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<SEC-DOCUMENT>0000912282-08-001155.txt : 20080728
<SEC-HEADER>0000912282-08-001155.hdr.sgml : 20080728
<ACCEPTANCE-DATETIME>20080728161354
ACCESSION NUMBER:		0000912282-08-001155
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20080728
ITEM INFORMATION:		Results of Operations and Financial Condition
FILED AS OF DATE:		20080728
DATE AS OF CHANGE:		20080728

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			DATA I/O CORP
		CENTRAL INDEX KEY:			0000351998
		STANDARD INDUSTRIAL CLASSIFICATION:	INSTRUMENTS FOR MEAS & TESTING OF ELECTRICITY & ELEC SIGNALS [3825]
		IRS NUMBER:				910864123
		STATE OF INCORPORATION:			WA
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-10394
		FILM NUMBER:		08973168

	BUSINESS ADDRESS:	
		STREET 1:		6464 185TH AVE NE, SUITE 101
		CITY:			REDMOND
		STATE:			WA
		ZIP:			98052
		BUSINESS PHONE:		4258676922

	MAIL ADDRESS:	
		STREET 1:		6464 185TH AVE NE, SUITE 101
		CITY:			REDMOND
		STATE:			WA
		ZIP:			98052
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>dataio_8k-07282008.htm
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<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font SIZE=2>SECURITIES AND EXCHANGE COMMISSION</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font SIZE=2>WASHINGTON, D.C. 20549</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>________________________</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>FORM 8 - K</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font SIZE=2>CURRENT REPORT</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>Date of Report (Date of earliest event reported): </font><b><font size=2>July 24, 2008</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=4>Data I/O Corporation</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>(Exact name of registrant as specified in its charter)</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><b><font size=2>Washington</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>(State of other jurisdiction of incorporation)</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>


<table width="100%" border="0" cellspacing=0 cellpadding=0 style='border-collapse:collapse'>
    <tr >
        <td width="50%" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>0-10394</font></b></p> </td>
        <td width="50%" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><b><font size=2>91-0864123</font></b></p> </td> </tr>
    <tr >
        <td width="50%" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>(Commission File Number)</font></p> </td>
        <td width="50%" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>(IRS Employer Identification No.)</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'>&nbsp;</p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'>&nbsp;</p>


<table width="100%" border="0" cellspacing=0 cellpadding=0 style='border-collapse:collapse'>
    <tr >
        <td width="50%" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2><b>6464 185<sup>th</sup> Ave. N.E., Redmond, WA</b></font></p> </td>
        <td width="50%" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2><b>98052</b></font></p> </td> </tr>
    <tr >
        <td width="50%" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>(Address of principal executive offices)</font></p> </td>
        <td width="50%" valign=top style='padding:0in 5.4pt 0in 5.4pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>(Zip Code)</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'>&nbsp;</p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'>&nbsp;</p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>Registrant&#146;s telephone number, including area code:  <b>(425) 881-6444</b></font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'>&nbsp;</p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2><b>Not Applicable</b></font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>(Former name or former address, if changed since last report)</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'>&nbsp;</p>



<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>





<HR SIZE=2 COLOR=black NOSHADE>



<p style='page-break-before:always'></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2><b>Item 2.02 Results of Operation and Financial Condition</b></font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:justify;'><font size=2>A copy of a press release made on July 24, 2008 follows:</font></p>

