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Proc-Type: 2001,MIC-CLEAR
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<SEC-DOCUMENT>0001144204-08-014239.txt : 20080310
<SEC-HEADER>0001144204-08-014239.hdr.sgml : 20080310
<ACCEPTANCE-DATETIME>20080310123606
ACCESSION NUMBER:		0001144204-08-014239
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		3
CONFORMED PERIOD OF REPORT:	20080306
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20080310
DATE AS OF CHANGE:		20080310

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			ENERGY FOCUS, INC/DE
		CENTRAL INDEX KEY:			0000924168
		STANDARD INDUSTRIAL CLASSIFICATION:	ELECTRIC LIGHTING & WIRING EQUIPMENT [3640]
		IRS NUMBER:				943021850
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-24230
		FILM NUMBER:		08676840

	BUSINESS ADDRESS:	
		STREET 1:		32000 AURORA ROAD
		CITY:			SOLON
		STATE:			OH
		ZIP:			44139
		BUSINESS PHONE:		5104900719

	MAIL ADDRESS:	
		STREET 1:		32000 AURORA ROAD
		CITY:			SOLON
		STATE:			OH
		ZIP:			44139

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	FIBERSTARS INC /CA/
		DATE OF NAME CHANGE:	19940527
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<TYPE>8-K
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      Soliciting material pursuant to Rule&#160;14a-12 under the Exchange Act (17 CFR
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      Pre-commencement communications pursuant to Rule&#160;14d-2(b) under the
      Exchange Act (17 CFR 240.14d-2(b))</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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      Pre-commencement communications pursuant to Rule&#160;13e-4(c) under the
      Exchange Act (17 CFR 240-13e-4(c))</font></div><br>
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      2.02. Results of Operations and Financial Condition.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
      March
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      results for the quarter and the year ended December 31, 2007, and hosted an
      investor conference call to discuss those results.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">A
      copy of
      the press release is furnished with this Report as Exhibit 99.1 and is
      incorporated in this Report by reference. A copy of the written transcript
      of
      the investor conference call is furnished with this Report as Exhibit 99.2
      and
      is incorporated in this Report by reference.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      information in this Report is being furnished and shall not be deemed &#8220;filed&#8221;
for the purposes of Section 18 of the Securities Exchange Act of 1934, or
      otherwise subject to the liabilities of that Section. The information in this
      Report shall not be incorporated by reference into any registration statement
      or
      other document filed pursuant to the Securities Act of 1933.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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      9.01. Financial Statements and Exhibits.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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      Exhibits. The following Exhibits are furnished with this Report.</font></div>
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          <tr>
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                Release dated March 6, 2008 announcing financial results for the
                quarter
                and the year ended December 31, 2007.</font></div>
            </td>
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            <td align="left" valign="bottom" width="2%">&#160;</td>
            <td align="left" valign="top" width="49%">&#160;</td>
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            <td align="left" valign="bottom" width="2%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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                of Investor Conference Call held March 6, 2008 discussing financial
                results for the quarter and the year ended December 31,
                2007.</font></div>
            </td>
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      </table>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">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.&#160;</font></div>
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          <tr>
            <td align="left" valign="top" width="37%">
              <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Dated:
                March 7, 2008</font></div>
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            <td align="left" colspan="4" valign="top" width="35%">
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            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="37%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="37%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" colspan="4" valign="top" width="35%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">ENERGY
                FOCUS, INC.</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="37%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" colspan="4" valign="top" width="35%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="37%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="top" width="3%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">By</font></div>
            </td>
            <td align="left" colspan="2" valign="top" width="24%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">/s/
                John M. Davenport</font></div>
            </td>
            <td align="left" valign="top" width="9%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="37%">&#160;</td>
            <td align="left" valign="top" width="3%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Name:</font></div>
            </td>
            <td align="left" colspan="2" valign="top" width="24%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">John
                M. Davenport</font></div>
            </td>
            <td align="left" valign="top" width="9%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="37%">&#160;</td>
            <td align="left" valign="top" width="3%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Title:</font></div>
            </td>
            <td align="left" colspan="2" valign="top" width="24%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">President
                &amp; Chief Executive Officer</font></div>
            </td>
            <td align="left" valign="top" width="9%">&#160;</td>
          </tr>

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

          <tr>
            <td align="left" valign="top" width="6%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Exhibit
                No.</strong></font></div>
            </td>
            <td valign="bottom" width="2%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
            </td>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Description</strong></font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="6%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="bottom" width="2%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="top" width="49%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
          </tr>
          <tr>
            <td valign="top" width="6%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">99.1</font></div>
            </td>
            <td align="left" valign="bottom" width="2%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="top" width="49%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Press
                Release dated March 6, 2008 announcing financial results for the
                quarter
                and the year ended December 31, 2007.</font></div>
            </td>
          </tr>
          <tr>
            <td valign="top" width="6%">&#160;</td>
            <td align="left" valign="bottom" width="2%">&#160;</td>
            <td align="left" valign="top" width="49%">&#160;</td>
          </tr>
          <tr>
            <td valign="top" width="6%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">99.2</font></div>
            </td>
            <td align="left" valign="bottom" width="2%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
            </td>
            <td align="left" valign="top" width="49%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Transcript
                of Investor Conference Call held March 6, 2008 discussing financial
                results for the quarter and the year ended December 31,
                2007.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><a name="CondensedConsolidatedBalanceSheets">&#160;</a></div>
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<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>v106396_ex99-1.htm
<TEXT>
<html>
  <head>
    <title>
</title><!-- Licensed to: vf-->
<!-- Document Created using EDGARizer HTML 3.0.4.0 -->
<!-- Copyright 2006 EDGARfilings, Ltd., an IEC company.-->
<!-- All rights reserved EDGARfilings.com -->
</head>
  <body bgcolor="#ffffff">
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Exhibit
      99.1</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 360pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Contact:
      </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">John
      Davenport, CEO</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Eric
      Hilliard, COO</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Nick
      Berchtold, CFO</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">440-715-1300</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>ENERGY
      FOCUS, INC. REPORTS FOURTH QUARTER 2007 RESULTS</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SOLON,
      Ohio, March 6, 2008 -- Energy Focus, Inc. (Nasdaq: </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">EFOI</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)
      today
      announced financial results for the fourth quarter ended December 31, 2007.
      Financial and operating highlights include the following: </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Revenues
                for year were $22,898,000, a decrease of 15% over the sales of $27,036,000
                in 2006. The loss for the full year was $11,316,000 ($0.98 per share)
                compared to $9,650,000 ($0.85 per share) in
                2006.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
                Company finished the year with a balance sheet showing cash at $8,412,000
                and total shareholders equity of $21,619,000. Cash utilization for
                the
                year was $7,556,000, compared to $7,610,000 for 2006.
                </font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Fourth
                quarter revenues were $5,439,000, a 24 % decrease over sales in the
                fourth
                quarter of 2006 of $7,191,000. The net loss in the quarter was $3,665,000
                ($0.31 per share) compared to the net loss of $2,784,000 ($0.24 per
                share)
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            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Operating
                expenses declined by 5%, $208,000, for the quarter. Much of the decrease
                is attributable to lower general and administrative expenses combined
                with
                better expense management during the second half of the year offset
                by
                severance, bad debt expenses and significant reductions in government
                R&amp;D reimbursements. For the full year, operating expenses were flat
                vs. 2006.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">EFO&#174;
                sales increased to $7,011,000, for the full year 2007 compared to
                $5,316,000 million in 2006. This represents an increase of 32%. During
                2007, a reclassification was done which resulted in 2006 EFO&#174; sales
                figures being restated to $5,316,000 from the $4,033,000 previously
                disclosed.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
                company is forecasting EFO&#174; sales to double in 2008, with EFO&#174; sales
                accounting for 50% of EFOI&#8217;s revenue in 2008. 40% of EFO&#174; sales are
                expected in the 1</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><sup>st</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
                half with 60% in 2</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><sup>nd</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
                half. Traditional product sales are expected to continue to decline
                about
                15% over the year. However, with the forecast rise in EFO&#174; sales, overall
                EFOI sales are expected to increase more than 20% in 2008. Cash usage
                for
                the year is expected to be below $5MM with about half used in Q1
                - a
                result of delayed receivables from the Pool division&#8217;s early buy
                program.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">John
      Davenport, Energy Focus President and CEO, said, "While we continue to be
      pleased with EFO&#8217;s increasing traction in our served markets, we are
      disappointed that 2007 revenues and earnings were below expectations. The
      changes we made in 2007 in our organization and leadership will make us much
      stronger in 2008 and in the future. In 2008 EFO sales are expected to dominate
      Energy Focus&#8217; sales for the first time, driving an expected 20% overall revenue
      growth. The sales growth, together with savings from efficiency improvements
      put
      in place in 2007 is expected to reduce cash usage to less than $5,000,000.&#8221;
</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: ">4</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8220;The
      US
      government has finally recognized the need to eliminate inefficient traditional
      incandescent light bulbs. We are already producing energy efficient lighting
      products, utilizing advanced HID and LED sources that meet the efficiency
      requirements mandated to begin in 2012 today. These products serve an
      increasingly energy conscious lighting market. Energy Focus is well positioned
      to serve that emerging market. We are definitely ahead of the curve, from a
      product perspective,&#8221; Davenport added. &#8220;Our challenge in 2008 will be in
      multiplying the ways EFO products get to market.&#8221;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      company recently started selling products to the US government and has entered
      partnerships with TCP, Inc. of Aurora, Ohio, and Eco Engineering LLC of
      Cincinnati, Ohio, to distribute a broad range of its energy efficient lighting
      products to its national customer base. &#8220;We are already seeing significant EFO
      sales of our new military products as well as a result of the relationships
      with
      TCP and Eco Engineering and expect to add to them as a result of ongoing
      discussions with a number of potential partners.&#8221;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Eric
      Hilliard, Energy Focus&#8217;s Chief Operating Officer added, &#8220;2007 was a year with a
      great deal of change in our organization at all levels. We have new faces and
      talent to help drive our business in the direction necessary for success. All
      of
      these changes are directed toward bringing significant growth while keeping
      costs under control as we grow.&#8221; Mr. Hilliard continued, &#8220;We&#8217;re already seeing
      growth from a series of new EFO products launched in January as well as from
      further penetration of our existing EFO products. In addition to the
      organizational changes, we have constructed a new showroom at our world
      headquarters to display our patented technologies in a great aesthetic
      environment, one that we expect will not only demonstrate EFO&#8217;s energy saving
      but its great lighting quality and versatility as well. This showroom will
      help
      drive the growth by allowing us to bring those qualities home to architects,
      designers and lighting specifiers. Finally, we&#8217;ll launch a newly revamped web
      site in May. Its much improved look and feel is also expected to have a positive
      sales impact.&#8221; </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Energy
      Focus, Inc.</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>&#160;</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">management
      will host a conference call on March 6, 2008 at 11:30 a.m. EDT (8:30 a.m. PDT)
      to review the fourth Quarter 2007 Financial Results and other corporate events,
      followed by a Q &amp; A session. Dialing 1-866-507-5712 (US/Canada) or
      1-706-758-4961 (International/Local) can access the call. The conference
      I</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">D
      number is 37689584. Participants are asked to call the assigned number
      approximately 10 minutes before the conference call begins. The conference
      call
      will also be available over the Internet at </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #0000ff; FONT-FAMILY: Times New Roman"><strong><u>http://www.energyfocusinc.com</u></strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">
      in the Investor Relations area of the site or by going to </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>http://www.mkr-group.com</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">.
      A replay of the conference call will be available two hours after the call
      for
      the following 7 days by dialing </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1-866-507-5712
      (US/Canada) </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">or
      </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1-706-758-4961
      </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">(international/local)
      and entering the following pass code: 37689584. Also, an instant replay of
      the
      conference call will be available over the Internet at </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #0000ff; FONT-FAMILY: Times New Roman"><strong><u>http://www.energyfocusinc.com</u></strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman">
      on March 21, 2008 and will remain available for one year in the Investor
      Relations area of the site or by going to </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #000000; FONT-FAMILY: Times New Roman"><strong>http://www.mkr-group.com</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: ">5</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">About
      Energy Focus </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Energy
      Focus designs, develops, manufactures and markets fiber optic lighting systems
      for wide-ranging uses in both the general commercial and the pool and spa
      lighting markets. Energy Focus' EFO system, introduced in 2004, offers energy
      savings, heat dissipation and maintenance cost benefits over conventional
      lighting for multiple applications. The Company's headquarters are located
      at
      32000 Aurora Rd., Solon, Ohio. The Company has additional offices in California,
      England and Germany. Telephone: 440-715-1300. Web site: </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; COLOR: #0000ff; FONT-FAMILY: Times New Roman"><u>http://www.energyfocusinc.com</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Forward-looking
      statements in this release are made pursuant to the safe harbor provisions
      of
      the Private Securities Litigation Reform Act of 1995. Such forward-looking
      statements include statements regarding the business outlook for 2008 and
      thereafter the potential growth of EFO sales based upon its energy savings
      over
      LED's and fluorescent lights. Investors are cautioned that all forward-looking
      statements involve risks and uncertainties. Actual results may differ materially
      from the results predicted. Risk factors that could affect the Company's future
      include, but are not limited to, a slowing of the U.S. and world economy and
      its
      effects on Energy Focus' markets, failure to develop marketable products from
      new technologies, failure of EFO or other new products to meet performance
      expectations, higher than anticipated expenses, unanticipated costs of
      integrating acquisitions into the Energy Focus operation, delays in
      manufacturing of products, increased competition, other adverse sales and
      distribution factors and greater than anticipated costs and/or warranty
      expenses. For more information about potential factors which could affect Energy
      Focus financial results, please refer to the Company's SEC reports, including
      its Annual Reports on Form 10-K and its quarterly reports on Form 10-Q. These
      forward-looking statements speak only as of the date hereof. Energy Focus
      disclaims any intention or obligation to update or revise any forward-looking
      statements. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div><br>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: ">6</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div>&#160;</div>
    <div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>ENERGY
        FOCUS, INC.</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><a name="CondensedConsolidatedBalanceSheets"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">CONDENSED</font></a></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">CONSOLIDATED
        BALANCE SHEETS</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>(amounts
        in thousands)</em></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" id="ftable" width="100%">

