p>
                        </td>

                        <td 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 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">$3,933</font></p>
                        </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">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">($8,685</font></p>
                        </td>

                        <td 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 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">($367</font></p>
                        </td>

                        <td valign="bottom" width="19">
                            <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="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="right"><font style="FONT-SIZE: 10pt">$10,056</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="right"><font style="FONT-SIZE: 10pt">$620</font></p>
                        </td>

                        <td valign="bottom" width="19">&nbsp;</td>
                    </tr>
                </table>
                <br>
                <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 $8.7 million of cash for the twenty-six weeks ended June 28, 2008 as compared to $3.9 million provided by operating activities 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, an increase in prepaid
                expenses and other current assets, a decrease in accounts payable and accrued expenses, accrued compensation, provision for doubtful accounts, and income taxes payable. These changes were offset by an increase in payroll and withheld taxes.</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 $8.7</font> <font style="FONT-SIZE: 10pt">million for the</font> <font style="FONT-SIZE: 10pt">twenty-six</font> <font style="FONT-SIZE: 10pt">weeks ended</font> <font style="FONT-SIZE: 10pt">June 28, 2008</font> <font style="FONT-SIZE: 10pt">as compared to $367,000 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">period</font> <font style="FONT-SIZE: 10pt">was 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 and MBH 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 $554,000.</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></p>
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                <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-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 the</font> <font style="FONT-SIZE: 10pt">twenty-six weeks</font> <font style="FONT-SIZE: 10pt">ended</font>
                <font style="FONT-SIZE: 10pt">June 28, 2008</font> <font style="FONT-SIZE: 10pt">and</font> <font style="FONT-SIZE: 10pt">June 30, 2007</font> <font style="FONT-SIZE: 10pt">were</font> <font style="FONT-SIZE: 10pt">4.1% and</font> <font style="FONT-SIZE: 10pt">35.4%, 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. During</font> <font style="FONT-SIZE: 10pt">the</font> <font style="FONT-SIZE: 10pt">twenty-six weeks</font> <font style="FONT-SIZE: 10pt">ended</font> <font style="FONT-SIZE: 10pt">June 28, 2008</font> <font style="FONT-SIZE: 10pt">and</font> <font style="FONT-SIZE: 10pt">June 30, 2007, the Company&rsquo;s outstanding borrowings ranged from $-0- to $10.5</font> <font style="FONT-SIZE: 10pt">million and $-0- million to $1.5 million, respectively. At June 28,
                2008 and December 29, 2007, there were $10.0 million and</font> <font style="FONT-SIZE: 10pt">$-0-</font> <font style="FONT-SIZE: 10pt">outstanding borrowings under this facility, respectively. At</font> <font style="FONT-SIZE: 10pt">June 28, 2008, there were</font> <font style="FONT-SIZE: 10pt">letters</font> <font style="FONT-SIZE: 10pt">of credit outstanding for $1.6</font> <font style="FONT-SIZE: 10pt">million.</font> <font style="FONT-SIZE: 10pt">At</font>
                <font style="FONT-SIZE: 10pt">June 28, 2008, the Company had availability for additional borrowings under the Revolving Credit Facility</font> <font style="FONT-SIZE: 10pt">of $13.4</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</font> <font style="FONT-SIZE: 10pt">June 28, 2008, the Company had a deferred tax asset totaling</font> <font style="FONT-SIZE: 10pt">$2.4</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 June 27, 2009</font> <font style="FONT-SIZE: 10pt">by offsetting</font> <font style="FONT-SIZE: 10pt">the 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 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; 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; 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 June 28, 2008 (in thousands):<br>
                &nbsp;</p>

                <p></p>

                <table cellspacing="0" cellpadding="0" width="600" border="0">
                    <tr>
                        <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>
                        <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" 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">$10,000</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">$10,000</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">&nbsp;</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">&nbsp;</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>
                        <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">11,753</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">3,793</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">$5,416</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">$2,544</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 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; 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">$21,753</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">$13,793</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">$5,416</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">$2,544</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. At June 28, 2008, there were $10.0 million outstanding borrowings under the line of credit and there were outstanding letters of
                credit for $1.6 million.</font></p>

                <p></p>
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                    <a name="PAGENUM"><font face="Times New Roman, Times, serif">40</font></a>
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                    <hr>
                </div>

                <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-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 June 28, 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></p>
                <!-- PAGE BREAK  -->

                <div title="PAGENUM" style="MARGIN-TOP: 12pt" align="center">
                    <a name="PAGENUM"><font face="Times New Roman, Times, serif">41</font></a>
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                    <hr>
                </div>

                <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">PART II<br>
                &nbsp;</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">OTHER INFORMATION</font></b></p>

                <p></p>

                <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.6in; TEXT-INDENT: -45px" align="justify"><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 Note</font> <font style="FONT-SIZE: 10pt">15</font> <font style="FONT-SIZE: 10pt">to the consolidated financial statements included in Item 1 of this report.<br>
                &nbsp;</font></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.<br>
                &nbsp;</font></p>