<p style=' margin-bottom:0pt; margin-top:12pt;text-align:justify;'>&nbsp;</p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><img src="cryimg1.jpg"><br> </p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>6464 185<SUP>TH</SUP> Ave. N.E., Suite 101</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Redmond, WA 98052 </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Tel: (425) 881-6444 </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Fax:(425) 881-6856</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><i><font size=2>For information please contact:</font></i></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Joel Hatlen</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Vice President and Chief Financial Officer</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Data I/O Corporation</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>(425) 881-6444</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><B><font SIZE=2>DATA I/O ANNOUNCES SECOND QUARTER RESULTS</font></B></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:center;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><b><font size=2>Redmond, Wash., July 24, 2008 </font></b><font size=2>&#150; Data I/O Corporation (NASDAQ: DAIO), the leading provider of manual and automated device programming systems, today announced financial results for the second quarter of 2008.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Revenues for the second quarter of 2008 were $8.0 million compared with $5.8 million in the second quarter of 2007 an increase of 39%.  Compared to the first quarter of 2008, revenues for the second quarter of 2008 were up 30%.  In accordance with U.S. generally accepted accounting principles (GAAP), net income for the second quarter of 2008 was $1.2 million, or $0.13 per diluted share, compared with a net loss of ($1.1) million, or ($0.13) per share for the second quarter of 2007. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Orders were $8.8 million, the highest level in 8 years. We experienced strong sales in our automated systems, especially from the Pro-Line RoadRunner product line and in the wireless segment.  Operating expenses for the second quarter of 2008 were $3.5 million, including accrued bonuses of $300,000, compared with $3.9 million and no bonus accruals, in the second quarter of 2007. Gross margin was up $1.7 million due primarily to higher sales volume, restructure savings and product mix offset in part by unfavorable factory variances. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1.07%;text-align:left;'><font size=2> &#147;We are particularly delighted with the sales performance during the second quarter,&#148; said Fred Hume, president and CEO. &#147;This increased our backlog at the end of the second quarter to $2.5 million up from $1.5 million at the end of the first quarter, and positions us well going into the third quarter.&#148;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


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<p style='page-break-before:always'></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:1.07%;text-align:left;'><font size=2> &#147;We are extremely pleased to have introduced and delivered to a major automotive customer the Pro-Line RoadRunner XLF,  an all new version of our RoadRunner family of on-line just-in-time programming systems,&#148; said Hume. This version is targeted at users of larger package size flash based microcontroller devices particularly in the automotive segment. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><b><font size=2>Conference Call Information</font></b></p>

<p style=' margin-bottom:6pt; margin-top:0pt;text-align:left;'><font size=2>A conference call discussing the second quarter of 2008 financial results will follow this release today at 2:00 p.m. Pacific time/5:00 p.m. Eastern time. To listen to the conference call, please dial (612) 288-0340 passcode: DAIO. A taped replay will be made available approximately one hour after the conclusion of the call and will remain available for one week. To access the replay, please dial (320) 365-3844, access code:  953414. The conference call will also be simultaneously webcast over the Internet; visit the News and Events section of the Data I/O Corporation website at http://www.dataio.com  to access the call from the site. This webcast will be recorded and available for replay on the Data I/O Corporation website approximately two hours after the conclusion of the conference call.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;line-height: 150%;'><b><font size=2>About Data I/O Corporation</font></b></p>

<p style=' margin-bottom:6pt; margin-top:0pt;text-align:left;'><font size=2>With over 35 years of expertise in delivering intellectual property to programmable devices, Data&nbsp;I/O offers complete, integrated manufacturing solutions in wireless, automotive, programming center, semiconductor, and industrial control market segments for OEM, ODM, EMS and semiconductor companies. Data&nbsp;I/O provides hardware and software solutions for turn-key programming and device testing services, as well as in-system (on-board), in-line (right before use at the SMT line), or in-socket (off-line) programming. These solutions are scalable for small, medium and large volume applications with different device mixes. Data I/O Corporation has headquarters in Redmond, Wash., with sales and services worldwide. For further information, visit the company&#146;s website at http://www.dataio.com.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><b><font size=2>Forward Looking Statement</font></b></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>Statements in this news release concerning future results from operations, financial position, economic conditions, product releases and any other statement that may be construed as a prediction of future performance or events are forward-looking statements which involve known and unknown risks, uncertainties and other factors which may cause actual results to differ materially from those expressed or implied by such statements. These factors include uncertainties as to levels of orders, ability to record revenues, market acceptance of new products, changes in economic conditions and market demand, pricing and other activities by competitors, and other risks including those described from time to time in the Company&#146;s filings on Forms 10K and 10Q with the Securities and Exchange Commission (SEC), press releases and other communications. </font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<p style=' margin-bottom:0pt; margin-top:0pt; margin-left:3.33%;text-align:center;'><font size=2>&#150; Summary Financial Data Attached &#150;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