            <tr>
              <td align="left" valign="bottom" width="71%">&#160;</td>
              <td width="2%">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>December
                  31,&#160;</strong></font>&#160;</div>
              </td>
              <td align="left" valign="bottom" width="2%">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="11%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>December
                  31,</strong></font>&#160;</div>
              </td>
              <td align="left" valign="bottom" width="1%">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="71%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2007</strong></font>&#160;</div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2006</strong></font>&#160;</div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="71%">&#160;</td>
              <td width="2%">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(unaudited)</strong></font>&#160;</div>
              </td>
              <td align="left" valign="bottom" width="2%">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="11%">&#160;</td>
              <td align="left" valign="bottom" width="1%">&#160;</td>
            </tr>
            <tr bgcolor="#ccffcc">
              <td align="left" valign="bottom" width="71%" style="border-bottom: #ccffcc;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>ASSETS</strong></font></div>
              </td>
              <td width="2%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="11%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="border-bottom: white;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Current
                  assets:</font></div>
              </td>
              <td width="2%" style="border-bottom: white;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
              <td align="right" colspan="2" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            </tr>
            <tr bgcolor="#ccffcc">
              <td align="left" valign="bottom" width="71%" style="border-bottom: #ccffcc;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cash
                  and cash equivalents</font></div>
              </td>
              <td width="2%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">8,412</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3,705</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="border-bottom: white;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Short-term
                  investments</font></div>
              </td>
              <td width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0
                  </font></div>
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              <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">12,263
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            </tr>
            <tr bgcolor="#ccffcc">
              <td align="left" valign="bottom" width="71%" style="border-bottom: #ccffcc;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Accounts
                  receivable trade, net </font></div>
              </td>
              <td width="2%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3,454
                  </font></div>
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              <td align="left" valign="bottom" width="2%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">6,185
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="border-bottom: white;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Inventories,
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              </td>
              <td width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">6,888
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">7,708
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            </tr>
            <tr bgcolor="#ccffcc">
              <td align="left" valign="bottom" width="71%" style="border-bottom: #ccffcc solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Prepaid
                  and other current assets</font></div>
              </td>
              <td width="2%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">381
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">324
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="border-bottom: white;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 45pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                  current assets</font></div>
              </td>
              <td width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">19,135
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">30,185
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            </tr>
            <tr bgcolor="#ccffcc">
              <td align="left" valign="bottom" width="71%" style="border-bottom: #ccffcc;">&#160;</td>
              <td width="2%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="border-bottom: white;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Fixed
                  assets, net</font></div>
              </td>
              <td width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">5,316
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">5,978
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            </tr>
            <tr bgcolor="#ccffcc">
              <td align="left" valign="bottom" width="71%" style="border-bottom: #ccffcc;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Goodwill,
                  net</font></div>
              </td>
              <td width="2%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">4,359
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">4,247
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="border-bottom: white solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Other
                  assets</font></div>
              </td>
              <td width="2%" style="border-bottom: white thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">59</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">182
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
            </tr>
            <tr bgcolor="#ccffcc">
              <td align="left" valign="bottom" width="71%" style="border-bottom: #ccffcc solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 45pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                  assets</font></div>
              </td>
              <td width="2%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">28,869</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ccffcc solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">40,592</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc solid;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="border-bottom: white;">&#160;</td>
              <td width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">

              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">

              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            </tr>
            <tr bgcolor="#ccffcc">
              <td align="left" valign="bottom" width="71%" style="border-bottom: #ccffcc;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>LIABILITIES</strong></font></div>
              </td>
              <td width="2%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="border-bottom: white;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Current
                  liabilities:</font></div>
              </td>
              <td width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            </tr>
            <tr bgcolor="#ccffcc">
              <td align="left" valign="bottom" width="71%" style="border-bottom: #ccffcc;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Accounts
                  payable</font></div>
              </td>
              <td width="2%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,265</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">4,202</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="border-bottom: white;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Accrued
                  liabilities</font></div>
              </td>
              <td width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,473
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,671
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            </tr>
            <tr bgcolor="#ccffcc">
              <td align="left" valign="bottom" width="71%" style="border-bottom: #ccffcc;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Credit
                  line borrowings</font></div>
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              <td width="2%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,159
                  </font></div>
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              <td align="left" valign="bottom" width="2%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,124
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="border-bottom: white solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Current
                  portion of long-term bank borrowings</font></div>
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              <td width="2%" style="border-bottom: white thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,726
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">778
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
            </tr>
            <tr bgcolor="#ccffcc">
              <td align="left" valign="bottom" width="71%" style="border-bottom: #ccffcc;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 45pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                  current liabilities</font></div>
              </td>
              <td width="2%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">6,623
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">7,775
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="border-bottom: white;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Other
                  liabilities</font></div>
              </td>
              <td width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">62</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">---</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            </tr>
            <tr bgcolor="#ccffcc">
              <td align="left" valign="bottom" width="71%" style="border-bottom: #ccffcc;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Deferred
                  tax liabilities</font></div>
              </td>
              <td width="2%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">252
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">75
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="border-bottom: white solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Long-term
                  bank borrowings</font></div>
              </td>
              <td width="2%" style="border-bottom: white thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">314
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,862
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
            </tr>
            <tr bgcolor="#ccffcc">
              <td align="left" valign="bottom" width="71%" style="border-bottom: #ccffcc solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 45pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                  liabilities</font></div>
              </td>
              <td width="2%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">7,251
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">9,712
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="border-bottom: white;">&#160;</td>
              <td width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            </tr>
            <tr bgcolor="#ccffcc">
              <td align="left" valign="bottom" width="71%" style="border-bottom: #ccffcc;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>SHAREHOLDERS&#8217;
                  EQUITY</strong></font></div>
              </td>
              <td width="2%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="border-bottom: white;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Common
                  stock</font></div>
              </td>
              <td width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            </tr>
            <tr bgcolor="#ccffcc">
              <td align="left" valign="bottom" width="71%" style="border-bottom: #ccffcc;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Additional
                  paid-in capital</font></div>
              </td>
              <td width="2%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">55,682
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">53,841
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="border-bottom: white;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Accumulated
                  other comprehensive income</font></div>
              </td>
              <td width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">815
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">601
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            </tr>
            <tr bgcolor="#ccffcc">
              <td align="left" valign="bottom" width="71%" style="border-bottom: #ccffcc solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 18pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Accumulated
                  deficit</font></div>
              </td>
              <td width="2%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(34,880</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ccffcc thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(23,563</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="71%" style="border-bottom: white solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 45pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                  shareholders&#8217; equity</font></div>
              </td>
              <td width="2%" style="border-bottom: white thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">21,618
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">30,880
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
            </tr>
            <tr bgcolor="#ccffcc">
              <td align="left" valign="bottom" width="71%" style="border-bottom: #ccffcc solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 45pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                  liabilities and shareholders&#8217; equity</font></div>
              </td>
              <td width="2%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">28,869</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ccffcc solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
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        accompanying notes are an integral part of these financial
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      <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="left">&#160;</div>
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        <div id="PN" style="PAGE-BREAK-AFTER: always">
          <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: ">7</font></div>
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        <div id="HDR">
          <div id="GLHDR" style="WIDTH: 100%" align="right">&#160;</div>
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      <div>&#160;</div>
      <div>&#160;</div>
      <div>
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            <tr>
              <td align="left" valign="bottom" width="43%">&#160;</td>
              <td width="2%">&#160;</td>
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                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Three
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              <td align="left" valign="bottom" width="2%">&#160;</td>
              <td align="left" colspan="5" valign="bottom" width="26%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Twelve
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              <td align="left" valign="bottom" width="1%">&#160;</td>
            </tr>
            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" colspan="5" valign="bottom" width="26%" style="border-bottom: black thin solid;">
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              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
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                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center">&#160;&#160;<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>ended
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            <tr>
              <td align="left" valign="bottom" width="43%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2007
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              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2006
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              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2007
                  </strong></font></div>&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ffffff solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>2006
                  </strong></font></div>&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff solid;">&#160;</td>
            </tr>
            <tr bgcolor="#ccffcc">
              <td align="left" valign="bottom" width="43%" style="border-bottom: #ccffcc;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
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              <td width="2%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">5,439
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              <td align="left" valign="bottom" width="2%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">7,191
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
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              <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">22,898
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">27,036
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="43%" style="border-bottom: white solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cost
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              <td width="2%" style="border-bottom: white thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">4,895
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">5,372
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">16,616
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">19,251
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
            </tr>
            <tr bgcolor="#ccffcc">
              <td align="left" valign="bottom" width="43%" style="border-bottom: #ccffcc solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Gross
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              <td width="2%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">544
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,819
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">6,282
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">7,785
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="43%" style="border-bottom: white;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Operating
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              </td>
              <td width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">

              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">

              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">

              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">

              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            </tr>
            <tr bgcolor="#ccffcc">
              <td align="left" valign="bottom" width="43%" style="border-bottom: #ccffcc;">&#160;</td>
              <td width="2%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="43%" style="border-bottom: white;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Research
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              </td>
              <td width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">944
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">820
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,907
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,341
                  </font></div>
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              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
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            <tr bgcolor="#ccffcc">
              <td align="left" valign="bottom" width="43%" style="border-bottom: #ccffcc;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Sales
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              <td width="2%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">
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              <td align="left" valign="bottom" width="2%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,642
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              <td align="left" valign="bottom" width="2%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">9,788
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              <td align="left" valign="bottom" width="2%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">
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              <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
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            <tr bgcolor="white">
              <td align="left" valign="bottom" width="43%" style="border-bottom: white;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">General
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              <td width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">837
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              <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,038
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              <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">4,651
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              <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">4,956
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              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
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            <tr bgcolor="#ccffcc">
              <td align="left" valign="bottom" width="43%" style="border-bottom: #ccffcc solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Restructure
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              <td width="2%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">60
                  </font></div>
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              <td align="left" valign="bottom" width="2%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0
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              <td align="left" valign="bottom" width="2%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">457
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">734
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="43%" style="border-bottom: white solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 45pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
                  operating expenses</font></div>
              </td>
              <td width="2%" style="border-bottom: white thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">4,292
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">4,500
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              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">17,803
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">17,805
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
            </tr>
            <tr bgcolor="#ccffcc">
              <td align="left" valign="bottom" width="43%" style="border-bottom: #ccffcc;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 63pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Loss
                  from operations</font></div>
              </td>
              <td width="2%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(3,748</font></div>
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              <td align="left" valign="bottom" width="2%" style="border-bottom: #ccffcc;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(2,681</font></div>
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              <td align="left" valign="bottom" width="2%" style="border-bottom: #ccffcc;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(11,521</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ccffcc;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(10,020</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
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            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="43%" style="border-bottom: white;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Other
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              <td width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            </tr>
            <tr bgcolor="#ccffcc">
              <td align="left" valign="bottom" width="43%" style="border-bottom: #ccffcc;">&#160;</td>
              <td width="2%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="43%" style="border-bottom: white solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Interest
                  income/ (expense)</font></div>
              </td>
              <td width="2%" style="border-bottom: white thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">128
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">113
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">395
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">483
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
            </tr>
            <tr bgcolor="#ccffcc">
              <td align="left" valign="bottom" width="43%" style="border-bottom: #ccffcc;">&#160;</td>
              <td width="2%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">

