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<SEC-DOCUMENT>0000700841-08-000022.txt : 20080507
<SEC-HEADER>0000700841-08-000022.hdr.sgml : 20080507
<ACCEPTANCE-DATETIME>20080507162158
ACCESSION NUMBER:		0000700841-08-000022
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20080329
ITEM INFORMATION:		Results of Operations and Financial Condition
FILED AS OF DATE:		20080507
DATE AS OF CHANGE:		20080507

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:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-10245
		FILM NUMBER:		08810247

	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>8-K
<SEQUENCE>1
<FILENAME>form8k032908.htm
<DESCRIPTION>FORM8K032908PRESREL
<TEXT>
<html>
    <head>
        <title></title>
        <!-- Created by EDGAR Ease Plus (EDGAR Ease+) -->
        <!-- Control Number:                                                                  -->
        <!-- Rev Number:                                                                      -->
        <!-- Client Name:                                                                     -->
        <!-- Project Name:                                                                    -->
        <!-- Firm Name:                                                                       -->
    </head>

    <body text="#000000" vlink="#800000" link="#0000ff" bgcolor="#ffffff">
        <div style="WIDTH: 600px">
            <p></p>

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

            <p></p>

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

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b>WASHINGTON, DC 20549</b></p>

            <p></p>

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

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b>FORM 8-K</b></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">CURRENT REPORT</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b>PURSUANT TO SECTION 13 OR 15(d) OF THE<br>
            SECURITIES EXCHANGE ACT OF 1934</b></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">Date of report (Date of earliest event reported): <u>May 7, 2008</u></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><u>RCM Technologies, Inc.</u></p>

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

            <p></p>

            <p></p>

            <table cellspacing="0" cellpadding="0" width="600" align="center" border="0">
                <tr>
                    <td style="PADDING-RIGHT: 0.08in; PADDING-LEFT: 0.08in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="148">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>Nevada</u><br>
                        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(State or Other<br>
                        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Jurisdiction of<br>
                        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Incorporation)<br>
                        </p>
                    </td>

                    <td style="PADDING-RIGHT: 0.08in; PADDING-LEFT: 0.08in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="148">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <u>1-10245</u><br>
                        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Commission File<br>
                        &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Number)</p>
                    </td>

                    <td style="PADDING-RIGHT: 0.08in; PADDING-LEFT: 0.08in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="148" colspan="3">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><u>95-1480559</u></p>

                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">(I.R.S. Employer<br>
                        Identification No.)</p>
                    </td>
                </tr>

                <tr>
                    <td style="PADDING-RIGHT: 0.08in; PADDING-LEFT: 0.08in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="425" colspan="4">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2500 McClellan Avenue, Suite 350</p>
                    </td>

                    <td style="PADDING-RIGHT: 0.08in; PADDING-LEFT: 0.08in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="197" colspan="2">&nbsp;</td>
                </tr>

                <tr>
                    <td style="PADDING-RIGHT: 0.08in; PADDING-LEFT: 0.08in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: #000000 0.8pt solid" valign="top" width="384" colspan="3">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pennsauken, NJ</p>
                    </td>

                    <td style="PADDING-RIGHT: 0.08in; PADDING-LEFT: 0.08in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="41">&nbsp;</td>

                    <td style="PADDING-RIGHT: 0.08in; PADDING-LEFT: 0.08in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in; BORDER-BOTTOM: #000000 0.8pt solid" valign="top" width="197" colspan="2">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">08109-4613</p>
                    </td>
                </tr>

                <tr>
                    <td style="PADDING-RIGHT: 0.08in; PADDING-LEFT: 0.08in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="425" colspan="4">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Address of Principal Executive Offices)</p>
                    </td>

                    <td style="PADDING-RIGHT: 0.08in; PADDING-LEFT: 0.08in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="197" colspan="2">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">(Zip Code)</p>
                    </td>
                </tr>
            </table>
            <br>
            <br>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">Registrant&rsquo;s telephone number, including area code: <u>(856) 486-1777</u></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 11pt">Check the appropriate box below if the Form&nbsp;8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):</font></p>

            <p></p>

            <table cellspacing="0" cellpadding="0" width="600" border="0">
                <tr>
                    <td valign="middle" width="18">&nbsp;</td>

                    <td valign="middle" width="624">&nbsp;</td>
                </tr>

                <tr>
                    <td valign="top" width="18">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 11pt">?&nbsp;</font></p>
                    </td>

                    <td valign="top" width="624">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 11pt">Written communications pursuant to Rule&nbsp;425 under the Section Act (17&nbsp;CFR&nbsp;230.425).</font></p>
                    </td>
                </tr>

                <tr>
                    <td valign="top" width="18">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 11pt">?&nbsp;</font></p>
                    </td>

                    <td valign="top" width="624">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 11pt">Soliciting material pursuant to Rule&nbsp;14a-12 under the Exchange Act (17&nbsp;CFR&nbsp;240.14a-12).</font></p>
                    </td>
                </tr>

                <tr>
                    <td valign="top" width="18">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 11pt">?&nbsp;</font></p>
                    </td>

                    <td valign="top" width="624">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 11pt">Pre-commencement communications pursuant to Rule&nbsp;14d-2(b) under the Exchange Act (17&nbsp;CFR&nbsp;240-14d-2(b)).</font></p>
                    </td>
                </tr>

                <tr>
                    <td valign="top" width="18">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 11pt">?&nbsp;</font></p>
                    </td>

                    <td valign="top" width="624">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 11pt">Pre-commencement communications pursuant to Rule&nbsp;13e-4(c) under the Exchange Act (17&nbsp;CFR&nbsp;240-13e-4(c)).</font></p>
                    </td>
                </tr>
            </table>
            <br>
            <br>

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

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 1in; TEXT-INDENT: -72px" align="left"><b>Item 2.02.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Results of Operations and Financial Condition.</b></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">On May 7, 2008, the Registrant issued a press release regarding its financial results for the thirteen weeks ended March 29, 2008. A copy of the press release is furnished as Exhibit 99 to this report.</p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><i>Use of Non-GAAP Financial Information</i></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">To supplement its consolidated financial statements presented in accordance with GAAP, the Registrant uses certain non-GAAP financial measures, including EBITDA and EBITDA per shares, which are derived from results based on GAAP. Non-GAAP adjustments are provided to enhance the user&rsquo;s overall understanding of the Registrant&rsquo;s current financial performance and its prospects
            for the future, including its results of operations, cash generated and resources available for strategic opportunities including reinvestment in the business and acquisitions. In addition, the Registrant has historically reported similar non-GAAP results to the investment community, and, as a result, believes the inclusion of non-GAAP presentations provides consistency in its financial reporting. Further, the non-GAAP results are one of the primary indicators management uses for
            planning and forecasting in future periods. The presentation of this additional information is not meant to be considered in isolation or as a substitute for results prepared in accordance with accounting principles generally accepted in the United States.</p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">The information set forth under this &ldquo;Item 2.02. Results of Operations and Financial Condition&rdquo; (including the exhibit) shall not be deemed to be &ldquo;filed&rdquo; for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be incorporated by reference in any filing made by the Registrant pursuant to the Securities Act of 1933, as
            amended, other than to the extent that such filing incorporates by reference any or all of such information by express reference thereto.</p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><b>Item 9.01.</b><b>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</b> <b>Financial Statements and Exhibits.<br>
            &nbsp;</b></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">(a) Financial Statements of Businesses Acquired.<br>
            &nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">None.<br>
            &nbsp;<br>
            (b) Pro Forma Financial Information.<br>
            &nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">None.<br>
            &nbsp;<br>
            (c) Exhibits.<br>
            &nbsp;</p>