                <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><b><font style="FONT-SIZE: 11pt">ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS</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: 11pt">On April 28, 2008, the Company issued to MBH Solutions, Inc. (&ldquo;MBH&rdquo;), 50,000 shares (the &ldquo;Shares&rdquo;) of the common stock, par value $0.05, of the Company, at an aggregate valuation of $205,000, as part of the consideration for the acquisition of certain assets from MBH. The issuance of the Shares was made in reliance on an
                exemption from registration of the Shares under Rule 506 of Regulation D promulgated under the Securities Act of 1933, as amended.</font></p>

                <p></p>

                <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.6in; TEXT-INDENT: -39px" align="left"><b><font style="FONT-SIZE: 10pt">ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECU</font></b><b><font style="FONT-SIZE: 10pt">RI</font></b><b><font style="FONT-SIZE: 10pt">TY HOLDERS</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">The Company held its Annual Meeting of Shareholders on June 12, 2008.<br>
                &nbsp;<br>
                The following actions were taken:<br>
                &nbsp;</font></p>

                <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: -36px" align="left"><font style="FONT-SIZE: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following directors were elected to serve as Class C directors on the Board of Directors, and shall serve a term expiring at the Company&rsquo;s Annual Meeting in 2011 and until their respective successor shall be elected and qualified. Tabulated voting results were as
                follows:</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">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Leon Kopyt&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Class C)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(For</font> <font style="FONT-SIZE: 10pt">6,205,658;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Withheld</font> <font style="FONT-SIZE: 10pt">4,724,658)</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">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stanton Remer&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Class C)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(For</font> <font style="FONT-SIZE: 10pt">6,189,748;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Withheld</font> <font style="FONT-SIZE: 10pt">4,740,568)</font></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;&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></p>

                <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in" align="justify"><font style="FONT-SIZE: 10pt">The Class A director of the Company, Norman S. Berson, will continue to serve on the Board of Directors for a term expiring at the Company&rsquo;s Annual Meeting in 2009 and until his successor has been elected and qualified.</font></p>

                <p></p>

                <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in" align="justify"><font style="FONT-SIZE: 10pt">The Class B directors of the Company, Robert B. Kerr and Lawrence Needleman, will continue to serve on the Board of Directors for a term expiring at the Company&rsquo;s Annual Meeting in 2010 and until their successors have been elected and qualified.<br>
                &nbsp;</font></p>

                <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: -36px" align="left"><font style="FONT-SIZE: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Approval of Grant Thornton LLP as the independent auditing firm for the Company for the fiscal year ending December 27, 2008.</font></p>

                <p></p>

                <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 5in; TEXT-INDENT: -360px" align="left"><font style="FONT-SIZE: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Votes For &ndash; 10,836,372&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Votes Against &ndash; 82,787&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Abstentions &ndash; 11,157</font></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</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;</font> <font style="FONT-SIZE: 10pt">31.1&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;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;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;</font> <font style="FONT-SIZE: 10pt">32.2&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></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:</font> <font style="FONT-SIZE: 10pt"><a name="OLE_LINK7">August</a> 7,
                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;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)<br>
                &nbsp;</font></p>

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                </div>

                <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">Exhibit 31.1</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></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 this</font> <font style="FONT-SIZE: 10pt">quarterly</font> <font style="FONT-SIZE: 10pt">report on Form 10-Q</font> <font style="FONT-SIZE: 10pt">of RCM Technologies, Inc.;</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;</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">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))</font> <font style="FONT-SIZE: 10pt">and internal control over financial reporting (as defined in Exchange Act Rules
                13a-15(f) and 15d-15(f))</font> <font style="FONT-SIZE: 10pt">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;</font></p>

                <p></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><br>
                &nbsp;</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</font></p>

                <p></p>

                <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in" align="left"><font style="FONT-SIZE: 10pt">(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></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"><font style="FONT-FAMILY: 'TIMES'">Date:</font> <font style="FONT-FAMILY: 'TIMES'">August</font> <font style="FONT-FAMILY: 'TIMES'">7, 2008</font></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">&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;&nbsp;/s/ Leon Kopyt</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">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,</font> <font style="FONT-SIZE: 10pt">President</font> <font style="FONT-SIZE: 10pt">and Chief Executive Officer</font></p>
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                <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>
                &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 this</font> <font style="FONT-SIZE: 10pt">quarterly</font> <font style="FONT-SIZE: 10pt">report on Form 10-Q</font> <font style="FONT-SIZE: 10pt">of RCM Technologies, Inc.;</font></p>

                <p></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; 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;</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">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))</font> <font style="FONT-SIZE: 10pt">and internal control over financial reporting (as defined in Exchange Act Rules
                13a-15(f) and 15d-15(f))</font> <font style="FONT-SIZE: 10pt">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></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">August 7, 2008&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></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;&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;&nbsp;&nbsp;/s/
                Stanton Remer&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>

                <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 3in" align="left"><u><font style="FONT-SIZE: 10pt">______________________________</font></u></p>

                <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 3in" align="left"><font style="FONT-SIZE: 10pt">Stanton Remer<br>
                Executive Vice President<br>
                Chief Financial Officer, Treasurer, and Secretary</font></p>
                <!-- PAGE BREAK  -->

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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">Exhibit 32.1</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="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 June 28, 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>
                President and 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">August 7, 2008</font><br>
                &nbsp;</p>
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                <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 June 28, 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:</font> <font style="FONT-SIZE: 10pt">August 7, 2008</font><br>
                <font style="FONT-SIZE: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>

                <p></p>

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