              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">

              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">

              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">

              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="43%" style="border-bottom: white;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 63pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Loss
                  before income taxes</font></div>
              </td>
              <td width="2%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(3,620</font></div>
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              <td align="left" valign="bottom" width="2%" style="border-bottom: white;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(2,568</font></div>
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              <td align="left" valign="bottom" width="2%" style="border-bottom: white;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(11,126</font></div>
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              <td align="left" valign="bottom" width="2%" style="border-bottom: white;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(9,537</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
            </tr>
            <tr bgcolor="#ccffcc">
              <td align="left" valign="bottom" width="43%" style="border-bottom: #ccffcc solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Benefit
                  from (provision for) income taxes</font></div>
              </td>
              <td width="2%" style="border-bottom: #ccffcc thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(45</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ccffcc thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(216</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ccffcc thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(190</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ccffcc thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(113</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="43%" style="border-bottom: white solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 63pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                  loss</font></div>
              </td>
              <td width="2%" style="border-bottom: white thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(3,665</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(2,784</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(11,316</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(9,650</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
            </tr>
            <tr bgcolor="#ccffcc">
              <td align="left" valign="bottom" width="43%" style="border-bottom: #ccffcc;">&#160;</td>
              <td width="2%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">

              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">

              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">

              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">

              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="43%" style="border-bottom: white solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
                  loss per share - basic and diluted</font></div>
              </td>
              <td width="2%" style="border-bottom: white thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(0.31</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(0.24</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(0.98</font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
              </td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">(0.85</font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">)</font></div>
              </td>
            </tr>
            <tr bgcolor="#ccffcc">
              <td align="left" valign="bottom" width="43%" style="border-bottom: #ccffcc;">&#160;</td>
              <td width="2%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">

              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">

              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">

              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: #ccffcc;">

              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: #ccffcc;">&#160;</td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="bottom" width="43%" style="border-bottom: white solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Shares
                  used in computing net loss per share - basic and diluted</font></div>
              </td>
              <td width="2%" style="border-bottom: white thin solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">11,600
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">11,392
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">11,
                  500 </font></div>
              </td>
              <td align="left" valign="bottom" width="2%" style="border-bottom: white solid;">&#160;</td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: black double;">&#160;</td>
              <td align="right" valign="bottom" width="11%" style="border-bottom: black double;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">11,385
                  </font></div>
              </td>
              <td align="left" valign="bottom" width="1%" style="border-bottom: white solid;">&#160;</td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
        accompanying notes are an integral part of these financial
        statements</font></div>
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<DOCUMENT>
<TYPE>EX-99.2
<SEQUENCE>3
<FILENAME>v106396_ex99-2.htm
<TEXT>
<html>
  <head>
    <title>
</title><!-- Licensed to: vf-->
<!-- Document Created using EDGARizer HTML 3.0.4.0 -->
<!-- Copyright 2006 EDGARfilings, Ltd., an IEC company.-->
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</head>
  <body bgcolor="#ffffff"><a name="CondensedConsolidatedBalanceSheets"/>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Exhibit
      99.2</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>ENERGY
      FOCUS</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Moderator:</strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>John
      Davenport</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>March
      6, 2008</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>10:30
      a.m. CT</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: -36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br><br></div>
    <div align="center">
      <table bgcolor="white" cellpadding="0" cellspacing="0" width="100%">

          <tr bgcolor="white">
            <td valign="top" width="15%"><font size="2">Operator:</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;</font></font></td>
            <td width="2%">&#160;</td>
            <td width="83%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Good
                morning, my name is (Marcy) and I will be your conference operator
                today.
                At this time, I would like to welcome everyone to the fourth quarter
                and
                total year 2007 earnings conference call. All lines have been placed
                on
                mute to prevent any background noise. After the speaker&#8217;s remarks, there
                will be a question-and-answer session. If you would like to ask a
                question
                during this time, simply press star then the number one on your telephone
                keypad. If you have already done so, please press star two at this
                time,
                then press star one again to ensure your question is
                registered.</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">
            </td>
            <td width="2%">&#160;</td>
            <td width="83%"><font size="2">Thank you. Mr. Davenport, you may begin
              your
              conference.</font></td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="top" width="15%"><font size="2">John Davenport:</font></td>
            <td width="2%">&#160;</td>
            <td width="83%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Thank
                you very much Marcy. On the call with me is Eric Hilliard, our chief
                operating officer. I&#8217;ll start with a few comments, and then we&#8217;ll have a
                chance to hear from Eric before we open it up to questions. We&#8217;ll try to
                keep the call to about an hour.</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">But
                first, I am required to remind you that forward-looking statements
                made on
                this conference call are pursuant to the safe harbor provisions of
                the
                Private Securities Litigation Reform Act of 1995. Such forward-looking
                statements include statements regarding our goals and outlook for
                2008 and
                thereafter, future EFO sales, enhancements to EFO, our revenue and
                our RFO
                funding. Investors are cautioned that all forward-looking statements
                involve risk and uncertainty. Actual results may differ materially
                from
                the results predicted.</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
          </tr>

      </table>
    </div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">&#160;</div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">9</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">&#160;</div>
      </div>
    </div>
    <div>&#160;</div>
    <div>
      <table bgcolor="white" cellpadding="0" cellspacing="0" width="100%">

          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Factors
                that could cause the actual results to materially differ from the
                forward-looking statements in this presentation are set forth in
                our most
                recent annual report on Form 10-K for the year ended December 31,
                2006. We
                disclaim any intention or obligation to update or revise any
                forward-looking statements.</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Now
                I&#8217;d like to address a few items briefly before turning it over to Eric.
                First, I&#8217;ll address our overall 2007 and Q4 results. Then I&#8217;ll give you
                our forecast for the business in 2008. And finally, I&#8217;ll turn it over to
                Eric for some specifics.</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">First,
                our 2007 year end and Q4 results. Total revenues for 2007 were a
                disappointing 23 million, a 15 percent decrease over 2006 due to
                declines
                in traditional product revenues and in particular pool revenues which
                were
                off 2.2 million for the year, due to a continued decline in the housing
                market. Q4 revenues were at $5.4 million off 24 percent over 2006,
                again,
                due primarily to a decline in pool revenues.</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">
              <div style="DISPLAY: block; MARGIN-LEFT: 90pt; TEXT-INDENT: -90pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">EFO
                for the sales, for the year, however increased to $7 million with
                EFO now
                representing about 30 percent of total sales for 2007. EFO sales
                in Q4
                were $2 million.</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">
            </td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cash
                usage for the year was held to $7.5 million a slight reduction versus
                2006
                in spite of a revenue reduction of $4 million. This was the result
                of cost
                reductions during the year. Year end cash was at $8.4
                million.</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">
            </td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">There
                was also considerable progress in 2007 in developing EFO technology.
                Energy Focus now has 55 issued patents, 6 more than this time last
                year,
                with 35 applications in progress. Energy Focus was awarded a $1 million
                contract to develop VHESC - Very High Efficiency Solar Collection
                with
                DuPont and others for the Department of Defense. Energy Focus is
                responsible for the optics which has allowed the team to achieve
                a record
                breaking 42.9 percent in efficiency.</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">
            </td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We&#8217;ve
                also developed four new LED product families which were introduced
                in
                January and are already generating sales. In 2008, we expect to double
                EFO
                sales for the year to 14 million with about 60 percent coming in
                the
                second half of the year. At that level, EFO sales will represent
                more than
                50 percent of revenues for 2008.</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
          </tr>

      </table>
    </div>
    <div><br>&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">&#160;</div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">10</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">&#160;</div>
      </div>
    </div>
    <div>&#160;</div>
    <div>
      <table bgcolor="white" cellpadding="0" cellspacing="0" width="100%">

          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Unfortunately,
                we also expect traditional product sales to continue to decrease,
                led by
                continued pool sales decline in a difficult housing market, by about
                15
                percent for 2008. However, with the forecast EFO sales, overall sales
                should increase more than 20 percent in 2008. This takes us back
                to 2006
                revenue levels but with a big difference. EFO will have grown from
                5
                percent to more than 50 percent of the business.</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">
            </td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Increased
                sales together with a reduction in expenses due to changes made in
                2007
                are expected to limit cash usage to less than $5 million positioning
                the
                company for positive cash flow in 2009. This still allows for a
                significant investment in solar and other advanced HID and LED-based
                EFO
                technologies to drive future product offerings.</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">However,
                the company is very much aware that given its $8.4 million on the
                balance
                sheet, as of December 31 and a forecast $5 million usage 2008 of
                its
                having to meet cash needs on a timely basis and is exploring a number
                of
                avenues to ensure that we accomplish this including equity financing,
                debt
                financing, refinancing of existing debt or a combination of those
                means.
                At the appropriate time, we&#8217;ll provide definitive information to our
                investors.</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">
            </td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Regarding
                the first half in particular of 2008 we expect to see EFO revenues
                to
                double in the first half of &#8216;08 versus &#8216;07 as a result of, first,
                increased traction from our sale force and positive results of our
                recent
                reorganization.</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Secondly,
                increased sales realized due to construction delays in 2007 which
                we&#8217;ll
                get in the first half of 2008. Sales from our new product offerings,
                the
                four new product families that I spoke about earlier and sales from
                new
                channels, the government as well as our TCP and Eco Engineering
                relationships. We&#8217;ll also see reduced cash usage. We expect to reduce
                first half cash usage about 50 percent versus the first half in
                2006.</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
          </tr>

      </table>
    </div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">&#160;</div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">11</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">&#160;</div>
      </div>
    </div>
    <div>&#160;</div>
    <div>
      <table bgcolor="white" cellpadding="0" cellspacing="0" width="100%">

          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">There
                will be further organizational changes in 2008. We&#8217;ve added a marketing
                manager and we&#8217;ll add a senior business development manager who will focus
                on new business activities. These adds will be offset by further
                reductions elsewhere.</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Now
                I&#8217;d like to turn it over to Eric.</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="top" width="15%"><font size="2">Eric Hilliard:</font></td>
            <td width="2%">&#160;</td>
            <td width="83%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Thanks,
                John. Hello, everybody. I&#8217;d like to let you know where we are as of today.
                And then I&#8217;ll talk about how we got here, and most importantly, where
                we&#8217;re headed. So far we&#8217;ve shipped in backlog approximately $5 million in
                the first quarter, with additional backlog of $1.3 million. EFO shipped
                and backlog products for 2008 is already more than $3 million. This
                is why
                we believe we will more than double of the EFO sales in 2008 as they
                compare to 2007.</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">I&#8217;d
                like to frame this by discussing our changes in 2007, as they relate
                to
                our organization, our strategy, and our financial expectations. So
                first,
                I&#8217;ll frame this in our organization.</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Organizationally,
                accountability is important. And to establish this, we had many changes
                in
                leadership position throughout 2007. They occurred in our U.S. commercial
                group, our full group and our financial group. Additionally, these
                three
                groups have seen significant reductions in total head count towards
                sizing
                the business to the volume of sales that is being generated as well
                as the
                expectations of profit necessary to move closer to a cash flow neutral
                business. The total reduction being recognized just in the U.S. alone
                is
                $1 million in overhead and operating expenses.</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Secondly,
                our strategy. Our strategy towards increasing the commercial growth
                has
                evolved. We have added four new commercial LED product applications
                with a
                total of 9 offerings within these lines. The products are spin-offs
                from
                the military development with the United States Navy and have allowed
                for
                highly efficient optically focused LEDs that display advanced thermal
                properties for long life. Because these products are military developed,
                they offer durable design and protection of rugged environments.
                These
                products launched in January are available not only from our internal
                sales people as well as our manufacturers reps but now through two
                strategic partnerships for distribution in the United
                States.</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
          </tr>

      </table>
    </div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">&#160;</div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">12</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">&#160;</div>
      </div>
    </div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div>
      <table bgcolor="white" cellpadding="0" cellspacing="0" width="100%">