            <p></p>

            <table cellspacing="0" cellpadding="0" width="600" border="0">
                <tr>
                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="151">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">Exhibit Number</p>
                    </td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="487">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">Exhibit Title</p>
                    </td>
                </tr>

                <tr>
                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="151">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">99</p>
                    </td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="487">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">Press Release by the Registrant, dated May 7, 2008, furnished in accordance with Item 2.02 of this Current Report on Form 8-K.</p>
                    </td>
                </tr>
            </table>
            <!-- PAGE BREAK  --><!-- EEDocs PBStart--><br>
            <br>
            <hr align="center" width="100%" noshade size="2">

            <p style="PAGE-BREAK-AFTER: always"></p>
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            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<b>SIGNATURES</b></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 36px" align="left">Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.</p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 2.5in; TEXT-INDENT: 36px" align="left"><b>RCM TECHNOLOGIES, INC.</b></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 2.5in; TEXT-INDENT: 36px" align="left">By:&nbsp;<u>&nbsp;/s/ Stanton Remer&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 2.5in; TEXT-INDENT: 36px" align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stanton Remer</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 2.5in; TEXT-INDENT: 36px" align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Executive Vice President,</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 2.5in; TEXT-INDENT: 36px" align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Chief Financial Officer, Treasurer and</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 2.5in; TEXT-INDENT: 36px" align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Secretary</p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">Dated: May 7, 2008</p>
            <!-- PAGE BREAK  --><!-- EEDocs PBStart-->
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            <p style="PAGE-BREAK-AFTER: always"></p>
            <!-- EEDocs PBEnd-->

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b>Exhibit Index</b></p>

            <p></p>

            <p></p>

            <table cellspacing="0" cellpadding="0" width="600" border="0">
                <tr>
                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="151">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">Exhibit Number</p>
                    </td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="487">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">Exhibit Title</p>
                    </td>
                </tr>

                <tr>
                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="151">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">99</p>
                    </td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="487">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">Press Release by the Registrant, dated May 7, 2008, furnished in accordance with Item 2.02 of this Current Report on Form 8-K.</p>
                    </td>
                </tr>
            </table>
            <br>
            <br>

            <p></p>
        </div>
    </body>
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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>2
<FILENAME>pressrel032908.htm
<DESCRIPTION>PRESS RELEASE
<TEXT>
<html>
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    <body text="#000000" vlink="#800000" link="#0000ff" bgcolor="#ffffff">
        <div style="WIDTH: 600px">
            <div style="WIDTH: 600px">
                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">&nbsp;</p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 24pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px; FONT-FAMILY: 'ARIAL'" align="center"><font style="FONT-SIZE: 20pt">P R E S S&nbsp;&nbsp; R E L E A S E</font></p>

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

                <p style="MARGIN-TOP: 0pt; FONT-WEIGHT: bold; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">RCM TECHNOLOGIES, INC. ANNOUNCES RESULTS</p>

                <p style="MARGIN-TOP: 0pt; FONT-WEIGHT: bold; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">FOR THE THIRTEEN WEEKS ENDED MARCH 29, 2008</p>

                <p></p>

                <p style="FONT-SIZE: 12pt; MARGIN: 0pt 0.5in 0pt 0in; TEXT-INDENT: 0px" align="justify">Pennsauken, NJ - May 7, 2008 -- RCM Technologies, Inc. (NASD: RCMT) today announced financial results for the thirteen weeks ended March 29, 2008.</p>

                <p></p>

                <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">The Company announced revenues of $49.1 million for the thirteen weeks ended March 29, 2008, down from $54.5 million for the thirteen weeks ended March 31, 2007 (comparable prior year period). Net loss for the thirteen weeks ended March 29, 2008 was $2.7 million, or $0.22 net loss per diluted share, as compared to net income of $1.6 million, or $0.13 per diluted share, for the
                comparable prior year period.<br>
                &nbsp;<br>
                The Company recorded a $6.1 million bad debt charge before estimated income tax benefit of $2.4 million, or $3.7 million net of estimated income tax benefit during the thirteen weeks ended March 29, 2008 relating to a note receivable that the Company has determined as uncollectible. The loss resulted in a reduction of earnings per share for the thirteen weeks ended March 29, 2008 of approximately $0.29 per diluted share.<br>
                &nbsp;</p>

                <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">The operating loss for the thirteen weeks ended March 29, 2008 was $4.6 million, or $0.37 net loss per diluted share, down from operating income of $1.9 million, or $0.16 per diluted share, for the comparable prior year period.<br>
                &nbsp;</p>

                <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">Net loss before stock-based compensation <sup>(1)</sup> for the thirteen weeks ended March 29, 2008 was $2.6 million, or $0.21 net loss per diluted share, and excludes net stock-based compensation expense of $93,000. <a name="OLE_LINK3"></a><a name="OLE_LINK4">Net income before equity-based compensation</a> <sup>(1)</sup> for the thirteen weeks ended March 31, 2007 was $1.8
                million, or $0.14 per diluted share, and excludes net equity-based compensation expense of $186,000.</p>

                <p></p>

                <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">Net income for the thirteen weeks ended March 31, 2007 includes income of $480,000 ($800,000, net of income taxes of $320,000), or $0.04 per diluted share, from a legal settlement. No such income was realized during the 2008 year period.</p>

                <p style="MARGIN-TOP: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">For the thirteen weeks ended March 29, 2008, earnings before interest, income taxes, depreciation and amortization, or EBITDA, was a loss of $4.3 million, or $0.35 net loss per diluted share, as compared to $2.3 million, or $0.18 per diluted share, <a name="OLE_LINK1"></a><a name="OLE_LINK2">for the</a> comparable prior year period. EBITDA for the 2008 period includes the bad debt
                charge as discussed above. EBITDA for the 2007 period includes income of $800,000 from a legal settlement, as discussed above.</p>

                <p></p>
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                <p style="MARGIN-TOP: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><b>Leon Kopyt, Chairman and CEO of RCM, commented:</b> &ldquo;We are disappointed to report a loss in the first quarter due to a bad debt charge related to a note receivable from a former customer. We are experiencing unexpected delays in closing potential business opportunities despite commitments from certain customers who have decided to defer final contractual releases. We
                expect to close most of these business opportunities in the second quarter.</p>

