<SUBMISSION>
<ACCESSION-NUMBER>0000910680-07-001131
<TYPE>8-K
<PUBLIC-DOCUMENT-COUNT>4
<PERIOD>20071205
<ITEMS>8.01
<ITEMS>9.01
<FILING-DATE>20071205
<DATE-OF-FILING-DATE-CHANGE>20071205
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>JACLYN INC
<CIK>0000052969
<ASSIGNED-SIC>3100
<IRS-NUMBER>221432053
<STATE-OF-INCORPORATION>DE
<FISCAL-YEAR-END>0630
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>8-K
<ACT>34
<FILE-NUMBER>001-05863
<FILM-NUMBER>071287503
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>197 WEST SPRING VALLEY AVENUE
<CITY>MAYWOOD
<STATE>NJ
<ZIP>07607
<PHONE>201-909-6000
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>197 WEST SPRING VALLEY AVENUE
<CITY>MAYWOOD
<STATE>NJ
<ZIP>07607
</MAIL-ADDRESS>
</FILER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>f8k120507.htm
<DESCRIPTION>CURRENT REPORT
<TEXT>
<html>
    <head>
        <title></title>
    </head>

    <body style="FONT-FAMILY: 'Times New Roman'" bgcolor="#ffffff">
        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><b><font size="2">UNITED
        STATES</font></b></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center">
        <b><font size="2">SECURITIES AND EXCHANGE COMMISSION</font></b></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center">
        <b><font size="2">Washington, D.C. 20549</font></b></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center">
        <font size="2">______________</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><b><font size="2">FORM
        8-K</font></b></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center">
        <b><font size="2">CURRENT REPORT</font></b></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center">
        <b><font size="2">Pursuant to Section 13 or 15(d) of the Securities Exchange Act of
        1934</font></b></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><font size="2">Date of
        Report (Date of earliest event reported): December 5, 2007</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center">
        <b><font size="2">JACLYN, INC.</font></b></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center">
        <font size="2">&nbsp;<img src="img1.gif"><br>
        </font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><font size="2">(Exact
        Name of Registrant as Specified in its Charter)</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <div align="left">
            <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" align="center" border="0">
                <tr>
                    <td valign="top" nowrap width="30%">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt" align="center">
                        <u><font size="2">Delaware</font></u></p>
                    </td>

                    <td valign="top" nowrap width="40%">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt" align="center">
                        <u><font size="2">1-5863</font></u></p>
                    </td>

                    <td valign="top" nowrap width="30%">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt" align="center">
                        <u><font size="2">22-1432053</font></u></p>
                    </td>
                </tr>
            </table>
        </div>

        <div align="left">
            <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" align="center" border="0">
                <tr>
                    <td valign="top" nowrap width="270">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt" align="center">
                        <font size="2">(State or Other Jurisdiction</font></p>
                    </td>

                    <td valign="top" nowrap width="359">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt" align="center">
                        <font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Commission
                        <font size="2">&nbsp;File No.)</font></font></p>
                    </td>

                    <td valign="top" nowrap width="270">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt" align="center">
                        <font size="2">(IRS Employer <font size="2">Identification
                        No.)</font></font></p>
                    </td>
                </tr>
            </table>
        </div>

        <div align="left">
            <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" align="center" border="0">
                <tr>
                    <td valign="top" nowrap width="271">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt" align="center">
                        <font size="2">of Incorporation)</font></p>
                    </td>

                    <td valign="top" nowrap width="358">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt" align="center">
                        &nbsp;</p>
                    </td>

                    <td valign="top" nowrap width="270">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt" align="center">
                        &nbsp;</p>
                    </td>
                </tr>
            </table>
        </div>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <div align="left">
            <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
                <tr>
                    <td valign="top" nowrap width="144">
                    </td>

                    <td style="BORDER-BOTTOM: #000000 0px solid" valign="top" nowrap width="688">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        <font size="2">197 West Spring Valley Avenue</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: #000000 0px solid" valign="top" nowrap width="153">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        &nbsp;</p>
                    </td>
                </tr>