          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">These
                two new alliances have allowed for greater exposure to national accounts
                with our products which will allow for a much faster and less expensive
                market introduction of the products. I am currently working on two
                new
                alliances in Canada which will allow us to distribute our products
                in a
                similar fashion and again, be extremely cost effective in rolling
                out our
                new and existing EFO products.</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">
            </td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Further,
                our government business unit has shown great movement towards direct
                sales
                into the military. We have three ships with products still at sea
                and have
                sold our products on some bases and into a commissary as well. With
                these
                new additions to our selling approaches, we have also continued our
                traction into our existing accounts. Whole Foods now have over stores
                with
                increased sales volume for store orders. Wal-Mart Mexico continues
                to
                install our product. We now have four installations at two locations.
                The
                Limited Brands Bath and Body Works has several stores since our initial
                installation. And we have been approved for a retro fit installation
                with
                a new large U.S. retailer. We&#8217;re talking about a potential of 200 plus
                stores.</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">
            </td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Finally,
                EFOI has previewed its new showroom in Solon, Ohio, and we toured
                four
                groups. When they saw the EFO technology in an environment that not
                only
                displays the EFO energy savings but its great lighting quality and
                versatility, they were really excited. In fact, with the last tour
                we had
                one of the fastest closes with a new account we have ever had. In
                fact, I
                received a purchase order yesterday.</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">
            </td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
                grand opening is scheduled to be on May 2nd. We will have a founding
                member of the U.S. Green Building Council, as well as a U.S. congressman
                from Ohio as key note speakers. They will be talking about the impact
                of
                the new House bill banning the incandescent light bulb and how
                technologies like EFOI are poised to provide today what Congress
                is
                mandating in the future.</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">
            </td>
          </tr>

      </table>
    </div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">&#160;</div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">13</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">&#160;</div>
      </div>
    </div>
    <div>&#160;</div>
    <div>
      <table bgcolor="white" cellpadding="0" cellspacing="0" width="100%">

          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">And
                finally, the 2008 financials. All of the changes just described are
                intended to provide the growth in 2008; 20 percent overall growth
                in sales
                worldwide with the doubling of EFO over 2007 actuals, 40 percent
                of which
                will come in the first half of 2008. EFO will have cash usage of
                not more
                than $5 million as we have cut costs but still need to invest into
                Solar,
                LED and HID technologies. Finally, 2008 will be the first year that
                we&#8217;ll
                show EFO product sales of more than 50 percent of the total company
                sales
                worldwide. And with that, I will turn the call back to John. Thank
                you.</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="top" width="15%"><font size="2">John Davenport:</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font></td>
            <td width="2%">&#160;</td>
            <td width="83%">
              <div style="DISPLAY: block; MARGIN-LEFT: 90pt; TEXT-INDENT: -90pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Thanks,
                Eric. And now I&#8217;d like to open it up for any questions.</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="top" width="15%"><font size="2">Operator:</font></td>
            <td width="2%">&#160;</td>
            <td width="83%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">At
                this time, I would like to remind everyone, in order to ask a question
                press star then the number one on your telephone keypad. If you would
                like
                to withdraw your question press star then the number two on your
                telephone
                keypad. We&#8217;ll pause for just a moment to compile the Q&amp;A
                roster.</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">
            </td>
            <td width="2%">&#160;</td>
            <td width="83%">
            </td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">And
                your first question comes from (Brian Tenov) with Merriman, Curhan,
                Ford.</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="top" width="15%"><font size="2">(Brian Tanous):</font></td>
            <td width="2%">&#160;</td>
            <td width="83%">
              <div style="DISPLAY: block; MARGIN-LEFT: 90pt; TEXT-INDENT: -90pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Good
                morning, John and Eric.</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="top" width="15%"><font size="2">John Davenport:</font></td>
            <td width="2%">&#160;</td>
            <td width="83%">
              <div style="DISPLAY: block; MARGIN-LEFT: 90pt; TEXT-INDENT: -90pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Good
                morning, Brian.</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="top" width="15%"><font size="2">Eric Hilliard:</font></td>
            <td width="2%">&#160;</td>
            <td width="83%">
              <div style="DISPLAY: block; MARGIN-LEFT: 90pt; TEXT-INDENT: -90pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Hi,
                Brian.</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="top" width="15%"><font size="2">(Brian Tanous):</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font></td>
            <td width="2%">&#160;</td>
            <td width="83%">
              <div style="DISPLAY: block; MARGIN-LEFT: 90pt; TEXT-INDENT: -90pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">I
                have a couple of quick housekeeping questions and then I&#8217;ll come back, but
                first some additional color.</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Regarding
                your commentary about the 5 million of products shipped to date,
                I guess
                that&#8217;s total revenue you&#8217;re referencing for the first quarter of &#8216;08 and
                coupled with the 1.3 million backlog attached to it, is that
                accurate?</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
          </tr>

      </table>
    </div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">&#160;</div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">14</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">&#160;</div>
      </div>
    </div>
    <div>&#160;</div>
    <div>
      <table bgcolor="white" cellpadding="0" cellspacing="0" width="100%">

          <tr bgcolor="white">
            <td valign="top" width="15%"><font size="2">Eric Hilliard:</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font></td>
            <td width="2%">&#160;</td>
            <td width="83%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">No.
                Let me restate that. I think you might have not caught what I said
                there.
                I&#8217;m saying that we have shipped and backlogged approximately $5 million
                in
                the first quarter and we have an additional backlog of 1.3
                million.</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="top" width="15%"><font size="2">(Brian Tanous):</font></td>
            <td width="2%">&#160;</td>
            <td width="83%">
              <div style="DISPLAY: block; MARGIN-LEFT: 90pt; TEXT-INDENT: -90pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">OK.
                Excellent. Thank you. The - and I believe I heard you say 3 million
                of EFO
                shipped in &#8216;08 to date, correct?</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="top" width="15%"><font size="2">Eric Hilliard:</font></td>
            <td width="2%">&#160;</td>
            <td width="83%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">No.
              What I said was we have EFO shipped and backlogged in 2008 of $3 million
              so far.</font></td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="top" width="15%"><font size="2">(Brian Tanous):</font></td>
            <td width="2%">&#160;</td>
            <td width="83%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">OK.
                So the same. All right, so that&#8217;s very good. Finally, regarding your
                commentary on the operating expense reduction for &#8216;08, did I hear you
                correctly in saying that you expect it to be reduced by 1 million
                for the
                fiscal year?</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="top" width="15%"><font size="2">Eric Hilliard:</font></td>
            <td width="2%">&#160;</td>
            <td width="83%">
              <div style="DISPLAY: block; MARGIN-LEFT: 90pt; TEXT-INDENT: -90pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
                the U.S., that is correct. We worked hard in the United States to
                reduce
                our operating expenses and just here, it does total 1 million for
                the
                year.</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="top" width="15%"><font size="2">(Brian Tanous):</font></td>
            <td width="2%">&#160;</td>
            <td width="83%">
              <div style="DISPLAY: block; MARGIN-LEFT: 90pt; TEXT-INDENT: -90pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">And
                that&#8217;s 2008, correct.</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="top" width="15%"><font size="2">Eric Hilliard:</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font></td>
            <td width="2%">&#160;</td>
            <td width="83%"><font size="2">That&#8217;s correct.</font></td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="top" width="15%"><font size="2">(Brian Tanous):</font></td>
            <td width="2%">&#160;</td>
            <td width="83%">
              <div style="DISPLAY: block; MARGIN-LEFT: 90pt; TEXT-INDENT: -90pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">OK.
                Great. I&#8217;ll get back in the queue for some additional questions, thank
                you.</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="top" width="15%"><font size="2">John Davenport:</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font></td>
            <td width="2%">&#160;</td>
            <td width="83%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Thank
              you, (Brian).</font></td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="top" width="15%"><font size="2">Operator:</font></td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Your
              next question comes from (Robert Smith) with Center for Performance
              Investing.</font></td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="top" width="15%"><font size="2">(Robert Smith):</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font></td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Good
              morning.</font></td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
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          <tr bgcolor="white">
            <td valign="top" width="15%"><font size="2">John Davenport:</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font></td>
            <td width="2%">&#160;</td>
            <td width="83%">
              <div style="DISPLAY: block; MARGIN-LEFT: 90pt; TEXT-INDENT: -90pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Good
                morning, (Bob).</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
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          <tr bgcolor="white">
            <td valign="top" width="15%"><font size="2">(Robert Smith):</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font></td>
            <td width="2%">&#160;</td>
            <td width="83%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">So
                this comment about the 200 store possibility, my question before
                I heard
                that was when are we going to move away from the isolated order to
                the
                breakthrough order that validates the technology. So would you call
                this
                kind of a beginning? Or when are we going to see this kind of
                breakthrough?</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
          </tr>

      </table>
    </div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">&#160;</div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">15</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">&#160;</div>
      </div>
    </div>
    <div>&#160;</div>
    <div>
      <table bgcolor="white" cellpadding="0" cellspacing="0" width="100%">

          <tr bgcolor="white">
            <td valign="top" width="15%"><font size="2">John Davenport:</font></td>
            <td width="2%">&#160;</td>
            <td width="83%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Well,
                I think that we&#8217;re seeing - we&#8217;re beginning to see that. We&#8217;re seeing
                multiple stores. We also talked about - we&#8217;re seeing multiple stores now,
                also from The Limited. So we&#8217;re beginning to see - beginning to penetrate
                into locations where there is significant opportunity and that&#8217;s going to
                support in large part this doubling of sales that we&#8217;re forecasting for
                EFO in 2008.</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="top" width="15%"><font size="2">(Robert Smith):</font></td>
            <td width="2%">&#160;</td>
            <td width="83%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Back
                east, here in New York, I hear on the radio a commercial that&#8217;s run by
                United Technologies Carrier division which says they have achieved
                a 30
                percent increased efficiency in refrigerator cases over the last
                two
                years. And I know you guys really have done quite a bit better than
                that.
                And I&#8217;m wondering, what&#8217;s taking so long in this respect to really
                penetrate that market?</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="top" width="15%"><font size="2">Eric Hilliard:</font></td>
            <td width="2%">&#160;</td>
            <td width="83%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Into
                the freezer case market, I think that the penetration - there&#8217;s a
                multitude of landscapes there. And we are working with the freezer
                case
                manufacturer still. We actually have - we may have especially sold
                more of
                our product into the regional supermarket. And I think we&#8217;re finding that
                that&#8217;s really where we&#8217;re getting the better traction at the regional
                levels of these freezer case opportunities. Because they&#8217;re really in need
                of that margin improvement where the national chains, they still
                follow a
                lot of the (traditional) distribution channels that have existed
                for quite
                a long time. And it - we recognize to break in through that, it&#8217;s a little
                bit more than just the energy story that needs to be provided. There
                are
                still some other competitive landscapes there as well.</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="top" width="15%"><font size="2">(Robert Smith):</font></td>
            <td width="2%">&#160;</td>
            <td width="83%">
              <div style="DISPLAY: block; MARGIN-LEFT: 90pt; TEXT-INDENT: -90pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">I
                can&#8217;t believe that the bottom line would not be a very powerful sales
                tool
                in this kind of an economic environment.</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="top" width="15%"><font size="2">Eric Hilliard:</font></td>
            <td width="2%">&#160;</td>
            <td width="83%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Well,
                I don&#8217;t disagree. I think the bottom line is always a powerful tool. I&#8217;m
                saying that there&#8217;s more of that competitive landscape than just offering
                the energy story in these major changes in this
                landscape.</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
          </tr>

      </table>
    </div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
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      </div>
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        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">16</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">&#160;</div>
      </div>
    </div>
    <div>&#160;</div>
    <div>
      <table bgcolor="white" cellpadding="0" cellspacing="0" width="100%">

          <tr bgcolor="white">
            <td valign="top" width="15%"><font size="2">John Davenport:</font></td>
            <td width="2%">&#160;</td>
            <td width="83%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
              found out &#8230;</font></td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="top" width="15%"><font size="2">(Robert Smith):</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font></td>
            <td width="2%">&#160;</td>
            <td width="83%"><font size="2">What is it? What are the other elements
              of
              the story then?</font></td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="top" width="15%"><font size="2">John Davenport:</font></td>
            <td width="2%">&#160;</td>
            <td width="83%"><font size="2">We found out that we do best when we
              are
              solving a problem. For example, in Whole Foods we solved the problem
              - the
              seafood problem where overheating the seafood, that coupled with the
              energy savings was a compelling story for them and we&#8217;re making
              progress.</font></td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="top" width="15%"><font size="2">(Robert Smith):</font></td>
            <td width="2%">&#160;</td>
            <td width="83%"><font size="2">Yes, but gentlemen, I&#8217;m specifically speaking
              about the refrigerator cases, the freezer cases.</font></td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="top" width="15%"><font size="2">John Davenport:</font></td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;<font size="2">Yes, the freezer cases, the energy
              story is important. The fluorescent freezer cases have an Energy Star
              rating. There has been progress made with fluorescent. Although, we&#8217;re
              one-third the energy, you still - those are still more energy efficient
              than the older freezer cases and that story has been playing - it&#8217;s
              continuing to play out. We are making progress in particular with into
              those folks using freezer cases who are really sensitive to the bottom
              line. And these regional folks are very, very sensitive and we&#8217;re making
              inroads.</font></td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="top" width="15%"><font size="2">(Robert Smith):</font></td>
            <td width="2%">&#160;</td>
            <td width="83%"><font size="2">And finally what are your expectations
              with
              the TCP alliance?</font></td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="top" width="15%"><font size="2">Eric Hilliard:</font></td>
            <td width="2%">&#160;</td>
            <td width="83%"><font size="2">Our expectations with this alliance
              are,
              obviously to grow sales. But my expectations when we began this
              partnership and the strategy behind it is that it allows us access
              to more
              national accounts by utilizing you know, their ability to reach the
              accounts we currently have without having to continue to add to the
              fixed
              overhead of our business and have a more, you know, cost effective
              roll
              out of our products into the market. It helps expand the
              market.</font></td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%"><font size="2">So my expectations are to allow our
              commercial growth to grow without having to continue to further the
              investment into our own operating expenses as it has been done in the
              past.</font></td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
          </tr>