                <p style="MARGIN-TOP: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">"While we navigate through current business challenges we are focused on effecting internal growth and seeking complementary acquisitions, similar to our recent NuSoft&nbsp;and MBH&nbsp;transactions, that will advance our business strategy of creating value-oriented, leverageable and repeatable solutions.&rdquo;</p>

                <p></p>

                <p style="MARGIN-TOP: 0pt; FONT-WEIGHT: bold; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><b><i><u>About RCM</u></i></b></p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify">RCM Technologies, Inc. is a premier provider of business and technology solutions designed to enhance and maximize the operational performance of its customers through the adaptation and deployment of advanced <i>information technology and engineering services</i>. RCM is an innovative leader in the design, development and delivery of these solutions to commercial
                and government sectors for more than 35 years. RCM&rsquo;s offices are located in major metropolitan centers throughout North America. Additional information can be found at <u><font style="COLOR: #0000ff">www.rcmt.com</font></u>.</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: 9pt">The Statements contained in this release that are not purely historical are forward-looking statements within the Private Securities Litigation Reform Act of 1995 and are subject to various risks, uncertainties and other factors that could cause the Company's actual results, performance or achievements to differ materially from those
                expressed or implied by such forward-looking statements. Forward looking statements include, but are not limited to, those relating to demand for the Company&rsquo;s services, expected demand for our services and expectations regarding our revenues, the Company's ability to continue to utilize goodwill, to continue to increase gross margins, to achieve and manage growth, to develop and market new applications and services, risks relating to the acquisition and integration of
                acquired businesses, the ability of the Company to consummate acquisitions as to which it executes non-binding letters of intent, demand for new services and applications, timing of demand for services, industry strength and competition and general economic factors. Investors are directed to consider such risks, uncertainties and other factors described in documents filed by the Company with the Securities and Exchange Commission.</font></p>

                <p></p>

                <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 9pt">The Company applies</font> <font style="FONT-SIZE: 9pt">the provisions of SFAS No. 123(R), "Share-Based Payment," on a modified prospective basis, which required the Company to record equity-based compensation expense for all awards granted after the date of adoption and for the unvested portion of previously granted awards outstanding as of the date of
                adoption.</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: 9pt">For the purposes of performing the calculation ofnetincome beforeequity-basedcompensationexpense,</font> <font style="FONT-SIZE: 9pt">all equity-based compensation expense, net of income tax, is added back to net income as calculated in accordance withaccountingprinciples</font> <font style="FONT-SIZE: 9pt">generally accepted in the
                United States</font> <font style="FONT-SIZE: 9pt">(USGAAP). Netincome beforeequity-basedcompensationexpenseisnotameasurement calculated in accordance withUSGAAP, andisnot intended to be a replacement for, orto beconsidered to be more important than, net income calculated in accordance withUSGAAP. As the calculation ofnetincome beforeequity-basedcompensationexpense is</font> <font style="FONT-SIZE: 9pt">notperformedin accordance withUSGAAP, the Company believes that theutilityof
                the calculation is significantly limited, andthat the measureshould only be used to comparetonet income year-over-year on a consistent basis. To mitigate this limitation, the Company has provideda reconciliation of netincome beforeequity-basedcompensationexpense tonet income calculated in accordance withUSGAAP, which should be the primary measurement utilized to analyze the Company's financial results.</font> <font style="FONT-SIZE: 9pt">The Company does not utilizenetincome
                beforeequity-basedcompensationexpense for any other purpose.</font></p>

                <p></p>

                <p style="MARGIN: 0pt 0.5in" align="center"><b><font style="FONT-SIZE: 11pt">Tables to Follow</font></b></p>
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                <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b>RCM Technologies, Inc.<br>
                Consolidated Statements of Income</b></p>

                <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b>(Unaudited)</b></p>

                <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b><font style="FONT-SIZE: 10pt">(In Thousands, Except Per Share Amounts)</font></b></p>

                <p></p>

                <p></p>

                <table cellspacing="0" cellpadding="0" width="600" border="0">
                    <tr bgcolor="#ccffff">
                        <td valign="middle" width="307">&nbsp;</td>

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

                        <td style="BORDER-BOTTOM: black 0.5pt solid" valign="middle" width="252" colspan="4">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b><font style="COLOR: #000000">Thirteen Weeks Ended</font></b></p>
                        </td>

                        <td valign="middle" width="12">&nbsp;</td>
                    </tr>

                    <tr>
                        <td valign="middle" width="307">&nbsp;</td>

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

                        <td style="BORDER-BOTTOM: black 0.5pt solid" valign="middle" width="120">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b><font style="COLOR: #000000">March 29, 2008</font></b></p>
                        </td>

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

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

                        <td style="BORDER-BOTTOM: black 0.5pt solid" valign="middle" width="108">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="COLOR: #000000">March 31, 2007</font></p>
                        </td>

                        <td valign="middle" width="12">&nbsp;</td>
                    </tr>

                    <tr bgcolor="#ccffff">
                        <td valign="middle" width="307">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="COLOR: #000000">Revenues</font></p>
                        </td>

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

                        <td style="BORDER-TOP: medium none" valign="middle" width="120">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><b><font style="COLOR: #000000">$49,114</font></b></p>
                        </td>

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

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

                        <td style="BORDER-TOP: medium none" valign="middle" width="108">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="COLOR: #000000">$54,493</font></p>
                        </td>

                        <td valign="middle" width="12">&nbsp;</td>
                    </tr>

                    <tr>
                        <td valign="middle" width="307">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="COLOR: #000000">Gross profit</font><sup><font style="COLOR: #000000">(1)</font></sup></p>
                        </td>

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

                        <td valign="middle" width="120">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><b><font style="COLOR: #000000">12,298</font></b></p>
                        </td>

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

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

                        <td valign="middle" width="108">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="COLOR: #000000">12,376</font></p>
                        </td>

                        <td valign="middle" width="12">&nbsp;</td>
                    </tr>

                    <tr bgcolor="#ccffff">
                        <td valign="middle" width="307">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="COLOR: #000000">Selling, general and administrative</font><sup><font style="COLOR: #000000">(2)</font></sup></p>
                        </td>

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

                        <td valign="middle" width="120">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><b><font style="COLOR: #000000">10,485</font></b></p>
                        </td>

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

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

                        <td valign="middle" width="108">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="COLOR: #000000">10,094</font></p>
                        </td>

                        <td valign="middle" width="12">&nbsp;</td>
                    </tr>

                    <tr>
                        <td valign="middle" width="307">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="COLOR: #000000">Bad debt - note receivable</font></p>
                        </td>

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

                        <td valign="middle" width="120">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><b><font style="COLOR: #000000">6,090</font></b></p>
                        </td>