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<p style='page-break-before:always'></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>



<table border="0" cellspacing=0 cellpadding=0 width="97%" style='border-collapse:collapse'>
    <tr style='height:.25in'>
        <td  nowrap colspan="8" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;height:.25in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><B><font SIZE=2>DATA I/O CORPORATION</font></B></p> </td> </tr>
    <tr style='height:.25in'>
        <td  nowrap colspan="8" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt ;height:.25in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><B><font SIZE=2>COMPARATIVE STATEMENTS OF EARNINGS</font></B></p> </td> </tr>
    <tr style='height:13.9pt'>
        <td  nowrap colspan="8" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt ;height:13.9pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>(in thousands except per share data)</font></p> </td> </tr>
    <tr style='height:13.9pt'>
        <td width="31%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:13.9pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="11%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:13.9pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="11%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:13.9pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="10%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:13.9pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="3%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:13.9pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="11%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:13.9pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="10%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:13.9pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="10%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:13.9pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:15.95pt'>
        <td width="31%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  nowrap colspan="3" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;height:15.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>Second Quarter</font></p> </td>
        <td width="3%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  nowrap colspan="3" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;height:15.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:center;margin-top:0pt;margin-bottom:0pt'><font size=2>Six Months Ended</font></p> </td> </tr>
    <tr style='height:13.9pt'>
        <td width="31%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:13.9pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="11%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:13.9pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="11%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:13.9pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="10%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:13.9pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>Percent</font></p> </td>
        <td width="3%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:13.9pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="11%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:13.9pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="10%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:13.9pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="10%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:13.9pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>Percent</font></p> </td> </tr>
    <tr style='height:13.9pt'>
        <td width="31%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:13.9pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="11%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:13.9pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>6/30/2008   </font></p> </td>
        <td width="11%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:13.9pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>6/30/2007   </font></p> </td>
        <td width="10%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:13.9pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>Change</font></p> </td>
        <td width="3%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:13.9pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="11%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:13.9pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>6/30/2008   </font></p> </td>
        <td width="10%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:13.9pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>6/30/2007   </font></p> </td>
        <td width="10%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:13.9pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>Change</font></p> </td> </tr>
    <tr style='height:.25in'>
        <td width="31%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:.25in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Net sales</font></p> </td>
        <td width="11%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:.25in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$8,023 </font></p> </td>
        <td width="11%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:.25in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$5,778</font></p> </td>
        <td width="10%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:.25in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>38.9%</font></p> </td>
        <td width="3%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:.25in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="11%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:.25in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$14,211</font></p> </td>
        <td width="10%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:.25in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$11,806</font></p> </td>
        <td width="10%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:.25in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>20.4%</font></p> </td> </tr>
    <tr style='height:.25in'>
        <td width="31%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:.25in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Gross margin</font></p> </td>
        <td width="11%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:.25in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>4,558 </font></p> </td>
        <td width="11%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:.25in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>2,838</font></p> </td>
        <td width="10%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:.25in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>60.6%</font></p> </td>
        <td width="3%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:.25in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="11%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:.25in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>8,320</font></p> </td>
        <td width="10%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:.25in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>6,158</font></p> </td>
        <td width="10%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:.25in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>35.1%</font></p> </td> </tr>
    <tr style='height:.25in'>
        <td width="31%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:.25in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Gross margin as percent of sales</font></p> </td>
        <td width="11%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:.25in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>56.8%</font></p> </td>
        <td width="11%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:.25in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>49.1%</font></p> </td>
        <td width="10%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:.25in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>7.7%</font></p> </td>
        <td width="3%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:.25in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="11%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:.25in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>58.5%</font></p> </td>
        <td width="10%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:.25in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>52.2%</font></p> </td>
        <td width="10%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:.25in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>6.4%</font></p> </td> </tr>
    <tr style='height:.25in'>
        <td width="31%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:.25in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Operating expenses:</font></p> </td>
        <td width="11%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:.25in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="11%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:.25in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="10%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:.25in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="3%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:.25in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="11%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:.25in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="10%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:.25in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="10%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:.25in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:.25in'>
        <td width="31%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:.25in'>
            <p style='margin-left:0pt;text-indent:5.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Research &amp; development</font></p> </td>
        <td width="11%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:.25in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>1,166 </font></p> </td>
        <td width="11%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:.25in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>1,286</font></p> </td>
        <td width="10%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:.25in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>-9.3%</font></p> </td>
        <td width="3%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:.25in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="11%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:.25in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>2,265</font></p> </td>
        <td width="10%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:.25in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>2,657</font></p> </td>
        <td width="10%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:.25in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>-14.8%</font></p> </td> </tr>
    <tr style='height:.25in'>
        <td width="31%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:.25in'>
            <p style='margin-left:0pt;text-indent:4.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Selling, general and administrative</font></p> </td>
        <td width="11%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:.25in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>2,287 </font></p> </td>
        <td width="11%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:.25in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>2,027</font></p> </td>
        <td width="10%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:.25in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>12.8%</font></p> </td>
        <td width="3%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:.25in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="11%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:.25in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>4,315</font></p> </td>
        <td width="10%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:.25in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>4,565</font></p> </td>
        <td width="10%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:.25in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>-5.5%</font></p> </td> </tr>
    <tr style='height:.25in'>
        <td width="31%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:.25in'>