      </table>
    </div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">&#160;</div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">17</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">&#160;</div>
      </div>
    </div>
    <div>&#160;</div>
    <div>
      <table bgcolor="white" cellpadding="0" cellspacing="0" width="100%">

          <tr bgcolor="white">
            <td valign="top" width="15%"><font size="2">John Davenport:</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font></td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;

              <div style="DISPLAY: block; MARGIN-LEFT: 90pt; TEXT-INDENT: -90pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">And
                we&#8217;ve been making sales through that outlet. Some of the EFO sales that
                you&#8217;ve heard Eric talk about are, in fact, EFO sales through
                TCP.</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="top" width="15%"><font size="2">Eric Hilliard:</font></td>
            <td width="2%">&#160;</td>
            <td width="83%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Yes,
              and this also will help expedite, I think, the ability to bring a product
              in a much reduced time to the market recognizing the sales - the first
              sales recognized with our - this new distribution approach actually
              occurred as we were in the process of finishing the development and
              coming
              through the UL we actually pre-sold and upon getting UL we were actually
              at - you know, had the orders to move out the door. You know, it&#8217;s working
              the way we expect it to work.</font></td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="top" width="15%"><font size="2">(Robert Smith):</font></td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;

              <div style="DISPLAY: block; MARGIN-LEFT: 90pt; TEXT-INDENT: -90pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">What
                is the contractual relationship would you say or can you
                say?</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="top" width="15%"><font size="2">Eric Hilliard:</font></td>
            <td width="2%">&#160;</td>
            <td width="83%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">No,
              I don&#8217;t really want to, you know, talk about that on the call. But the
              relationship is that we have an alliance, we&#8217;re a true partner in this to
              distribute products and offer our technology through their tremendous
              channels.</font></td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="top" width="15%"><font size="2">(Robert Smith):</font></td>
            <td width="2%">&#160;</td>
            <td width="83%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">OK.
              I&#8217;ll get back in the queue, thank you.</font></td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="top" width="15%"><font size="2">Operator:</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font></td>
            <td width="2%">&#160;</td>
            <td width="83%">
              <div style="DISPLAY: block; MARGIN-LEFT: 90pt; TEXT-INDENT: -90pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Your
                next question comes from (Phil Goldsmith) with Goldsmith and
                Harris.</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="top" width="15%"><font size="2">(Phil Goldsmith):</font></td>
            <td width="2%">&#160;</td>
            <td width="83%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Good
              morning. Just looking at the cash which is down to 8 million and you&#8217;re
              going to burn another 5 million. And you have no significant debt at
              this
              point, what is your expectation in terms of, you know, are you going
              to
              use bank lines to give you some safety net here? Can you get through
              the
              tunnel without the additional equity? What are your plans
              there?</font></td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="top" width="15%"><font size="2">John Davenport:</font></td>
            <td width="2%">&#160;</td>
            <td width="83%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Well,
              I did make a statement earlier and I said that, in fact we are exploring
              a
              number of avenues so that there won&#8217;t be an issue in 2008. And those
              avenues include debt financing that you just talked about, refinancing
              existing debt, and equity financing or a combination of the
              above.</font></td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
          </tr>

      </table>
    </div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">&#160;</div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">18</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
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      </div>
    </div>
    <div>&#160;</div>
    <div>
      <table bgcolor="white" cellpadding="0" cellspacing="0" width="100%">

          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">When
              we&#8217;ve got something definite to report, we&#8217;ll report on that. We fully
              expect in 2008 to be able to meet our obligations.</font></td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="top" width="15%">&#160;<font size="2">(Phil
              Goldsmith):</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font></td>
            <td width="2%">&#160;</td>
            <td width="83%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">All
              right, well, with the expectation that you&#8217;ll either do a debt or equity
              financing or a combination of both what about bank lines, where do
              you
              stand there?</font></td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="top" width="15%"><font size="2">John Davenport:</font></td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
              bank lines, we have a line of credit revolver which we use, and in
              fact
              it&#8217;s a $5 million line of credit. It is tied to receivables. So we only
              are allowed a certain portion of that to be able to be used. So we
              are
              trying to expand that.</font></td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="top" width="15%"><font size="2">(Phil Goldsmith):</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font></td>
            <td width="2%">&#160;</td>
            <td width="83%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">OK.
              All right. Just let me - in so far as your legacy business is concerned,
              how do you see that playing out over the next 12 months or
              so?</font></td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="top" width="15%"><font size="2">John Davenport:</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font></td>
            <td width="2%">&#160;</td>
            <td width="83%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
              said that we would see a further - we&#8217;re forecasting a 15 percent decline
              in the legacy business. We&#8217;re obviously trying to avoid that. We have some
              new products that we are introducing into that business and we have
              not
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              So
              I&#8217;m going to ask Eric to add a little bit more flavor, more specifics
              to
              that.</font></td>
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            <td width="83%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Thanks,
              John. Yes, what we&#8217;re trying to do here is come back at the channel that
              really, you know, kept that traditional business going strong and really
              reinvigorate it and we&#8217;ve done that. We now have three sales people who
              are actively, you know, engaging our manufacturing reps, both with
              EFO and
              the traditional product lines to make sure that we&#8217;re meeting the needs of
              the consumer, OK as well as the full business. And, you know, we are
              moving the EFO product line. As we said we expect it to finally take
              50
              percent of the total sales in 2008.</font></td>
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            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
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            <td width="83%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">But
              we don&#8217;t also want to turn away a customer who has a need and we can
              fulfill that need because we currently have the technology. So, you
              know,
              we&#8217;re working very aggressively back into those channels to continue to
              sell those products.</font></td>
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    <div>&#160;</div>
    <div>&#160;</div>
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        <div style="WIDTH: 100%; TEXT-ALIGN: center">
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        </div>
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      <div id="HDR">
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    <div>&#160;</div>
    <div>
      <table bgcolor="white" cellpadding="0" cellspacing="0" width="100%">

          <tr bgcolor="white">
            <td valign="top" width="15%"><font size="2">John Davenport:</font></td>
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            <td width="83%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Yes,
              we also have a new leader in our pool business who is aggressively
              pursuing sales. We are forecasting a continued decline, mainly because
              of
              the forecast that we&#8217;ve heard on the housing market in 2008.</font></td>
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          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
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            <td width="15%"><font size="2">(Phil Goldsmith):</font></td>
            <td width="2%">&#160;</td>
            <td width="83%">
              <div style="DISPLAY: block; MARGIN-LEFT: 90pt; TEXT-INDENT: -90pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Will
                your margins - do you expect the margins to decline as well on this
                segment?</font></div>
            </td>
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          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
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            <td width="15%"><font size="2">John Davenport:</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font></td>
            <td width="2%">&#160;</td>
            <td width="83%">
              <div style="DISPLAY: block; MARGIN-LEFT: 90pt; TEXT-INDENT: -90pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">No.
                We have resized that business so that the margins will increase and
                that&#8217;s
                an important element. We&#8217;re very, very much aware of that and, in fact,
                Eric has worked very hard in 2007 on this.</font></div>
            </td>
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            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
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            <td valign="top" width="15%"><font size="2">Eric Hilliard:</font></td>
            <td width="2%">&#160;</td>
            <td width="83%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Right.
                We had sized the business in 2007 preparing for this year and, you
                know,
                some of the one time and restructuring costs were associated with
                that,
                unfortunately, but we had to prepare last year as we knew the market
                trend
                was going to continue in these traditional lines.</font></div>
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            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
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            <td width="15%"><font size="2">John Davenport:</font></td>
            <td width="2%">&#160;</td>
            <td width="83%">
              <div style="DISPLAY: block; MARGIN-LEFT: 90pt; TEXT-INDENT: -90pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Yes,
                we&#8217;ve taken - it&#8217;s a number like a $0.5 million out of that business
                already.</font></div>
            </td>
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          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
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            <td width="15%"><font size="2">(Phil Goldsmith):</font></td>
            <td width="2%">&#160;</td>
            <td width="83%">
              <div style="DISPLAY: block; MARGIN-LEFT: 90pt; TEXT-INDENT: -90pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Right.
                So you did it through cost reduction, what about
                pricing?</font></div>
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          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
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            <td width="15%"><font size="2">Eric Hilliard:</font></td>
            <td width="2%">&#160;</td>
            <td width="83%">
              <div style="DISPLAY: block; MARGIN-LEFT: 90pt; TEXT-INDENT: -90pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Yes,
                not to openly talk about our pricing strategy on the phone but yes
                we have
                engaged our pricing strategy to help improve that as
                well.</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td width="15%"><font size="2">(Phil Goldsmith):</font></td>
            <td width="2%">&#160;</td>
            <td width="83%">
              <div style="DISPLAY: block; MARGIN-LEFT: 90pt; TEXT-INDENT: -90pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">OK.
                Thanks very much.</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td width="15%"><font size="2">Eric Hilliard:</font></td>
            <td width="2%">&#160;</td>
            <td width="83%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Thank
              you very much.</font></td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="top" width="15%"><font size="2">Operator:</font></td>
            <td width="2%">&#160;</td>
            <td width="83%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">And
                once again, if you would like to ask a question, press star then
                the
                number one on your telephone keypad at this time. You have a follow
                up
                question from (Brian Tanous) with Merriman, Curhan,
                Ford.</font></div>
            </td>
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          <tr bgcolor="white">
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      </table>
    </div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
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        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">20</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
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      </div>
      <div id="HDR">
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    </div>
    <div>&#160;</div>
    <div>
      <table bgcolor="white" cellpadding="0" cellspacing="0" width="100%">

          <tr bgcolor="white">
            <td width="15%"><font size="2">(Brian Tanous):</font></td>
            <td width="2%">&#160;</td>
            <td width="83%">
              <div style="DISPLAY: block; MARGIN-LEFT: 90pt; TEXT-INDENT: -90pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Yes.
                Could you discuss the gross margins for the fourth quarter of &#8216;07 and why
                they were down to those levels?</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td width="15%"><font size="2">John Davenport:</font></td>
            <td width="2%">&#160;</td>
            <td width="83%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Eric.</font></td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="top" width="15%"><font size="2">Eric Hilliard:</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font></td>
            <td width="2%">&#160;</td>
            <td width="83%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Yes,
                sure. The fourth quarter in &#8216;07 saw a lot of - as we were coming through
                2007 we had incurred some expenses as we were coming through on some
                of
                these structuring that we had thought were going to be restructuring
                expense and then we had to, you know, put those back into operating
                expenses. It was unforeseen as we were coming through the year. And
                it
                helped these one time efforts that we were coming through and one
                time
                charts were pushed through in the fourth quarter and it caused the
                fourth
                quarter to be skewed.</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td width="15%"><font size="2">John Davenport:</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font></td>
            <td width="2%">&#160;</td>
            <td width="83%">
              <div style="DISPLAY: block; MARGIN-LEFT: 90pt; TEXT-INDENT: -90pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">But
                we also had a significant reduction in sales and of course - in the
                fourth
                quarter year-over-year and that lower sales, of course, leads to
                lower
                margins.</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="top" width="15%"><font size="2">Eric Hilliard:</font></td>
            <td width="2%">&#160;</td>
            <td width="83%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Yes,
                and then finally we were launching the new LED product lines and
                we
                brought in some inventory and that took some hits as well as we were
                expensing some things coming through during a product launch. And
                unfortunately, again, it was like a one time punch. But as you look
                at the
                gross profits over the year, we have really, you know, moved about
                1.5
                percent off of where we were last year. And with such a reduction
                in the
                sales volume we had significant improvements in our overall yearly
                cost
                structure to allow us to maintain those percents of gross profit
                in the
                face of such a volume drop.</font></div>
            </td>
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          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td width="15%"><font size="2">John Davenport:</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font></td>
            <td width="2%">&#160;</td>
            <td width="83%">
              <div style="DISPLAY: block; MARGIN-LEFT: 90pt; TEXT-INDENT: -90pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Yes,
                we&#8217;re expecting to see significant improvement in gross margin in the
                first quarter.</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td width="15%"><font size="2">Eric Hilliard:</font></td>
            <td width="2%">&#160;</td>
            <td width="83%">
              <div style="DISPLAY: block; MARGIN-LEFT: 90pt; TEXT-INDENT: -90pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">But
                the work through 2007 helped us, and the year, with a volume drop
                in the
                sales of just a slight reduced gross profit. So there was a lot of
                work
                done there before we could do that.</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="top" width="15%"><font size="2">(Brian Tanous):</font></td>
            <td width="2%">&#160;</td>
            <td width="83%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">OK.
                There&#8217;s a lot of moving parts here on this gross margin issue and the
                overhead absorption and the one time charges in fourth quarter and
                then
                the increasing mix here on EFO in &#8216;08 declining pool sales. Can you
                quantify at all for us how we should think about gross margins as
                they
                move through fiscal &#8216;08?</font></div>
            </td>
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          <tr bgcolor="white">
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      </table>
    </div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
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      </div>
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      </div>
      <div id="HDR">
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      </div>
    </div>
    <div>&#160;</div>
    <div>
      <table bgcolor="white" cellpadding="0" cellspacing="0" width="100%">