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

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

                        <td valign="middle" width="108">&nbsp;</td>

                        <td valign="middle" width="12">&nbsp;</td>
                    </tr>

                    <tr bgcolor="#ccffff">
                        <td valign="middle" width="307">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="COLOR: #000000">Depreciation and amortization</font></p>
                        </td>

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

                        <td valign="middle" width="120">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><b><font style="COLOR: #000000">361</font></b></p>
                        </td>

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

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

                        <td valign="middle" width="108">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="COLOR: #000000">354</font></p>
                        </td>

                        <td valign="middle" width="12">&nbsp;</td>
                    </tr>

                    <tr>
                        <td valign="middle" width="307">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="COLOR: #000000">Operating</font> <font style="COLOR: #000000">(loss)</font> <font style="COLOR: #000000">income</font></p>
                        </td>

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

                        <td valign="middle" width="120">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><b><font style="COLOR: #000000">(4,638</font></b></p>
                        </td>

                        <td valign="middle" width="12">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><b><font style="COLOR: #000000">)</font></b></p>
                        </td>

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

                        <td valign="middle" width="108">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="COLOR: #000000">1,928</font></p>
                        </td>

                        <td valign="middle" width="12">&nbsp;</td>
                    </tr>

                    <tr bgcolor="#ccffff">
                        <td valign="middle" width="307">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="COLOR: #000000">Interest income (expense), net</font></p>
                        </td>

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

                        <td valign="middle" width="120">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><b><font style="COLOR: #000000">26</font></b></p>
                        </td>

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

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

                        <td valign="middle" width="108">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="COLOR: #000000">(8</font></p>
                        </td>

                        <td valign="middle" width="12">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="COLOR: #000000">)</font></p>
                        </td>
                    </tr>

                    <tr>
                        <td valign="middle" width="307">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="COLOR: #000000">Gain (loss) on foreign currency transactions</font></p>
                        </td>

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

                        <td valign="bottom" width="120">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><b><font style="COLOR: #000000">1</font></b></p>
                        </td>

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

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

                        <td valign="bottom" width="108">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="COLOR: #000000">(2</font></p>
                        </td>

                        <td valign="middle" width="12">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="COLOR: #000000">)</font></p>
                        </td>
                    </tr>

                    <tr bgcolor="#ccffff">
                        <td valign="middle" width="307">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="COLOR: #000000">Income from legal settlement</font></p>
                        </td>

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

                        <td valign="bottom" width="120">&nbsp;</td>

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

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

                        <td valign="bottom" width="108">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="COLOR: #000000">800</font></p>
                        </td>

                        <td valign="middle" width="12">&nbsp;</td>
                    </tr>

                    <tr>
                        <td valign="middle" width="307">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="COLOR: #000000">(Loss) income before income taxes</font></p>
                        </td>

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

                        <td valign="bottom" width="120">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><b><font style="COLOR: #000000">(4,611</font></b></p>
                        </td>

                        <td valign="middle" width="12">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><b><font style="COLOR: #000000">)</font></b></p>
                        </td>

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

                        <td valign="bottom" width="108">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="COLOR: #000000">2,718</font></p>
                        </td>

                        <td valign="middle" width="12">&nbsp;</td>
                    </tr>

                    <tr bgcolor="#ccffff">
                        <td valign="middle" width="307">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="COLOR: #000000">Income taxes</font> <font style="COLOR: #000000">(benefit) expense</font></p>
                        </td>

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

                        <td valign="middle" width="120">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><b><font style="COLOR: #000000">(1,942</font></b></p>
                        </td>

                        <td valign="middle" width="12">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><b><font style="COLOR: #000000">)</font></b></p>
                        </td>

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

                        <td valign="middle" width="108">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="COLOR: #000000">1,147</font></p>
                        </td>

                        <td valign="middle" width="12">&nbsp;</td>
                    </tr>

                    <tr>
                        <td valign="middle" width="307">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="COLOR: #000000">Net</font> <font style="COLOR: #000000">(loss)</font> <font style="COLOR: #000000">income</font></p>
                        </td>

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

                        <td style="BORDER-TOP: medium none; BORDER-BOTTOM: medium none" valign="middle" width="120">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><b><font style="COLOR: #000000">($2,669</font></b></p>
                        </td>

                        <td valign="middle" width="12">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><b><font style="COLOR: #000000">)</font></b></p>
                        </td>

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

                        <td style="BORDER-TOP: medium none; BORDER-BOTTOM: medium none" valign="middle" width="108">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="COLOR: #000000">1,571</font></p>
                        </td>

                        <td valign="middle" width="12">&nbsp;</td>
                    </tr>

                    <tr bgcolor="#ccffff">
                        <td valign="middle" width="307">&nbsp;</td>

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

                        <td style="BORDER-TOP: medium none" valign="middle" width="120">&nbsp;</td>

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

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

                        <td style="BORDER-TOP: medium none" valign="middle" width="108">&nbsp;</td>

                        <td valign="middle" width="12">&nbsp;</td>
                    </tr>

                    <tr>
                        <td valign="middle" width="307">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="COLOR: #000000">Earnings per share (diluted)</font></p>
                        </td>

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

                        <td valign="middle" width="120">&nbsp;</td>

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

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

                        <td valign="middle" width="108">&nbsp;</td>

                        <td valign="middle" width="12">&nbsp;</td>
                    </tr>

                    <tr bgcolor="#ccffff">
                        <td style="BORDER-BOTTOM: medium none" valign="middle" width="307">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="COLOR: #000000">Net(loss)income</font></p>
                        </td>

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

                        <td style="BORDER-BOTTOM: medium none" valign="middle" width="120">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><b><font style="COLOR: #000000">($.22</font></b></p>
                        </td>

                        <td style="BORDER-BOTTOM: medium none" valign="middle" width="12">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="COLOR: #000000">)</font></p>
                        </td>

                        <td style="BORDER-BOTTOM: medium none" valign="middle" width="12">&nbsp;</td>

                        <td style="BORDER-BOTTOM: medium none" valign="middle" width="108">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="COLOR: #000000">$.13</font></p>
                        </td>

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

                <p></p>

                <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b>RCM Technologies, Inc.<br>
                Summary Consolidated Balance Sheet Data (Unaudited)<br>
                (In Thousands)</b></p>

                <p></p>

                <table cellspacing="0" cellpadding="0" width="522" border="0">
                    <tr bgcolor="#ccffff">
                        <td valign="middle" width="294">&nbsp;</td>

                        <td valign="middle" width="90">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b><font style="COLOR: #000000">March</font></b> <b><font style="COLOR: #000000">29,</font></b></p>
                        </td>

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

                        <td valign="middle" width="102">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">December 29,</p>
                        </td>

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

                    <tr>
                        <td valign="middle" width="294">&nbsp;</td>

                        <td style="BORDER-BOTTOM: black 0.5pt solid" valign="middle" width="90">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b>200</b><b>8</b></p>
                        </td>