            <p style='margin-left:0pt;text-indent:6.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Provision for business restructure</font></p> </td>
        <td width="11%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:.25in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(2)</font></p> </td>
        <td width="11%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:.25in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>632</font></p> </td>
        <td width="10%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:.25in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="3%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:.25in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="11%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:.25in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>7</font></p> </td>
        <td width="10%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:.25in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>832</font></p> </td>
        <td width="10%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:.25in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:.25in'>
        <td width="31%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:.25in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Operating income (loss)</font></p> </td>
        <td width="11%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:.25in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>1,107</font></p> </td>
        <td width="11%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:.25in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(1,107)</font></p> </td>
        <td width="10%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:.25in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="3%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:.25in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="11%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:.25in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>1,733</font></p> </td>
        <td width="10%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:.25in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(1,896)</font></p> </td>
        <td width="10%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:.25in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:.25in'>
        <td width="31%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:.25in'>
            <p style='margin-left:0pt;text-indent:7.5pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Non-operating income (expense)</font></p> </td>
        <td width="11%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:.25in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>115</font></p> </td>
        <td width="11%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:.25in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>31</font></p> </td>
        <td width="10%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:.25in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="3%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:.25in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="11%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:.25in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>2,163</font></p> </td>
        <td width="10%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:.25in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>41</font></p> </td>
        <td width="10%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:.25in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:.25in'>
        <td width="31%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:.25in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Income(loss) from operations before taxes</font></p> </td>
        <td width="11%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:.25in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>1,222</font></p> </td>
        <td width="11%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:.25in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(1,076) </font></p> </td>
        <td width="10%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:.25in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="3%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:.25in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="11%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:.25in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>3,896</font></p> </td>
        <td width="10%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:.25in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>(1,855)</font></p> </td>
        <td width="10%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:.25in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:13.35pt'>
        <td width="31%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:13.35pt'>
            <p style='margin-left:0pt;text-indent:9.75pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Income tax expense (benefit)</font></p> </td>
        <td width="11%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:13.35pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>19</font></p> </td>
        <td width="11%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:13.35pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>3</font></p> </td>
        <td width="10%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:13.35pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="3%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:13.35pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="11%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:13.35pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>52</font></p> </td>
        <td width="10%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:13.35pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>9</font></p> </td>
        <td width="10%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:13.35pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:1.9pt'>
        <td width="31%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:1.9pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="11%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:1.9pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="11%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:1.9pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="10%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:1.9pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="3%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:1.9pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="11%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:1.9pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="10%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:1.9pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="10%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:1.9pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:.25in'>
        <td width="31%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:.25in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Net income (loss)</font></p> </td>
        <td width="11%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:.25in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$1,203</font></p> </td>
        <td width="11%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:.25in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>($1,079) </font></p> </td>
        <td width="10%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:.25in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="3%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:.25in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="11%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:.25in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$3,844           </font></p> </td>
        <td width="10%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:.25in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>($1,864)</font></p> </td>
        <td width="10%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:.25in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:1.5pt'>
        <td width="31%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:1.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="11%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:1.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="11%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:1.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="10%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:1.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="3%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:1.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="11%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:1.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="10%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:1.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="10%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:1.5pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:18.75pt'>
        <td width="31%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:18.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Total diluted earnings (loss) per share</font></p> </td>
        <td width="11%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:18.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$0.13</font></p> </td>
        <td width="11%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:18.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>($0.13) </font></p> </td>
        <td width="10%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:18.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="3%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:18.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="11%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:18.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$0.42</font></p> </td>
        <td width="10%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:18.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>($0.22)</font></p> </td>
        <td width="10%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:18.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:13.9pt'>
        <td width="31%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:13.9pt'>
            <p style='margin-left:0pt;text-indent:2.25pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="11%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:13.9pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="11%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:13.9pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="10%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:13.9pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="3%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:13.9pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="11%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:13.9pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="10%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:13.9pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="10%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:13.9pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:18.75pt'>
        <td width="31%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:18.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Diluted weighted average shares outstanding</font></p> </td>
        <td width="11%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:18.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>9,091 </font></p> </td>
        <td width="11%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:18.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>8,562</font></p> </td>
        <td width="10%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:18.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="3%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:18.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="11%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:18.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>9,062</font></p> </td>
        <td width="10%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:18.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>8,527</font></p> </td>
        <td width="10%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt ; height:18.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