          <tr bgcolor="white">
            <td valign="top" width="15%"><font size="2">Eric Hilliard:</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font></td>
            <td width="2%">&#160;</td>
            <td width="83%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Yes,
                in 2008 as we come through this year and each quarter by quarter,
                first
                let me say we are going to see much improved gross profit. And it&#8217;s
                because we&#8217;ve - again, we&#8217;ve sized the business drive. We&#8217;ve done a lot of
                good things in reducing cost and gaining good efficiencies. We recognize
                some of these one time hits that occurred in 2007. And we do not
                foresee
                those things coming through 2008. So when we look at running the
                business
                we are seeing that. And actually we are seeing that as we review
                our
                numbers to date as we come through this quarter that it is much
                improved.</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="top" width="15%"><font size="2">(Brian Tenov):</font></td>
            <td width="2%">&#160;</td>
            <td width="83%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">OK,
                excellent. Can you talk a little bit about the solar cell activity
                with
                the DOD? Can you qualitatively describe what exactly you&#8217;re doing there?
                And then also could you comment on the $1 million contract? How far
                through that are you and where does that show up? Is it an offset
                to
                R&amp;D or is that in the revenue line?</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
          </tr>
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            <td valign="top" width="15%"><font size="2">John Davenport:</font></td>
            <td width="2%">&#160;</td>
            <td width="83%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Well,
              let me start out by saying a little bit about the solar work, OK? The
              - we
              are playing a very significant role in the (VHESC) program. We&#8217;re
              responsible for the optical development, and we&#8217;re leading that - leading
              that effort. The optics really are what make the (VHESC) approach
              different from all the others. We&#8217;re actually splitting the light spectrum
              into three or more elements where we have a low energy, a medium energy,
              and a high energy portion of the spectrum to do that
              efficiently.</font></td>
          </tr>
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            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
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            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">And
              those optical elements then are directed toward devices that are more
              efficient in those regions of the spectrum. And in fact there are device
              technologies, indium gallium nitride, for example, is one of them that
              is
              more efficient at high energies and there are other materials that
              are
              more efficient in the other regions.</font></td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
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            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">To
              take advantage of that, you have to have very efficient optics, and
              in
              fact our target optical efficiencies are well over 90 percent. That&#8217;s
              nothing like what&#8217;s been achieved, for example, in concentrator
              technology. That&#8217;s - so, that&#8217;s the role that we&#8217;re playing. We&#8217;re also -
              we&#8217;re also responsible for developing - an ongoing series of prototypes
              that take us through this program.</font></td>
          </tr>
          <tr bgcolor="white">
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            <td width="83%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
              goal of the program is to create a manufacturable system with a target
              efficiency of 50 percent - which is terrific. We expect to participate
              in
              developing a series of products, probably tied to our efficient lighting,
              which will take advantage of this. So, EFO optical technology makes
              this
              approach - I&#8217;ll call it EFO solar, really exciting for us.</font></td>
          </tr>
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            <td width="2%">&#160;</td>
            <td width="83%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Now,
              from the point of view of how we&#8217;re booking that, and I&#8217;m going to - I&#8217;m
              going to let Eric talk a little bit about that.</font></td>
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          <tr bgcolor="white">
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            <td width="2%">&#160;</td>
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            <td valign="top" width="15%"><font size="2">Eric Hilliard:</font></td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">OK,
              John, thanks. Yes, (Brian), we&#8217;re looking at as the total solar contract
              being able to recognize somewhere in the neighborhood of around 35
              percent
              of it in the coming year.</font></td>
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            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
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          <tr bgcolor="white">
            <td valign="top" width="15%"><font size="2">(Brian Tanous):</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font></td>
            <td width="2%">&#160;</td>
            <td width="83%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">OK.
              Was some of it recognized in &#8216;07?</font></td>
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          <tr bgcolor="white">
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            <td width="2%">&#160;</td>
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          <tr bgcolor="white">
            <td valign="top" width="15%"><font size="2">Eric Hilliard:</font></td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
              had a separate contract in &#8216;07 in the first quarter. It was phase one.
              This is - the million dollars we&#8217;re talking about is the phase two
              program.</font></td>
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          <tr bgcolor="white">
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            <td width="2%">&#160;</td>
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          <tr bgcolor="white">
            <td valign="top" width="15%"><font size="2">(Brian Tanous):</font></td>
            <td width="2%">&#160;</td>
            <td width="83%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">OK.
              OK. So, just to paraphrase real quickly, you are essentially developing
              the optics portion to enhance the conversion of light energy into
              electrical energy on, for example, gallium nitride, solar cell, or
              other
              type of (triple junction) solar cell. So, you&#8217;re actually not working on
              the solar cell itself, but enhancing the light (hitting) that
              cell.</font></td>
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            <td valign="top" width="15%"><font size="2">John Davenport:</font></td>
            <td width="2%">&#160;</td>
            <td width="83%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Right.
              The device technology belongs to other partners who are providing the
              actual chip technology. The optical technology is our role.</font></td>
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            <td valign="top" width="15%"><font size="2">(Brian Tanous):</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font></td>
            <td width="2%">&#160;</td>
            <td width="83%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">OK,
              fantastic. Just a couple more quick questions - can you elaborate a
              little
              bit more on the developments with the military? Have you gotten some
              feedback from the three ships that are at sea and what&#8217;s the optimistic
              scenario that could play out in terms of some reoccurring revenue streams
              coming from these systems you&#8217;ve put on the ships?</font></td>
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            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
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          <tr bgcolor="white">
            <td valign="top" width="15%"><font size="2">John Davenport:</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font></td>
            <td width="2%">&#160;</td>
            <td width="83%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Yes,
              we&#8217;re getting very positive feedback from the systems onboard ships, and
              in fact, a portion of the sales that we&#8217;re forecasting for EFO will be
              military sales - actual military sales onboard ships. We are also,
              interestingly enough, being asked by the military - by the government
              to
              place EFO in other locations. We&#8217;ve done a commissary, for example,
              recently. That&#8217;s a supermarket for the military, if you will. And there
              are other locations on bases where we&#8217;re placing products. So, we expect
              to see a real military business emerging in 2008.</font></td>
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            <td width="2%">&#160;</td>
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          <tr bgcolor="white">
            <td valign="top" width="15%"><font size="2">(Brian Tanous):</font></td>
            <td width="2%">&#160;</td>
            <td width="83%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">OK,
              and then the last question - regarding the new large U.S. retailer
              that
              you&#8217;re targeting with 200-plus stores, can you give us the status of that
              now? Have you demonstrated a system to them? Are you bidding and quoting
              on various stores?</font></td>
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          <tr bgcolor="white">
            <td valign="top" width="15%"><font size="2">John Davenport:</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font></td>
            <td width="2%">&#160;</td>
            <td width="83%"><font size="2">The answer is yes.</font></td>
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          <tr bgcolor="white">
            <td valign="top" width="15%"><font size="2">(Brian Tanous):</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font></td>
            <td width="2%">&#160;</td>
            <td width="83%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">OK.</font></td>
          </tr>
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            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
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            <td valign="top" width="15%"><font size="2">John Davenport:</font></td>
            <td width="2%">&#160;</td>
            <td width="83%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
              have not only demonstrated, but more importantly, we&#8217;ve been approved -
              our product meets the spec. That is - I can&#8217;t tell you how important that
              is. That&#8217;s - we are now at the point of moving this towards a commercial
              opportunity. Getting to be on the spec for this retailer was the big,
              big
              hurdle.</font></td>
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            <td width="2%">&#160;</td>
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            <td valign="top" width="15%"><font size="2">(Brian Tanous):</font></td>
            <td width="2%">&#160;</td>
            <td width="83%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Has
              the retailer discussed a large renovation project so that you really
              have
              a good number of stores in the pipeline potentially? Or is that the
              next
              step?</font></td>
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          <tr bgcolor="white">
            <td valign="top" width="15%"><font size="2">John Davenport:</font></td>
            <td width="2%">&#160;</td>
            <td width="83%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Yes,
              this - yes, this is a plan - the retailer plans to renovate these stores
              and has a definite objective, and is going to - is going to put someone&#8217;s
              product in those stores.</font></td>
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            <td valign="top" width="15%"><font size="2">(Brian Tanous):</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font></td>
            <td width="2%">&#160;</td>
            <td width="83%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Great.
              Thank you very much.</font></td>
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            <td valign="top" width="15%"><font size="2">Operator:</font></td>
            <td width="2%">&#160;</td>
            <td width="83%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Your
              next question comes from (Walter Schenker) with Titan
              Capital.</font></td>
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            <td valign="top" width="15%"><font size="2">(Walter Schenker):</font></td>
            <td width="2%">&#160;</td>
            <td width="83%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Thank
              you. Having listened to conference calls I guess now for about five
              years,
              it&#8217;s still unclear whether the problem is that the technology is no good
              or the organization is having problems penetrating accounts. I mean
              are we
              yet in all the regions in Whole Foods?</font></td>
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            <td valign="top" width="15%"><font size="2">John Davenport:</font></td>
            <td width="2%">&#160;</td>
            <td width="83%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">I&#8217;ll
              answer the second question first, and the answer is we are not yet
              in all
              of the Whole Foods regions. We just picked a new region. And so, we
              are
              continuing to expand.</font></td>
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            <td width="2%">&#160;</td>
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            <td width="2%">&#160;</td>
            <td width="83%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Let&#8217;s
              talk about these five years. What has this been about? The first phase
              -
              and you asked does the technology work? The first phase, the thing
              that
              was really important - is the EFO concept viable from a technological
              point of view? We have demonstrated that (it is viable). In the first
              year
              or so, really that was what it was all about. Does this thing work?
              Is it
              energy efficient? Does it make light comparable to light people would
              use?</font></td>
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            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
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            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
              second phase, which has been the last couple of years, is will anybody
              actually buy this material? Is there a viable market out there for
              this
              product? We now have multiple customers. They&#8217;re repeat customers. If you
              interview these customers, they say they love this product. So, I believe
              that there is a significant market for this product, and we&#8217;ve talked in
              the past about - you know, about how sizeable that is, and it is very
              sizeable.</font></td>
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            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
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            <td width="2%">&#160;</td>
            <td width="83%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">This
              phase, what we&#8217;re trying to do now, is to - is to achieve scalability, to
              actually get this product into channels. And that&#8217;s why we&#8217;ve been talking
              - why we&#8217;ve been trying to expand our efforts. Going in and just going
              for, say, large plays - that&#8217;s a good thing to do and we&#8217;ve got some great
              people working on it, but it takes time to get those to work. We are
              multiplying these efforts without multiplying the dollars by creating
              new
              channels. For example, the TCP channel and the Eco-Engineering channel
              that we&#8217;ve opened up, as well as the military, those we can do very
              cost-effectively, and we are working yet on another channel
              opportunity.</font></td>
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            <td width="83%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">That&#8217;s
              really the challenge for 2008 and beyond. We have now crossed 50 percent
              of the business - EFO business. We&#8217;ve gone in those five years from
              basically a pool and specialty lighting business with an energy-efficient
              idea to a business in 2008 which is principally an energy-efficient
              lighting business. So, there has been things happening and I believe
              we&#8217;re
              going to see significant growth at EFO, as we&#8217;ve said, 2008, and it&#8217;s
              going to continue to grow significantly beyond that.</font></td>
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          <tr bgcolor="white">
            <td valign="top" width="15%"><font size="2">(Walter Schenker):</font></td>
            <td width="2%">&#160;</td>
            <td width="83%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Aren&#8217;t
              we - I mean, again, I obviously have a lot of frustration and the market
              has frustration, you people probably have some of the frustration,
              but
              we&#8217;re in supermarkets who are using it which have tens of thousands of
              units in total, ((inaudible)) Albertson&#8217;s and everybody else, we are in -
              we did a couple of buildings with (Gensler). Is that a correct
              statement?</font></td>
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            <td valign="top" width="15%"><font size="2">John Davenport:</font></td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
              did a couple of installations - yes. We have actually done two - I
              think
              maybe the buildings you&#8217;re thinking about are the &#8220;W&#8221; Hotel, which is part
              of a Starwood chain, that&#8217;s a big deal. And we are pursuing - we are
              pursuing Starwood. Starwood is very interested in what we&#8217;re
              doing.</font></td>
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            <td width="2%">&#160;</td>
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            <td valign="top" width="15%"><font size="2">(Walter Schenker):</font></td>
            <td width="2%">&#160;</td>
            <td width="83%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">But
              if in fact the supermarkets which have it in like it, if Starwood likes
              it
              as opposed to if Limited likes it, if people who have very large numbers
              of units like it, if we have in fact not just the down light, but the
              loading docks, the freezer cases, and all of the newer products, it&#8217;s hard
              to understand why the opportunity is adding 200 - which is nice - a
              renovation which might have 200 stores, instead of adding another thousand
              stores at Albertsons.</font></td>
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          <tr bgcolor="white">
            <td valign="top" width="15%"><font size="2">John Davenport:</font></td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Well,
              we&#8217;re giving you an example that&#8217;s concrete that we can give you. It isn&#8217;t
              that we are not working on other things - we just really don&#8217;t want to
              disclose at this moment.</font></td>
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          <tr bgcolor="white">
            <td valign="top" width="15%"><font size="2">(Walter Schenker):</font></td>
            <td width="2%">&#160;</td>
            <td width="83%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">OK.
              And lastly, just to voice the last frustration, which is the achievement
              of getting EFO to more than 50 percent is as much a function of collapsing
              - maybe not our fault - the traditional business which has managed
              to lose
              much more money than anyone I think ever thought two - three years
              ago as
              it is to grow EFO. I mean if the pool business was back where it was
              three
              - four years ago, we wouldn&#8217;t be 50 percent of it.</font></td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
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            <td valign="top" width="15%"><font size="2">John Davenport:</font></td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">That&#8217;s
              true.</font></td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
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          <tr bgcolor="white">
            <td valign="top" width="15%"><font size="2">(Walter Schenker):</font></td>
            <td width="2%">&#160;</td>
            <td width="83%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">I
              end my frustration. I mean &#8230;</font></td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
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          <tr bgcolor="white">
            <td valign="top" width="15%"><font size="2">John Davenport:</font></td>
            <td width="2%">&#160;</td>
            <td width="83%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Nevertheless,
              we&#8217;ve gone - in those five years, we&#8217;ve gone from a half-a-million in
              sales to 7 million in sales, and we&#8217;re predicting that that number will
              double in 2008. So, even if you strip away - you know, sometimes I
              feel
              exactly the same way you do. Sometimes I think maybe the best way to
              have
              done this is as a &#8220;green field&#8221;, and then we wouldn&#8217;t be talking about the
              traditional business. I have a frustration because of the collapse
              of the
              housing market, for example, and in the - basically the erosion of
              that -
              of that business.</font></td>
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          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
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          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">But
              &#8220;it is what it is&#8221;, and there - this kernel is emerging from our
              traditional business. And in 2008, our business is an energy-efficient
              lighting business by all the measures.</font></td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
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          <tr bgcolor="white">
            <td valign="top" width="15%"><font size="2">(Walter Schenker):</font></td>
            <td width="2%">&#160;</td>
            <td width="83%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Yet
              with $14 million of EFO business and with reduced cost and shrunk expenses
              on the traditional pool business, the company still anticipates it&#8217;s going
              to burn through $5 million of cash. So, we are still a long way from
              being
              profitable of cash flow positive on an annual basis. I realize you
              may
              come out of the year in a different way.</font></td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
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      </table>
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    <div>
      <table bgcolor="white" cellpadding="0" cellspacing="0" width="100%">