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

                        <td style="BORDER-BOTTOM: black 0.5pt solid" valign="middle" width="102">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">2007</p>
                        </td>

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

                    <tr bgcolor="#ccffff">
                        <td valign="middle" width="294">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left">Cash and equivalents</p>
                        </td>

                        <td valign="middle" width="90">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><b>$4,658</b></p>
                        </td>

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

                        <td valign="middle" width="102">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">$11,642</p>
                        </td>

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

                    <tr>
                        <td valign="middle" width="294">
                            <p style="MARGIN: 0pt 0.5in 0pt 0in; TEXT-INDENT: 0px" align="left">Accounts receivable, net</p>
                        </td>

                        <td valign="middle" width="90">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><b>49,910</b></p>
                        </td>

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

                        <td valign="middle" width="102">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">45,468</p>
                        </td>

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

                    <tr bgcolor="#ccffff">
                        <td valign="middle" width="294">
                            <p style="MARGIN: 0pt 0.5in 0pt 0in; TEXT-INDENT: 0px" align="left">Working capital</p>
                        </td>

                        <td valign="middle" width="90">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><b>40,360</b></p>
                        </td>

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

                        <td valign="middle" width="102">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">43,541</p>
                        </td>

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

                    <tr>
                        <td valign="middle" width="294">
                            <p style="MARGIN: 0pt 0.5in 0pt 0in; TEXT-INDENT: 0px" align="left">Goodwill and intangible assets</p>
                        </td>

                        <td valign="middle" width="90">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><b>47,665</b></p>
                        </td>

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

                        <td valign="middle" width="102">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">39,937</p>
                        </td>

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

                    <tr bgcolor="#ccffff">
                        <td valign="middle" width="294">
                            <p style="MARGIN: 0pt 0.5in 0pt 0in; TEXT-INDENT: 0px" align="left">Total assets</p>
                        </td>

                        <td valign="middle" width="90">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><b>111,768</b></p>
                        </td>

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

                        <td valign="middle" width="102">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">109,714</p>
                        </td>

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

                    <tr>
                        <td valign="middle" width="294">
                            <p style="MARGIN: 0pt 0.5in 0pt 0in; TEXT-INDENT: 0px" align="left">Total liabilities</p>
                        </td>

                        <td valign="middle" width="90">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><b>18,556</b></p>
                        </td>

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

                        <td valign="middle" width="102">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">17,666</p>
                        </td>

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

                    <tr bgcolor="#ccffff">
                        <td valign="middle" width="294">
                            <p style="MARGIN: 0pt 0.5in 0pt 0in; TEXT-INDENT: 0px" align="left">Stockholders&rsquo; equity</p>
                        </td>

                        <td valign="middle" width="90">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><b>$93,212</b></p>
                        </td>

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

                        <td valign="middle" width="102">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right">$92,048</p>
                        </td>

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

                <p></p>

                <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.1in; TEXT-INDENT: -9px" align="left"><b><sup><font style="FONT-SIZE: 8pt">(</font></sup></b><b><sup><font style="FONT-SIZE: 8pt">1</font></sup></b><b><sup><font style="FONT-SIZE: 8pt">)</font></sup></b> <b><font style="FONT-SIZE: 8pt">Reflects stock based compensation</font></b><b><font style="FONT-SIZE: 8pt">expense</font></b> <b><font style="FONT-SIZE: 8pt">of
                $</font></b><b><font style="FONT-SIZE: 8pt">14</font></b> <b><font style="FONT-SIZE: 8pt">and</font></b> <b><font style="FONT-SIZE: 8pt">$</font></b><b><font style="FONT-SIZE: 8pt">13</font></b> <b><font style="FONT-SIZE: 8pt">included in cost of services for the thirteen weeks ended</font></b><b><font style="FONT-SIZE: 8pt">March 29, 2008</font></b> <b><font style="FONT-SIZE: 8pt">and</font></b><b><font style="FONT-SIZE: 8pt">March 31,
                2007</font></b><b><font style="FONT-SIZE: 8pt">, respectively.</font></b></p>

                <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.1in; TEXT-INDENT: -9px" align="left"><b><sup><font style="FONT-SIZE: 8pt">(</font></sup></b><b><sup><font style="FONT-SIZE: 8pt">2</font></sup></b><b><sup><font style="FONT-SIZE: 8pt">)</font></sup></b><b><font style="FONT-SIZE: 8pt">Includes stock based compensation</font></b><b><font style="FONT-SIZE: 8pt">expense</font></b>
                <b><font style="FONT-SIZE: 8pt">of</font></b><b><font style="FONT-SIZE: 8pt">$</font></b><b><font style="FONT-SIZE: 8pt">79</font></b> <b><font style="FONT-SIZE: 8pt">and $</font></b><b><font style="FONT-SIZE: 8pt">173</font></b> <b><font style="FONT-SIZE: 8pt">for the thirteen weeks ended</font></b><b><font style="FONT-SIZE: 8pt">March 29, 2008</font></b> <b><font style="FONT-SIZE: 8pt">and</font></b><b><font style="FONT-SIZE: 8pt">March 31,
                2007</font></b><b><font style="FONT-SIZE: 8pt">, respectively.</font></b></p>
                <!-- PAGE BREAK  --><!-- EEDocs PBStart-->
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                <p style="PAGE-BREAK-AFTER: always"></p>
                <!-- EEDocs PBEnd-->

                <p style="MARGIN: 0pt 0.5in" align="center"><b>RCM Technologies, Inc.</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>Reconciliation of EBITDA to Net Income and Cash Provided by Operating Activities</b></p>

                <p style="FONT-SIZE: 12pt; MARGIN: 0pt 0.5in 0pt 0in; TEXT-INDENT: 0px" align="center"><b>(Unaudited)</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">As used in this report,EBITDA means earnings before interest income, interest expense, income taxes, depreciation 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 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 EBITDA of 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, nor 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. The following is a reconciliation of EBITDA to both net income and cash flow provided by operating activities.</font></p>

                <p></p>

                <p></p>

                <table cellspacing="0" cellpadding="0" width="600" border="0">
                    <tr bgcolor="#ccffff">
                        <td valign="top" width="18">&nbsp;</td>

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

                        <td valign="middle" width="258">&nbsp;</td>

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

                        <td style="BORDER-BOTTOM: black 0.5pt solid" valign="middle" width="252" colspan="4">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b><font style="FONT-SIZE: 11pt; COLOR: #000000">Thirteen Weeks Ended</font></b></p>
                        </td>

                        <td valign="middle" width="12">&nbsp;</td>
                    </tr>

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

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

                        <td valign="middle" width="258">&nbsp;</td>

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

                        <td style="BORDER-BOTTOM: black 0.5pt solid" valign="middle" width="120">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b><font style="FONT-SIZE: 11pt; COLOR: #000000">March 29, 2008</font></b></p>
                        </td>