<!-- MARKER FORMAT-SHEET="Para Default" FSL="Default" -->
<P align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4 </FONT></P>
<BR>


<HR SIZE=2 COLOR=black NOSHADE>

<p style='page-break-before:always'></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>





<!-- MARKER FORMAT-SHEET="Para Default" FSL="Default" -->
<P align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>CONDENSED BALANCE SHEET</B><BR>
(in
thousands)&nbsp;&nbsp;&nbsp;&nbsp; </FONT></P>
<BR>



<table align=center border="0" cellspacing=0 cellpadding=0 width="72%" style='border-collapse:collapse'>
    <tr style='height:15.95pt'>
        <td width="45%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2></font></p>
<p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="13%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="14%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="11%" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:15.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="14%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:15.95pt'>
        <td width="45%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="13%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="14%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>6/30/2008   </font></p> </td>
        <td width="11%" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:15.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="14%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>12/31/2007   </font></p> </td> </tr>
    <tr style='height:15.95pt'>
        <td width="45%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="13%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="14%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="11%" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:15.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="14%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:15.95pt'>
        <td width="45%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Cash and cash equivalents</font></p> </td>
        <td width="13%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="14%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$10,764 </font></p> </td>
        <td width="11%" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:15.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="14%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$7,637</font></p> </td> </tr>
    <tr style='height:18.75pt'>
        <td width="45%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:18.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Accounts receivable, net</font></p> </td>
        <td width="13%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:18.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="14%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:18.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>6,938 </font></p> </td>
        <td width="11%" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:18.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="14%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:18.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>5,299</font></p> </td> </tr>
    <tr style='height:18.75pt'>
        <td width="45%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:18.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Inventories</font></p> </td>
        <td width="13%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:18.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="14%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:18.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>5,061 </font></p> </td>
        <td width="11%" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:18.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="14%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:18.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>4,980</font></p> </td> </tr>
    <tr style='height:15.95pt'>
        <td width="45%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Other current assets</font></p> </td>
        <td width="13%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="14%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>255 </font></p> </td>
        <td width="11%" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:15.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="14%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>323</font></p> </td> </tr>
    <tr style='height:18.75pt'>
        <td width="45%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:18.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Land, building and equipment</font></p> </td>
        <td width="13%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:18.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="14%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:18.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>2,240 </font></p> </td>
        <td width="11%" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:18.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="14%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:18.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>2,257</font></p> </td> </tr>
    <tr style='height:15.75pt'>
        <td width="45%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=2>Other long-term assets</font></p> </td>
        <td width="13%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="14%" nowrap valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:15.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>122 </font></p> </td>
        <td width="11%" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:15.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="14%" nowrap valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:15.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>124</font></p> </td> </tr>