                <tr>
                    <td style="BORDER-BOTTOM: #000000 1px solid" valign="top" nowrap width="144">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        &nbsp;</p>
                    </td>

                    <td style="BORDER-BOTTOM: #000000 1px solid" valign="top" nowrap width="688">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        <font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Maywood, New
                        Jersey</font></p>
                    </td>

                    <td style="BORDER-BOTTOM: #000000 1px solid" valign="top" nowrap width="153">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        <font size="2">07607</font></p>
                    </td>
                </tr>

                <tr>
                    <td style="BORDER-BOTTOM: #000000 0px solid" valign="top" nowrap width="144">
                    </td>

                    <td style="BORDER-BOTTOM: #000000 0px solid" valign="top" nowrap width="688">
                    <font size="2">(Address of Principal Executive Offices)</font></td>

                    <td style="BORDER-BOTTOM: #000000 0px solid" valign="top" nowrap width="153">
                    <font size="2">(Zip Code</font></td>
                </tr>
            </table>
        </div>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center">
        <font size="2">Registrant's telephone number, including area code: (201)
        909-6000</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><font size="2">Not
        Applicable</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center">
        <font size="2">&nbsp;<img src="img3.gif"><br>
        </font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><font size="2">(Former
        Name or Former Address, if Changed Since Last Report)</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><font size="2">Check the
        appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the
        filing obligation of the registrant under any of the following provisions:</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <div align="left">
            <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
                <tr>
                    <td valign="top" width="24">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        <font size="2"><font face="Wingdings">o</font></font></p>
                    </td>

                    <td valign="top">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        <font size="2">Written communications pursuant to Rule 425 under the
                        Securities Act (17 CFR 230.425)</font></p>
                    </td>
                </tr>
            </table>
        </div>

        <div align="left">
            <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
                <tr>
                    <td valign="top" width="24">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        <font size="2"><font face="Wingdings">o</font></font></p>
                    </td>

                    <td valign="top">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        <font size="2">Soliciting material pursuant to Rule 14a-12 under the
                        Exchange Act (17 CFR 240.14a-12)</font></p>
                    </td>
                </tr>
            </table>
        </div>

        <div align="left">
            <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
                <tr>
                    <td valign="top" width="24">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        <font size="2"><font face="Wingdings">o</font></font></p>
                    </td>

                    <td valign="top">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        <font size="2">Pre-commencement communications pursuant to Rule 14d-2(b)
                        under the Exchange Act (17 CFR 240.14d-2(b))</font></p>
                    </td>
                </tr>
            </table>
        </div>

        <div align="left">
            <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
                <tr>
                    <td valign="top" width="24">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        <font size="2"><font face="Wingdings">o</font></font></p>
                    </td>

                    <td valign="top">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        <font size="2">Pre-commencement communications pursuant to Rule 13e-4(c)
                        under the Exchange Act (17 CFR 240.13e-4(c))</font></p>
                    </td>
                </tr>
            </table>
        </div>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>
        <!-- EEDocs PBStart-->
        <hr align="center" width="100%" noshade size="2">

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

        <div align="left">
            <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="211" border="0">
                <tr>
                    <td valign="top" nowrap width="96">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify">
                        <b><font size="2">Item 8.01.</font></b></p>
                    </td>