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

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

                        <td style="BORDER-BOTTOM: black 0.5pt solid" valign="middle" width="108">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 11pt; COLOR: #000000">March 31, 2007</font></p>
                        </td>

                        <td valign="middle" width="12">&nbsp;</td>
                    </tr>

                    <tr bgcolor="#ccffff">
                        <td valign="middle" width="294" colspan="3">&nbsp;</td>

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

                        <td style="BORDER-BOTTOM: black 0.5pt solid" valign="middle" width="252" colspan="4">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 11pt">(In Thousands)</font></p>
                        </td>

                        <td valign="middle" width="12">&nbsp;</td>
                    </tr>

                    <tr>
                        <td valign="top" width="294" colspan="3">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 11pt; COLOR: #000000">EBITDA</font><sup><font style="FONT-SIZE: 11pt; COLOR: #000000">(1)</font></sup> <sup><font style="FONT-SIZE: 11pt; COLOR: #000000">(2)</font></sup></p>
                        </td>

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

                        <td style="BORDER-TOP: medium none" valign="middle" width="120">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><b><font style="FONT-SIZE: 11pt; COLOR: #000000">($4,276</font></b></p>
                        </td>

                        <td valign="middle" width="12">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 11pt; COLOR: #000000">)</font></p>
                        </td>

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

                        <td style="BORDER-TOP: medium none" valign="middle" width="108">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 11pt; COLOR: #000000">$2,280</font></p>
                        </td>

                        <td valign="middle" width="12">&nbsp;</td>
                    </tr>

                    <tr bgcolor="#ccffff">
                        <td valign="top" width="294" colspan="3">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 11pt; COLOR: #000000">Depreciation and amortization</font></p>
                        </td>

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

                        <td valign="middle" width="120">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><b><font style="FONT-SIZE: 11pt; COLOR: #000000">361</font></b></p>
                        </td>

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

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

                        <td valign="middle" width="108">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 11pt; COLOR: #000000">354</font></p>
                        </td>

                        <td valign="middle" width="12">&nbsp;</td>
                    </tr>

                    <tr>
                        <td valign="top" width="294" colspan="3">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 11pt; COLOR: #000000">Interest(income) expense</font> <font style="FONT-SIZE: 11pt; COLOR: #000000">,</font> <font style="FONT-SIZE: 11pt; COLOR: #000000">net</font></p>
                        </td>

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

                        <td valign="middle" width="120">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><b><font style="FONT-SIZE: 11pt; COLOR: #000000">(26</font></b></p>
                        </td>

                        <td valign="middle" width="12">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><b><font style="FONT-SIZE: 11pt; COLOR: #000000">)</font></b></p>
                        </td>

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

                        <td valign="middle" width="108">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 11pt; COLOR: #000000">8</font></p>
                        </td>

                        <td valign="middle" width="12">&nbsp;</td>
                    </tr>

                    <tr bgcolor="#ccffff">
                        <td valign="top" width="294" colspan="3">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 11pt; COLOR: #000000">Income from legal settlement</font></p>
                        </td>

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

                        <td valign="middle" width="120">&nbsp;</td>

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

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

                        <td valign="middle" width="108">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 11pt; COLOR: #000000">(800</font></p>
                        </td>

                        <td valign="middle" width="12">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 11pt; COLOR: #000000">)</font></p>
                        </td>
                    </tr>

                    <tr>
                        <td valign="top" width="294" colspan="3">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 11pt; COLOR: #000000">Income tax (benefit) expense</font></p>
                        </td>

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

                        <td style="BORDER-BOTTOM: black 0.5pt solid" valign="middle" width="120">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><b><font style="FONT-SIZE: 11pt; COLOR: #000000">(1,942</font></b></p>
                        </td>

                        <td valign="middle" width="12">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><b><font style="FONT-SIZE: 11pt; COLOR: #000000">)</font></b></p>
                        </td>

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

                        <td style="BORDER-BOTTOM: black 0.5pt solid" valign="middle" width="108">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 11pt; COLOR: #000000">1,147</font></p>
                        </td>

                        <td valign="middle" width="12">&nbsp;</td>
                    </tr>

                    <tr bgcolor="#ccffff">
                        <td valign="top" width="294" colspan="3">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 11pt; COLOR: #000000">Net(loss)income</font></p>
                        </td>

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

                        <td style="BORDER-TOP: medium none; BORDER-BOTTOM: black 2pt double" valign="middle" width="120">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><b><font style="FONT-SIZE: 11pt; COLOR: #000000">($2,669</font></b></p>
                        </td>

                        <td valign="middle" width="12">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><b><font style="FONT-SIZE: 11pt; COLOR: #000000">)</font></b></p>
                        </td>

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

                        <td style="BORDER-TOP: medium none; BORDER-BOTTOM: black 2pt double" valign="middle" width="108">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 11pt; COLOR: #000000">$1,571</font></p>
                        </td>

                        <td valign="middle" width="12">&nbsp;</td>
                    </tr>

                    <tr>
                        <td valign="top" width="294" colspan="3">&nbsp;</td>

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

                        <td style="BORDER-TOP: medium none" valign="bottom" width="120">&nbsp;</td>

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

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

                        <td style="BORDER-TOP: medium none" valign="bottom" width="108">&nbsp;</td>

                        <td valign="middle" width="12">&nbsp;</td>
                    </tr>

                    <tr bgcolor="#ccffff">
                        <td valign="top" width="294" colspan="3">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 11pt; COLOR: #000000">(Loss) earnings per share (diluted)</font></p>
                        </td>

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

                        <td valign="bottom" width="120">&nbsp;</td>

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

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

                        <td valign="bottom" width="108">&nbsp;</td>

                        <td valign="middle" width="12">&nbsp;</td>
                    </tr>

                    <tr>
                        <td valign="top" width="294" colspan="3">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.2in; TEXT-INDENT: -13px" align="left"><font style="FONT-SIZE: 11pt; COLOR: #000000">EBITDA</font></p>
                        </td>

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

                        <td style="BORDER-BOTTOM: black 2pt double" valign="bottom" width="120">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><b><font style="FONT-SIZE: 11pt; COLOR: #000000">($.35</font></b></p>
                        </td>

                        <td valign="middle" width="12">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><b><font style="FONT-SIZE: 11pt; COLOR: #000000">)</font></b></p>
                        </td>

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

                        <td style="BORDER-BOTTOM: black 2pt double" valign="bottom" width="108">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 11pt; COLOR: #000000">$.18</font></p>
                        </td>

                        <td valign="middle" width="12">&nbsp;</td>
                    </tr>

                    <tr bgcolor="#ccffff">
                        <td valign="top" width="294" colspan="3">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.2in; TEXT-INDENT: -13px" align="left"><font style="FONT-SIZE: 11pt; COLOR: #000000">Net(loss)income</font></p>
                        </td>