          <tr bgcolor="white">
            <td valign="top" width="15%"><font size="2">John Davenport:</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font></td>
            <td width="2%">&#160;</td>
            <td width="83%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">That&#8217;s
              correct, and it&#8217;s only because we are continuing - the primary reason for
              that is we are continuing to invest in this technology. We see - we&#8217;re
              seeing the fruits of that this year. We spent more in 2007 than we
              did in
              2006 on R&amp;D. The fruits of that were a whole series of new products
              that are doing well. We see a need to continue to fill that product
              stream
              in 2008. We could close our eyes and say, &#8220;No, we&#8217;re not going to do
              that,&#8221; and turn this thing back. But we&#8217;re a technology company at this
              point, and we need to have the growth engine, which is really the
              technology turned into products, working for us. That&#8217;s really the
              thinking here.</font></td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="top" width="15%"><font size="2">Eric Hilliard:</font></td>
            <td width="2%">&#160;</td>
            <td width="83%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Yes,
              (Walter), if I could add something to what John was saying, I think,
              too,
              and I&#8217;ve been here over a year now, and I think, too, watching and
              understanding a little bit of the history and then living through the
              last
              year, that this company&#8217;s come a long way in learning more and more about
              coming to market with this technology. And we have gotten even more
              customer feedback, and it&#8217;s enabling us to continue the traction and then
              further it. And one of those is these two alliances. We now have alliances
              that open up further distribution channels and further customer bases
              with
              us and partners with us to help get the product out there, to help
              educate
              the people out there about this technology so that it does further
              itself
              through this year.</font></td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
              showroom coming online is going to certainly do that for architects
              and
              designers and specifiers being able to see these applications and see
              how
              aesthetically pleasing it is, and then really understand the true energy
              significance of it. And I think that, as we have learned how to bring
              this
              product to market, we have gotten better at it, and we will continue
              to
              get better at it, and it will help grow it.</font></td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="top" width="15%"><font size="2">(Walter Schenker):</font></td>
            <td width="2%">&#160;</td>
            <td width="83%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">But
              if you&#8217;re in fact - you had me done and now I have one more. I promise
              this is the last one. If, in fact, we are a technology company, why
              aren&#8217;t
              we in fact a technology company who develops technology and then licenses
              it to people who have in place - Philips, GE - pick your name - the
              distribution, the marketing clout, the ability to go to market across
              the
              full spectrum (or crown) the world, to then try and take this technology
              and create a very large revenue stream from it. And even if we only
              get
              royalties of it, which is what many technology companies do, why isn&#8217;t
              that a more appropriate way, then, to go to market?</font></td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
          </tr>

      </table>
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    <div>
      <table bgcolor="white" cellpadding="0" cellspacing="0" width="100%">

          <tr bgcolor="white">
            <td valign="top" width="15%"><font size="2">John Davenport:</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font></td>
            <td width="2%">&#160;</td>
            <td width="83%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Let
              me just try this. I used to work for GE, as many of you know. And in
              fact,
              I used to evaluate some of these opportunities. What got GE&#8217;s attention
              were business opportunities with sales levels that started to make
              inroads
              into markets they were interested in, technologies that actually had
              demonstrated market viability; not only a technical idea, but market
              viability. That&#8217;s kind of phase two.</font></td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">I
              believe that we are at that level and I believe that we have attracted
              some attention, and in fact, there may be opportunity in 2008 and beyond,
              pursuing exactly the kind of things that you&#8217;re talking about. Our
              movement with TCP is a great example. Why is TCP interested in us?
              Because
              we are a technology company and we can offer them solutions for their
              customers that they can&#8217;t really get by themselves or elsewhere. That&#8217;s
              why they&#8217;re interested in us. They&#8217;re the world&#8217;s leader in compact
              fluorescent lights.</font></td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Why
              on earth are they interested in us? Because CFLs, while they&#8217;re great - a
              great product for them now, aren&#8217;t going to last forever. They need to
              form alliances with companies that can provide products for the future.
              So, that&#8217;s an example. It&#8217;s not the only example that we&#8217;re working on,
              but that example is real and we&#8217;re beginning to get revenues from
              it.</font></td>
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          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="top" width="15%"><font size="2">(Walter Schenker):</font></td>
            <td width="2%">&#160;</td>
            <td width="83%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Thank
              you.</font></td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="top" width="15%"><font size="2">John Davenport:</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font></td>
            <td width="2%">&#160;</td>
            <td width="83%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Thank
              you.</font></td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="top" width="15%"><font size="2">Operator:</font></td>
            <td width="2%">&#160;</td>
            <td width="83%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">You
              have a follow-up question from (Robert Smith) with Center for Performance
              Investing.</font></td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
          </tr>

      </table>
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          <tr bgcolor="white">
            <td valign="top" width="15%"><font size="2">(Robert Smith):</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font></td>
            <td width="2%">&#160;</td>
            <td width="83%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Yes,
              hi. You made a comment during the introductory remarks about cash flow
              positive. What was that?</font></td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="top" width="15%"><font size="2">John Davenport:</font></td>
            <td width="2%">&#160;</td>
            <td width="83%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We&#8217;re
              talking about positioning ourselves in 2009 to be cash flow
              positive.</font></td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="top" width="15%"><font size="2">(Robert Smith):</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font></td>
            <td width="2%">&#160;</td>
            <td width="83%"><font size="2">2009 - got it.</font></td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="top" width="15%"><font size="2">John Davenport:</font></td>
            <td width="2%">&#160;</td>
            <td width="83%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2009
              - that&#8217;s what &#8230;</font></td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="top" width="15%"><font size="2">(Robert Smith):</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font></td>
            <td width="2%">&#160;</td>
            <td width="83%"><font size="2">And that&#8217;s the year as a whole?</font></td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="top" width="15%"><font size="2">John Davenport:</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font></td>
            <td width="2%">&#160;</td>
            <td width="83%"><font size="2">That&#8217;s for the year as a whole.</font></td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="top" width="15%"><font size="2">(Robert Smith):</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font></td>
            <td width="2%">&#160;</td>
            <td width="83%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">So,
              again, just - I just want to go over this landscape again with the
              national accounts. What is - what is the difficulty in not approaching,
              but getting a national account more interested? I mean for example,
              say,
              Whole Foods, when the question about the regional ((inaudible))
              &#8230;</font></td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="top" width="15%"><font size="2">John Davenport:</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font></td>
            <td width="2%">&#160;</td>
            <td width="83%"><font size="2">Well, it&#8217;s very &#8230;</font></td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="top" width="15%"><font size="2">(Robert Smith):</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8230;
              </font></td>
            <td width="2%">&#160;</td>
            <td width="83%"><font size="2">yes, go ahead.</font></td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="top" width="15%"><font size="2">John Davenport:</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font></td>
            <td width="2%">&#160;</td>
            <td width="83%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Whole
              Foods, you have to think of them as 12 different companies. It&#8217;s really
              the best way to think of that.</font></td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="top" width="15%"><font size="2">(Robert Smith):</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font></td>
            <td width="2%">&#160;</td>
            <td width="83%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">I
              understand that, John.</font></td>
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          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="top" width="15%"><font size="2">John Davenport:</font></td>
            <td width="2%">&#160;</td>
            <td width="83%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">So,
              one region doesn&#8217;t take the word of the other guy. So, you have to go
              through pretty much the same process. Let&#8217;s talk about - a little bit
              about the Limited, where we had a real competitor, several real
              competitors and in fact that process, I think, is illustrative of what
              you
              have to go to secure a national account. Now, here, the decision for
              The
              Limited, are made in one location, its not regional and so, it really
              is,
              probably, a better example. First of all, they were interested in solving
              a problem. We had a lot of great technology. They weren&#8217;t interested in
              our great technology because they&#8217;re interested in solving their issues
              and they had a very specific problem. They were having their fluorescent
              lighting just burning out on them. It was a maintenance nightmare for
              these guys and they needed a solution. Now that solution also had to
              save
              energy and so forth, so we demonstrated that solution. We were very
              responsive. We actually developed a product version that was specific
              for
              these folks, so we did some tooling and so forth. We put it into a
              store.
              We demonstrated the actual performance. They brought in all of their
              designers - all of this takes time, all of their designers and so forth
              and we are, basically, spec&#8217;d into that application. That&#8217;s the process
              you go through.</font></td>
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        <div id="GLHDR" style="WIDTH: 100%" align="right">&#160;</div>
      </div>
    </div>
    <div>&#160;</div>
    <div>
      <table bgcolor="white" cellpadding="0" cellspacing="0" width="100%">