                    <td valign="top" nowrap width="115">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify">
                        <b><font size="2">Other Events.</font></b></p>
                    </td>
                </tr>
            </table>
        </div>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 0.51in; TEXT-ALIGN: justify">
        <font size="2">On December 5, 2007, Jaclyn, Inc. (the
        &ldquo;</font><u><font size="2">Company</font></u><font size="2">&rdquo;) issued a press
        release announcing that a special committee of independent directors has&nbsp;recommended,
        and the Company&rsquo;s&nbsp;Board of Directors has&nbsp;approved, plans to cease the
        registration of its common stock under federal securities laws and to withdraw its shares
        of common stock from listing on the American Stock Exchange. The Company is taking these
        steps to avoid the substantial and increasing cost and expense of being a Securities and
        Exchange Commission reporting company and of regulatory compliance under the Sarbanes-Oxley
        Act of 2002, and to focus the Company&rsquo;s resources on increasing long-term stockholder
        value.</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 0.51in; TEXT-ALIGN: justify">
        <font size="2">In order to deregister its shares of common stock under federal securities
        laws, the Company will need to reduce its number of stockholders of record to below 300. To
        accomplish this, the Board of Directors is proposing to amend the Company&rsquo;s
        certificate of incorporation to effect a reverse stock split, which would immediately be
        followed by a forward stock split. The special committee of the Board of Directors has
        tentatively determined a reverse/forward stock split ratio of 1-for-250 shares. As a
        result, and assuming this ratio is used, record holders owning less than 250 shares of
        common stock will receive a cash payment of $10.21 per share, and record holders owing 250
        or more shares of common stock will retain their current numbers of shares of common stock
        without change. The Company also anticipates making this payment available to its
        beneficial owners who own less than 250 shares of common stock (assuming this ratio is
        used) at the time the reverse stock split is completed.</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 0.52in; TEXT-ALIGN: justify">
        <font size="2">The stock splits will be considered at a special meeting of the
        Company&rsquo;s stockholders expected to be held before the end of the Company&rsquo;s
        current fiscal year, which ends on June 30, 2008.</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 0.51in; TEXT-ALIGN: justify">
        <font size="2">If the stock splits are approved by the Company&rsquo;s stockholders, then
        following the stock splits, the Company would continue certain important corporate
        governance measures and other protections, including, but not limited to, making available
        to stockholders annual audited and quarterly unaudited financial statements, continuing to
        have the Company&rsquo;s financial statements certified by the Company&rsquo;s chief
        executive officer and chief financial officer, continuing to hold annual stockholder
        meetings, and disclosing other material events to stockholders on a periodic basis through
        press releases or by other acceptable methods. In addition, it is a condition to the
        transaction that the Company&rsquo;s common stock be quoted on the OTCQX<sup>SM</sup> tier
        of Pink Sheets, LLC.</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 0.52in; TEXT-ALIGN: justify">
        <font size="2">The special committee and the Board of Directors each have reserved the
        right to change the ratio of the stock splits or to choose an alternative to the stock
        splits to the extent they believe it is necessary or desirable in order to accomplish the
        goal of reducing the number of record holders to below 300. They may also abandon the
        proposed stock splits at any time prior to the completion of the proposed transaction if
        they believe that the proposed transaction is no longer in the best interests of the
        Company or its stockholders.</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>
        <!-- EEDocs PBStart-->
        <hr align="center" width="100%" noshade size="2">

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

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 0.52in; TEXT-ALIGN: justify">
        <font size="2">The foregoing description is qualified in its entirety to the actual text of
        the press release, which is attached to this Current Report on Form 8-K as Exhibit 99.01
        and is incorporated by reference herein.</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify">&nbsp;</p>

        <div align="left">
            <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="355" border="0">
                <tr>
                    <td valign="top" nowrap width="96">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify">
                        <b><font size="2">Item 9.01.</font></b></p>
                    </td>

                    <td valign="top" nowrap width="259">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify">
                        <b><font size="2">Financial Statements and Exhibits.</font></b></p>
                    </td>
                </tr>
            </table>
        </div>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify">&nbsp;</p>

        <div align="left">
            <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="220" border="0">
                <tr>
                    <td valign="top" nowrap width="96">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0in; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify">
                        &nbsp;</p>
                    </td>

                    <td valign="top" nowrap width="48">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify">
                        <font size="2">(d)</font></p>
                    </td>

                    <td valign="top" nowrap width="76">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify">
                        <font size="2">Exhibits.</font></p>
                    </td>
                </tr>
            </table>
        </div>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: justify">&nbsp;</p>