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

                        <td style="BORDER-TOP: medium none; BORDER-BOTTOM: black 2pt double" valign="bottom" width="120">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><b><font style="FONT-SIZE: 11pt; COLOR: #000000">($.22</font></b></p>
                        </td>

                        <td valign="middle" width="12">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><b><font style="FONT-SIZE: 11pt; COLOR: #000000">)</font></b></p>
                        </td>

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

                        <td style="BORDER-TOP: medium none; BORDER-BOTTOM: black 2pt double" valign="bottom" width="108">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 11pt; COLOR: #000000">$.13</font></p>
                        </td>

                        <td valign="middle" width="12">&nbsp;</td>
                    </tr>

                    <tr>
                        <td valign="top" width="294" colspan="3">&nbsp;</td>

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

                        <td style="BORDER-TOP: medium none" valign="bottom" width="120">&nbsp;</td>

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

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

                        <td style="BORDER-TOP: medium none" valign="bottom" width="108">&nbsp;</td>

                        <td valign="middle" width="12">&nbsp;</td>
                    </tr>

                    <tr bgcolor="#ccffff">
                        <td valign="top" width="294" colspan="3">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.2in" align="left"><font style="FONT-SIZE: 11pt; COLOR: #000000">Weighted average shares outstanding</font></p>
                        </td>

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

                        <td style="BORDER-BOTTOM: black 2pt double" valign="bottom" width="120">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><b><font style="FONT-SIZE: 11pt">12,281</font></b></p>
                        </td>

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

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

                        <td style="BORDER-BOTTOM: black 2pt double" valign="bottom" width="108">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="FONT-SIZE: 11pt">12,352</font></p>
                        </td>

                        <td valign="middle" width="12">&nbsp;</td>
                    </tr>

                    <tr>
                        <td valign="top" width="294" colspan="3">&nbsp;</td>

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

                        <td style="BORDER-TOP: medium none" valign="bottom" width="120">&nbsp;</td>

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

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

                        <td style="BORDER-TOP: medium none" valign="middle" width="108">&nbsp;</td>

                        <td valign="middle" width="12">&nbsp;</td>
                    </tr>
                </table>
                <br>
                <br>

                <p></p>

                <p style="MARGIN: 0pt 0.5in 0pt 0.3in; TEXT-INDENT: -9px" align="left"><b><sup><font style="FONT-SIZE: 9pt">(1)</font></sup></b> <b><font style="FONT-SIZE: 9pt">Includes stock based compensation expense of $</font></b><b><font style="FONT-SIZE: 9pt">93,000</font></b> <b><font style="FONT-SIZE: 9pt">and $186,000 for the thirteen weeks ended March 29, 2008 and March 31, 2007, respectively.</font></b></p>

                <p></p>

                <p style="MARGIN: 0pt 0.5in 0pt 0.3in; TEXT-INDENT: -9px" align="left"><b><sup><font style="FONT-SIZE: 9pt; FONT-FAMILY: 'TIMES'">(2)</font></sup></b> <b><font style="FONT-SIZE: 9pt">Includes a $6.1 million bad debt charge on a note receivable for the thirteen weeks ended March 29, 2008.</font></b></p>

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

                <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b>RCM Technologies, Inc.</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>Reconciliation of EBITDA to Net Income and<br>
                Cash (Used In) Provided by Operating Activities (Continued)</b></p>

                <p style="FONT-SIZE: 12pt; MARGIN: 0pt 0in; TEXT-INDENT: 0px" align="center"><b>(Unaudited)</b></p>

                <p></p>

                <p></p>

                <table cellspacing="0" cellpadding="0" width="600" border="0">
                    <tr bgcolor="#ccffff">
                        <td valign="top" width="18">&nbsp;</td>

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

                        <td valign="middle" width="312">&nbsp;</td>

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

                        <td style="BORDER-BOTTOM: black 0.5pt solid" valign="middle" width="246" colspan="4">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b><font style="COLOR: #000000">Thirteen Weeks Ended</font></b></p>
                        </td>

                        <td valign="middle" width="12">&nbsp;</td>
                    </tr>

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

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

                        <td valign="middle" width="312">&nbsp;</td>

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

                        <td style="BORDER-BOTTOM: black 0.5pt solid" valign="middle" width="114">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b><font style="COLOR: #000000">March</font></b><b><font style="COLOR: #000000">29</font></b><b><font style="COLOR: #000000">, 200</font></b><b><font style="COLOR: #000000">8</font></b></p>
                        </td>

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

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

                        <td style="BORDER-BOTTOM: black 0.5pt solid" valign="middle" width="108">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="COLOR: #000000">March 31, 2007</font></p>
                        </td>

                        <td valign="middle" width="12">&nbsp;</td>
                    </tr>

                    <tr bgcolor="#ccffff">
                        <td valign="middle" width="348" colspan="3">&nbsp;</td>

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

                        <td style="BORDER-BOTTOM: black 0.5pt solid" valign="middle" width="246" colspan="4">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 8pt">(In Thousands)</font></p>
                        </td>

                        <td valign="middle" width="12">&nbsp;</td>
                    </tr>

                    <tr>
                        <td valign="top" width="348" colspan="3">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="COLOR: #000000">Net(loss)income</font></p>
                        </td>

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

                        <td style="BORDER-TOP: medium none" valign="middle" width="114">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="COLOR: #000000">($2,669</font></p>
                        </td>

                        <td style="BORDER-TOP: medium none" valign="middle" width="12">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="COLOR: #000000">)</font></p>
                        </td>

                        <td style="BORDER-TOP: medium none" valign="middle" width="12">&nbsp;</td>

                        <td style="BORDER-TOP: medium none" valign="middle" width="108">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="COLOR: #000000">$1,571</font></p>
                        </td>

                        <td valign="middle" width="12">&nbsp;</td>
                    </tr>

                    <tr bgcolor="#ccffff">
                        <td valign="top" width="348" colspan="3">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="COLOR: #000000">Adjustments to reconcile net income to cash<br>
                            (used in) provided by operating activities:</font></p>
                        </td>

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

                        <td valign="middle" width="114">&nbsp;</td>

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

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

                        <td valign="middle" width="108">&nbsp;</td>

                        <td valign="middle" width="12">&nbsp;</td>
                    </tr>

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

                        <td valign="top" width="330" colspan="2">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="COLOR: #000000">Depreciation and amortization</font></p>
                        </td>

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

                        <td valign="middle" width="114">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="COLOR: #000000">361</font></p>
                        </td>

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

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

                        <td valign="middle" width="108">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="COLOR: #000000">354</font></p>
                        </td>

                        <td valign="middle" width="12">&nbsp;</td>
                    </tr>

                    <tr bgcolor="#ccffff">
                        <td valign="top" width="18">&nbsp;</td>