    <tr style='height:.25in'>
        <td width="45%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:.25in'>
            <p style='margin-left:0pt;text-indent:19.5pt;text-align:left;margin-top:1.5pt;margin-bottom:0pt'><font size=2>Total assets</font></p> </td>
        <td width="13%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:.25in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:1.5pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="14%" nowrap valign=bottom style=' border-bottom:double black 2.25pt;padding:0in 5.4pt 0in 5.4pt;height:.25in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$25,380 </font></p> </td>
        <td width="11%" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:.25in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:1.5pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="14%" nowrap valign=bottom style=' border-bottom:double black 2.25pt;padding:0in 5.4pt 0in 5.4pt;height:.25in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$20,620</font></p> </td> </tr>
    <tr style='height:12.95pt'>
        <td width="45%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="13%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="14%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="11%" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="14%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:12.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:6.6pt'>
        <td width="45%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:6.6pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="13%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:6.6pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="14%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:6.6pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="11%" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:6.6pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="14%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:6.6pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:15.95pt'>
        <td width="45%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Current liabilities</font></p> </td>
        <td width="13%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="14%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$5,665 </font></p> </td>
        <td width="11%" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:15.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="14%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$5,177</font></p> </td> </tr>
    <tr style='height:15.95pt'>
        <td width="45%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=2>Long term debt</font></p> </td>
        <td width="13%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="14%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>302</font></p> </td>
        <td width="11%" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:15.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="14%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.95pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>357</font></p> </td> </tr>
    <tr style='height:15.0pt'>
        <td width="45%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:1.0pt;margin-bottom:0pt'><font size=2>Shareholders&#146; equity</font></p> </td>
        <td width="13%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="14%" nowrap valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:15.0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>19,413 </font></p> </td>
        <td width="11%" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:15.0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:1.0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="14%" nowrap valign=bottom style=' border-bottom:solid black 1.0pt; padding:0in 5.4pt 0in 5.4pt;height:15.0pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>15,086</font></p> </td> </tr>
    <tr style='height:.25in'>
        <td  nowrap colspan="2" valign=bottom style=' padding:0in 5.4pt 0in 5.4pt;height:.25in'>
            <p style='margin-left:0pt;text-indent:19.5pt;text-align:left;margin-top:1.5pt;margin-bottom:0pt'><font size=2>Total liabilities and shareholders&#146; equity          </font></p> </td>
        <td width="14%" nowrap valign=bottom style=' border-bottom:double black 2.25pt;padding:0in 5.4pt 0in 5.4pt;height:.25in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$25,380 </font></p> </td>
        <td width="11%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:.25in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:1.5pt;margin-bottom:0pt'><font size=2></font></p> </td>
        <td width="14%" valign=bottom style='border-bottom:double black 2.25pt; padding:0in 5.4pt 0in 5.4pt;height:.25in'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:right;margin-top:0pt;margin-bottom:0pt'><font size=2>$20,620</font></p> </td> </tr>
    <tr style='height:15.75pt'>
        <td width="45%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="13%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="14%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="11%" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:15.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="14%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr>
    <tr style='height:15.75pt'>
        <td width="45%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="13%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="14%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="11%" valign=top style='padding:0in 5.4pt 0in 5.4pt; height:15.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="14%" nowrap valign=bottom style='padding:0in 5.4pt 0in 5.4pt; height:15.75pt'>
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>