        <div align="left">
            <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="333" border="0">
                <tr>
                    <td valign="top" nowrap width="96">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0in; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify">
                        &nbsp;</p>
                    </td>

                    <td valign="top" nowrap width="144">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify">
                        <u><font size="2">Exhibit No</font></u><font size="2">.</font></p>
                    </td>

                    <td valign="top" nowrap width="93">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify">
                        <u><font size="2">Description</font></u></p>
                    </td>
                </tr>
            </table>
        </div>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 2.5in; TEXT-INDENT: -2.5in; TEXT-ALIGN: justify">
        &nbsp;</p>

        <div align="left">
            <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
                <tr>
                    <td valign="top" width="114">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0in; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify">
                        &nbsp;</p>
                    </td>

                    <td valign="top" width="126">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        <font size="2">99.01</font></p>
                    </td>

                    <td valign="top">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: justify">
                        <font size="2">Press Release of the Company dated December 5,
                        2007</font></p>
                    </td>
                </tr>
            </table>
        </div>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; TEXT-ALIGN: center">
        <b><font size="2">SIGNATURES</font></b></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 0.5in; TEXT-ALIGN: justify">
        <font size="2">Pursuant to the requirements of Securities Exchange Act of 1934, the
        registrant has duly caused this report to be signed on its behalf by the undersigned
        hereunto duly authorized.</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 0.5in; TEXT-ALIGN: justify">
        &nbsp;</p>

        <div align="left">
            <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
                <tr>
                    <td valign="top" nowrap width="55">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 109.08%; TEXT-ALIGN: justify">
                        <font size="2">Date:</font></p>
                    </td>

                    <td valign="top" nowrap width="516">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 109.08%; TEXT-ALIGN: justify">
                        <font size="2">December 5, 2007</font></p>
                    </td>

                    <td valign="top" nowrap width="414">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 109.08%; TEXT-ALIGN: justify">
                        <font size="2">JACLYN, INC.<br>
                        <br>
                        </font></p>
                    </td>
                </tr>

                <tr>
                    <td valign="top" nowrap width="55">
                    </td>

                    <td valign="top" nowrap width="516">
                    </td>

                    <td valign="top" nowrap width="414">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 109.08%; TEXT-ALIGN: justify">
                        <font size="2">By:</font> <u><font size="2">/s/ Anthony
                        Christon</font></u></p>
                    </td>
                </tr>

                <tr>
                    <td valign="top" nowrap width="55">
                    </td>

                    <td valign="top" nowrap width="516">
                    </td>

                    <td valign="top" nowrap width="414">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 109.08%" align="left">
                        <font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Anthony
                        Christon, Chief Financial Officer</font></p>
                    </td>
                </tr>
            </table>
        </div>
        <!-- EEDocs PBStart-->
        <hr align="center" width="100%" noshade size="2">

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

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; LINE-HEIGHT: 101.66%; TEXT-ALIGN: center">
        <u><font size="2">EXHIBIT INDEX</font></u></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center">&nbsp;</p>

        <div align="left">
            <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="285" border="0">
                <tr>
                    <td valign="top" nowrap width="48">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 109.08%; TEXT-ALIGN: left">
                        &nbsp;</p>
                    </td>

                    <td valign="top" nowrap width="144">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 109.08%; TEXT-ALIGN: left">
                        <u><font size="2">Exhibit No.</font></u></p>
                    </td>

                    <td valign="top" nowrap width="93">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 109.08%; TEXT-ALIGN: left">
                        <u><font size="2">Description</font></u></p>
                    </td>
                </tr>
            </table>
        </div>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 0.5in; TEXT-ALIGN: left">
        &nbsp;</p>

        <div align="left">
            <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
                <tr>
                    <td valign="top" width="66">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0in; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        &nbsp;</p>
                    </td>

                    <td valign="top" width="126">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        <font size="2">99.01</font></p>
                    </td>