          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
                thing that&#8217;s different is that we are not na&#239;ve. We have great product but
                we&#8217;re not sitting here thinking the world is going to beat a path to
                get
                this product from us. These folks have problems that they&#8217;ve got to solve,
                during the day.</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="top" width="15%"><font size="2">(Robert Smith):</font></td>
            <td width="2%">&#160;</td>
            <td width="83%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Yes
              and I was more directing this to supermarket field and we were waiting
              for
              these &#8230;</font></td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="top" width="15%"><font size="2">John Davenport:</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font></td>
            <td width="2%">&#160;</td>
            <td width="83%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Why
              don&#8217;t you talk a little bit about supermarket, Eric, in 2008 and their
              growth?</font></td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="top" width="15%"><font size="2">Eric Hilliard:</font></td>
            <td width="2%">&#160;</td>
            <td width="83%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">OK.
              We&#8217;ll speak to the Whole Foods, I know you&#8217;d mentioned. OK, so we
              continue, continue, continue selling to Whole Foods. In fact, we sold
              in
              some more this month and we got a new region, in the United States,
              for
              Whole Foods and we expect to continue our process with Whole Foods,
              you
              know &#8230;</font></td>
          </tr>
          <tr bgcolor="white">
            <td width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="top" width="15%"><font size="2">(Robert Smith):</font></td>
            <td width="2%">&#160;</td>
            <td width="83%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">But
              Eric, it&#8217;s hard to believe that the tipping point won&#8217;t be reached within
              the Whole Foods organization, where everyone who is not participating,
              just sits up and says, hey, this is the way to go.</font></td>
          </tr>
          <tr bgcolor="white">
            <td valign="top" width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="top" width="15%"><font size="2">Eric Hilliard:</font></td>
            <td width="2%">&#160;</td>
            <td width="83%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">You&#8217;re
              referring to the corporate headquarters.</font></td>
          </tr>
          <tr bgcolor="white">
            <td valign="top" width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="top" width="15%"><font size="2">(Robert Smith):</font></td>
            <td width="2%">&#160;</td>
            <td width="83%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Well,
              whatever. I mean &#8230;</font></td>
          </tr>
          <tr bgcolor="white">
            <td valign="top" width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
          </tr>

      </table>
    </div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">&#160;</div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">31</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">&#160;</div>
      </div>
    </div>
    <div>&#160;</div>
    <div>
      <table bgcolor="white" cellpadding="0" cellspacing="0" width="100%">

          <tr bgcolor="white">
            <td valign="top" width="15%"><font size="2">Eric Hilliard:</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font></td>
            <td width="2%">&#160;</td>
            <td width="83%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">What
              we&#8217;re &#8230;</font></td>
          </tr>
          <tr bgcolor="white">
            <td valign="top" width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="top" width="15%"><font size="2">(Robert Smith):</font></td>
            <td width="2%">&#160;</td>
            <td width="83%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">someone
              has oversight.</font></td>
          </tr>
          <tr bgcolor="white">
            <td valign="top" width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="top" width="15%"><font size="2">Eric Hilliard:</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font></td>
            <td width="2%">&#160;</td>
            <td width="83%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">What
              we&#8217;re saying here is that it&#8217;s regionalized buying; its regionalized
              decision making. It isn&#8217;t - its autonomous at those levels and though
              people set up and they talked about best practices, at those things,
              with
              the whole - with this kind of organization, its still these people
              having
              to manage their own capital, their own capital investments and weighing
              those out with the returns on those investments, as well as, we have
              to
              work through winning the business at each region, every time. Its not
              centralized and I think that&#8217;s what (John&#8217;s) point was, in some segments
              it is a centralized decision and others, it is not and what I was
              referring to about the landscape of these grocery stores when we refer
              to
              - you had mentioned freezer cases earlier, is that what you get through
              the energy story and the return on that you look at the landscape of
              a
              freezer case and there are integrated modules (of) systems, so when
              we
              step back and look at the approach that there are two ways you can
              go
              through the OEM, which brings the integrated system together or the
              regional supermarkets, which have, you know, a significant, still,
              amount
              of storage regionally but we&#8217;ll still have to go through the same Whole
              Foods concept of winning each region because of the landscape of this
              competitive distribution channels.</font></td>
          </tr>
          <tr bgcolor="white">
            <td valign="top" width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="top" width="15%"><font size="2">(Robert Smith):</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font></td>
            <td width="2%">&#160;</td>
            <td width="83%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Yes
              but &#8230;</font></td>
          </tr>
          <tr bgcolor="white">
            <td valign="top" width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="top" width="15%"><font size="2">Eric Hilliard:</font></td>
            <td width="2%">&#160;</td>
            <td width="83%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">And
              so that what&#8217;s I&#8217;m saying. I think that we&#8217;re at the right level. I think
              we&#8217;re at the right strategy, in the regional base and winning them, as
              we
              are winning them because it does continue, once you&#8217;re in that region and
              they expand, you&#8217;re with them and that&#8217;s a great win for us because once
              you&#8217;re there, you&#8217;re there and once you&#8217;ve proven out, which we have, they
              keep buying that technology and better, they allow us to expand, within
              those stores, with our new product introductions and our (diffing)
              products where those applications go, so Whole Foods is another great
              example where we started with one and we&#8217;ve expanded in other departments
              and the per store order has grown considerably since we went down this
              path, which allows us to go back in that channel, into each of those
              regions and widen the sales line.</font></td>
          </tr>
          <tr bgcolor="white">
            <td valign="top" width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
          </tr>

      </table>
    </div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">&#160;</div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">32</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">&#160;</div>
      </div>
    </div>
    <div>&#160;</div>
    <div>
      <table bgcolor="white" cellpadding="0" cellspacing="0" width="100%">

          <tr bgcolor="white">
            <td valign="top" width="15%"><font size="2">(Robert Smith):</font></td>
            <td width="2%">&#160;</td>
            <td width="83%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Yes
              and &#8230;</font></td>
          </tr>
          <tr bgcolor="white">
            <td valign="top" width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="top" width="15%"><font size="2">John Davenport:</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font></td>
            <td width="2%">&#160;</td>
            <td width="83%"><font size="2">How about a Safeway, so to
              speak?</font></td>
          </tr>
          <tr bgcolor="white">
            <td valign="top" width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="top" width="15%"><font size="2">Eric Hilliard:</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font></td>
            <td width="2%">&#160;</td>
            <td width="83%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Well,
              let me give you another example - we talked about Wal-Mart
              Mexico.</font></td>
          </tr>
          <tr bgcolor="white">
            <td valign="top" width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="top" width="15%"><font size="2">(Robert Smith):</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font></td>
            <td width="2%">&#160;</td>
            <td width="83%"><font size="2">Yes.</font></td>
          </tr>
          <tr bgcolor="white">
            <td valign="top" width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="top" width="15%"><font size="2">John Davenport:</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font></td>
            <td width="2%">&#160;</td>
            <td width="83%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">And
              that&#8217;s a great example. We are now into four - we have four installations
              in Mexico and Wal-Mart is planning on building a number, like 24, such
              locations. I think, maybe, there are two installations per location.
              That&#8217;s a real opportunity for us. I don&#8217;t see why we&#8217;re not going to wind
              up in all of those. That&#8217;s our goal. So far, when they&#8217;re building these
              things, we&#8217;re winding up specified into those things and &#8230;</font></td>
          </tr>
          <tr bgcolor="white">
            <td valign="top" width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="top" width="15%"><font size="2">(Robert Smith):</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font></td>
            <td width="2%">&#160;</td>
            <td width="83%"><font size="2">Are you still alive in the Wal-Mart
              domestic
              runoff, so to speak, on - you said you were &#8230;</font></td>
          </tr>
          <tr bgcolor="white">
            <td valign="top" width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="top" width="15%"><font size="2">John Davenport:</font></td>
            <td width="2%">&#160;</td>
            <td width="83%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Yes,
              we are still alive.</font></td>
          </tr>
          <tr bgcolor="white">
            <td valign="top" width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="top" width="15%"><font size="2">(Robert Smith):</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font></td>
            <td width="2%">&#160;</td>
            <td width="83%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">All
              right, thank you, good luck.</font></td>
          </tr>
          <tr bgcolor="white">
            <td valign="top" width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="top" width="15%"><font size="2">John Davenport:</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font></td>
            <td width="2%">&#160;</td>
            <td width="83%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Thank
              you very much.</font></td>
          </tr>
          <tr bgcolor="white">
            <td valign="top" width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="top" width="15%"><font size="2">Operator:</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font></td>
            <td width="2%">&#160;</td>
            <td width="83%">
              <div style="DISPLAY: block; MARGIN-LEFT: 90pt; TEXT-INDENT: -90pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Your
                next question comes from (Ryan Kilzy) with (Marathon)
                Partners.</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td valign="top" width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="top" width="15%"><font size="2">John Davenport:</font></td>
            <td width="2%">&#160;</td>
            <td width="83%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Hi
              (Ryan). This&#8217;ll be the last question since we&#8217;re now headed into the
              hour.</font></td>
          </tr>
          <tr bgcolor="white">
            <td valign="top" width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
          </tr>

      </table>
    </div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">&#160;</div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">33</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">&#160;</div>
      </div>
    </div>
    <div>&#160;</div>
    <div>
      <table bgcolor="white" cellpadding="0" cellspacing="0" width="100%">

          <tr bgcolor="white">
            <td valign="top" width="15%"><font size="2">(Ryan Kilzy):</font></td>
            <td width="2%">&#160;</td>
            <td width="83%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">It&#8217;s
              a quick one, so that&#8217;s perfect. Just - I think I missed, in the beginning,
              I dialed in a bit late did you guys give a fourth quarter EFO sales
              number
              and what&#8217;s the year-over-year growth in that with the
              reclassification?</font></td>
          </tr>
          <tr bgcolor="white">
            <td valign="top" width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="top" width="15%"><font size="2">John Davenport:</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font></td>
            <td width="2%">&#160;</td>
            <td width="83%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Yes,
              we did, in fact, give a fourth quarter EFO number. The EFO number for
              Q4
              was $2 million. It was $7 million for the year versus 5.3 with the
              reclassification or a 32 percent improvement with the reclassification
              over 2006.</font></td>
          </tr>
          <tr bgcolor="white">
            <td valign="top" width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="top" width="15%"><font size="2">(Ryan Kilzy):</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font></td>
            <td width="2%">&#160;</td>
            <td width="83%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">And
              that&#8217;s - what was it for fourth quarter of &#8216;06? What was the growth
              year-over-year, for the quarter?</font></td>
          </tr>
          <tr bgcolor="white">
            <td valign="top" width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="top" width="15%"><font size="2">John Davenport:</font></td>
            <td width="2%">&#160;</td>
            <td width="83%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Fourth
              quarter &#8216;06 was about - yes, about 750,000 or some number like that with
              the classification.</font></td>
          </tr>
          <tr bgcolor="white">
            <td valign="top" width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="top" width="15%"><font size="2">(Ryan Kilzy):</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font></td>
            <td width="2%">&#160;</td>
            <td width="83%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">OK.
              All right, thanks a lot.</font></td>
          </tr>
          <tr bgcolor="white">
            <td valign="top" width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="top" width="15%"><font size="2">John Davenport:</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font></td>
            <td width="2%">&#160;</td>
            <td width="83%"><font size="2">Thank you.</font></td>
          </tr>
          <tr bgcolor="white">
            <td valign="top" width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="top" width="15%"><font size="2">Operator:</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font></td>
            <td width="2%">&#160;</td>
            <td width="83%"><font size="2">((inaudible))</font></td>
          </tr>
          <tr bgcolor="white">
            <td valign="top" width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td valign="top" width="15%"><font size="2">John Davenport:</font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font></td>
            <td width="2%">&#160;</td>
            <td width="83%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Thank
              you and I wanted to thank everyone for their participation in the call
              and
              I look forward to discussing Q1 with you in a few weeks, in
              April.</font></td>
          </tr>
          <tr bgcolor="white">
            <td valign="top" width="15%">&#160;</td>
            <td width="2%">&#160;</td>
            <td width="83%">&#160;</td>
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