<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

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<HR SIZE=2 COLOR=black NOSHADE>

<p style='page-break-before:always'></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'>
</p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'>&nbsp;</p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2><B>SIGNATURES</B></font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'>&nbsp;</p>

<p style=' margin-bottom:0pt; margin-top:0pt; text-indent:6.67%;text-align:justify;'><font size=2>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.</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'>&nbsp;</p>


<table border="0" cellspacing=0 cellpadding=0 width="48%" style='border-collapse:collapse'>
    <tr >
        <td width="55%" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="44%" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><FONT SIZE="2"><B>Data I/O Corporation</B></font></p> </td> </tr></table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'>&nbsp;</p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'>&nbsp;</p>


<table border="0" cellspacing=0 cellpadding=0 width="57%" style='border-collapse:collapse'>
    <tr >
        <td width="46%" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>July 28, 2008</font></p> </td>
        <td  nowrap colspan="4" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>By &nbsp;<u>/s/Frederick R. Hume</u></font></p> </td> </tr>
    <tr >
        <td width="46%" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  nowrap colspan="2" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Frederick R. Hume</font></p> </td>
        <td   colspan="2">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td width="46%" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="19%" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>President</font></p> </td>
        <td   colspan="3">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td width="46%" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  nowrap colspan="3" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Chief Executive Officer</font></p> </td>
        <td  width="11%">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr>
        <td width="199" ></td>

        <td width="82" ></td>

        <td width="65" ></td>

        <td width="33" ></td>

        <td width="48" ></td> </tr> </table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'>&nbsp;</p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'>&nbsp;</p>



<table border="0" cellspacing=0 cellpadding=0 width="51%" style='border-collapse:collapse'>
    <tr >
        <td width="46%" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>July 28, 2008</font></p> </td>
        <td  nowrap colspan="4" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>By &nbsp;<u>/s/ Joel S. Hatlen</u></font></p> </td> </tr>
    <tr >
        <td width="51%" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td width="29%" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Joel S. Hatlen</font></p> </td>
        <td   colspan="3">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td width="51%" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  nowrap colspan="4" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Vice President - Finance</font></p> </td> </tr>
    <tr >
        <td width="51%" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  nowrap colspan="2" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Chief Financial Officer</font></p> </td>
        <td   colspan="2">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr >
        <td width="51%" nowrap valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></p> </td>
        <td  nowrap colspan="3" valign=top >
            <p style='margin-left:0pt;text-indent:0pt;text-align:justify;margin-top:0pt;margin-bottom:0pt'><font size=2>Secretary and Treasurer</font></p> </td>
        <td  width="1%">
            <p style='margin-left:0pt;text-indent:0pt;text-align:left;margin-top:0pt;margin-bottom:0pt'><font size=1>&nbsp;</font></td> </tr>
    <tr>
        <td width="199" ></td>

        <td width="112" ></td>

        <td width="62" ></td>

        <td width="4" ></td>

        <td width="6" ></td> </tr> </table>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:justify;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>

<p style=' margin-bottom:0pt; margin-top:0pt;text-align:left;'><font size=2>&nbsp;</font></p>


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