                        <td valign="top" width="330" colspan="2">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="COLOR: #000000">Provision for allowanceon</font> <font style="COLOR: #000000">accounts receivable</font></p>
                        </td>

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

                        <td valign="bottom" width="114">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="COLOR: #000000">(97</font></p>
                        </td>

                        <td valign="bottom" width="12">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="COLOR: #000000">)</font></p>
                        </td>

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

                        <td valign="bottom" width="108">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="COLOR: #000000">13</font></p>
                        </td>

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

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

                        <td valign="top" width="330" colspan="2">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="COLOR: #000000">Provision for allowance on note receivable</font></p>
                        </td>

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

                        <td valign="middle" width="114">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="COLOR: #000000">6,090</font></p>
                        </td>

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

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

                        <td valign="middle" width="108">&nbsp;</td>

                        <td valign="middle" width="12">&nbsp;</td>
                    </tr>

                    <tr bgcolor="#ccffff">
                        <td valign="top" width="18">&nbsp;</td>

                        <td valign="top" width="330" colspan="2">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="COLOR: #000000">Stock based compensation expense</font></p>
                        </td>

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

                        <td valign="middle" width="114">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="COLOR: #000000">93</font></p>
                        </td>

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

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

                        <td valign="middle" width="108">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="COLOR: #000000">186</font></p>
                        </td>

                        <td valign="middle" width="12">&nbsp;</td>
                    </tr>

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

                        <td valign="top" width="330" colspan="2">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="COLOR: #000000">Deferred tax assets</font></p>
                        </td>

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

                        <td valign="middle" width="114">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="COLOR: #000000">(2,188</font></p>
                        </td>

                        <td valign="middle" width="12">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="COLOR: #000000">)</font></p>
                        </td>

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

                        <td valign="middle" width="108">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="COLOR: #000000">835</font></p>
                        </td>

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

                    <tr bgcolor="#ccffff">
                        <td valign="top" width="348" colspan="3">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="COLOR: #000000">Changes in operating assets and liabilities</font></p>
                        </td>

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

                        <td valign="middle" width="114">&nbsp;</td>

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

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

                        <td valign="middle" width="108">&nbsp;</td>

                        <td valign="middle" width="12">&nbsp;</td>
                    </tr>

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

                        <td valign="top" width="330" colspan="2">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="COLOR: #000000">Accounts</font> <font style="COLOR: #000000">and note</font> <font style="COLOR: #000000">receivable</font></p>
                        </td>

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

                        <td valign="middle" width="114">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="COLOR: #000000">(4,313</font></p>
                        </td>

                        <td valign="middle" width="12">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="COLOR: #000000">)</font></p>
                        </td>

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

                        <td valign="middle" width="108">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="COLOR: #000000">(1,117</font></p>
                        </td>

                        <td valign="middle" width="12">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="COLOR: #000000">)</font></p>
                        </td>
                    </tr>

                    <tr bgcolor="#ccffff">
                        <td valign="top" width="18">&nbsp;</td>

                        <td valign="top" width="330" colspan="2">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="COLOR: #000000">Prepaid expenses and other current assets</font></p>
                        </td>

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

                        <td valign="middle" width="114">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="COLOR: #000000">5</font></p>
                        </td>

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

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

                        <td valign="middle" width="108">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="COLOR: #000000">(303</font></p>
                        </td>

                        <td valign="middle" width="12">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="COLOR: #000000">)</font></p>
                        </td>
                    </tr>

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

                        <td valign="top" width="330" colspan="2">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="COLOR: #000000">Accounts payable and accrued expenses</font></p>
                        </td>

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

                        <td valign="middle" width="114">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="COLOR: #000000">(1,452</font></p>
                        </td>

                        <td valign="middle" width="12">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="COLOR: #000000">)</font></p>
                        </td>

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

                        <td valign="middle" width="108">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="COLOR: #000000">332</font></p>
                        </td>

                        <td valign="middle" width="12">&nbsp;</td>
                    </tr>

                    <tr bgcolor="#ccffff">
                        <td valign="top" width="18">&nbsp;</td>

                        <td valign="top" width="330" colspan="2">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="COLOR: #000000">Accrued compensation</font></p>
                        </td>

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

                        <td valign="middle" width="114">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="COLOR: #000000">(1,294</font></p>
                        </td>

                        <td valign="middle" width="12">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="COLOR: #000000">)</font></p>
                        </td>

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

                        <td valign="middle" width="108">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="COLOR: #000000">(1,886</font></p>
                        </td>

                        <td valign="middle" width="12">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="COLOR: #000000">)</font></p>
                        </td>
                    </tr>

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

                        <td valign="top" width="330" colspan="2">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="COLOR: #000000">Payroll and withheld taxes</font></p>
                        </td>

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

                        <td valign="middle" width="114">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="COLOR: #000000">125</font></p>
                        </td>

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

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

                        <td valign="middle" width="108">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="COLOR: #000000">146</font></p>
                        </td>

                        <td valign="middle" width="12">&nbsp;</td>
                    </tr>

                    <tr bgcolor="#ccffff">
                        <td valign="top" width="18">&nbsp;</td>

                        <td valign="top" width="330" colspan="2">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="COLOR: #000000">Income taxes payable</font></p>
                        </td>

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

                        <td style="BORDER-BOTTOM: black 0.5pt solid" valign="middle" width="114">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="COLOR: #000000">(1,120</font></p>
                        </td>

                        <td valign="middle" width="12">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="COLOR: #000000">)</font></p>
                        </td>

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

                        <td style="BORDER-BOTTOM: black 0.5pt solid" valign="middle" width="108">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="COLOR: #000000">120</font></p>
                        </td>

                        <td valign="middle" width="12">&nbsp;</td>
                    </tr>

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

                        <td valign="top" width="330" colspan="2">&nbsp;</td>

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

                        <td style="BORDER-TOP: medium none" valign="middle" width="114">&nbsp;</td>

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

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

                        <td style="BORDER-TOP: medium none" valign="middle" width="108">&nbsp;</td>

                        <td valign="middle" width="12">&nbsp;</td>
                    </tr>

                    <tr bgcolor="#ccffff">
                        <td valign="top" width="348" colspan="3">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="COLOR: #000000">Cash (used in) provided by operating activities</font></p>
                        </td>

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

                        <td style="BORDER-BOTTOM: black 2pt double" valign="middle" width="114">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="COLOR: #000000">($6,459</font></p>
                        </td>

                        <td valign="middle" width="12">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="COLOR: #000000">)</font></p>
                        </td>

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

                        <td style="BORDER-BOTTOM: black 2pt double" valign="middle" width="108">
                            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><font style="COLOR: #000000">$251</font></p>
                        </td>

                        <td valign="middle" width="12">&nbsp;</td>
                    </tr>
                </table>
                <br>
                <br>

                <p></p>

                <p style="MARGIN: 0pt 0.5in" align="center"><b><font style="FONT-SIZE: 11pt">####</font></b></p>
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