                    <td valign="top">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        <a href="ex99_1-f8k120507.htm"><font size="2">Press Release of the Company
                        dated December 5, 2007</font></a></p>
                    </td>
                </tr>
            </table>
        </div>
        <!-- EEDocs PBStart--><!-- EEDocs PBEnd-->

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>
    </body>
</html>

</TEXT>
</DOCUMENT>
<DOCUMENT>
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<DOCUMENT>
<TYPE>EX-99
<SEQUENCE>4
<FILENAME>ex99_1-f8k120507.htm
<DESCRIPTION>EX-99.1; PRESS RELEASE DATED DECEMBER 12, 2007
<TEXT>
<html>
    <head>
        <title></title>
    </head>

    <body style="FONT-FAMILY: 'Times New Roman'" bgcolor="#ffffff">
        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt" align="right"><u><font size="2"><A NAME="ex99_1-120507">Exhibit 99.01</A></font></u></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 2in; TEXT-INDENT: -2in; TEXT-ALIGN: right">
        &nbsp;</p>

        <div align="left">
            &nbsp;
        </div>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"></p>

        <table cellspacing="0" cellpadding="0" width="100%" border="0">
            <tr>
                <td width="100%">
                    <p align="right">
                    <font face="Times New Roman, Times, serif" size="2"><strong>NEWS</strong></font><br>

                    <br>
                    <font face="Times New Roman, Times, serif" size="2">Company Contact: Anthony
                    Christon<br>
                    Chief Financial Officer<br>
                    Jaclyn, Inc.<br>
                    (201) 909-6000</font></p>
                </td>
            </tr>
        </table>
        <br>
        <br>


        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><u><font size="2">FOR
        IMMEDIATE RELEASE</font></u></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center">
        <b><font size="2">JACLYN&rsquo;S BOARD OF DIRECTORS APPROVES</font></b></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center">
        <b><font size="2">PROPOSED DEREGISTRATION TRANSACTION</font></b></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><b><font size="2">THE
        COMPANY WILL CONTINUE MAJOR CORPORATE</font></b></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center">
        <b><font size="2">GOVERNANCE MEASURES, INCLUDING THE PREPARATION OF</font></b></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><b><font size="2">ANNUAL
        AUDITED AND QUARTERLY UNAUDITED FINANCIAL</font></b></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center">
        <b><font size="2">STATEMENTS AND EXPECTS TO BE QUOTED ON</font></b></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><b><font size="2">THE
        OTCQX<sup>SM</sup> TIER OF PINK SHEETS, LLC</font></b></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 0.51in; TEXT-ALIGN: left">
        <font size="2">Maywood, NJ, December 5,
        2007.........................................Jaclyn, Inc. (AMEX:JLN) today announced that a
        special committee of independent directors has recommended, and its Board of Directors has
        approved, plans to cease the registration of its common stock under federal securities laws
        and to withdraw its shares of common stock from listing on the American Stock
        Exchange.</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 0.52in; TEXT-ALIGN: left">
        <font size="2">The Company is taking these steps to avoid the substantial and increasing
        cost and expense of being an SEC reporting company and of regulatory compliance under the
        Sarbanes-Oxley Act of 2002, and to focus the Company&rsquo;s resources on increasing
        long-term stockholder value. The Company anticipates savings of approximately $500,000 on
        an annual basis as a result of the proposed deregistration and delisting transaction, as
        well as an additional one-time savings during its current fiscal year for initial costs of
        compliance with the internal control provisions of the Sarbanes-Oxley Act.</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 0.51in; TEXT-ALIGN: left">
        <font size="2">For the protection of all continuing stockholders, the Company will also
        continue certain important corporate governance measures and other protections following
        the proposed transaction, which are noted below, including making available to stockholders
        annual audited and quarterly unaudited financial statements, continuing to have the
        Company&rsquo;s financial statements certified by the Company&rsquo;s chief executive
        officer and chief financial officer, continuing to hold annual stockholder meetings, and
        disclosing other material events to stockholders on a periodic basis through press releases
        or by other acceptable methods. In addition, it is a condition to the transaction that the
        Company&rsquo;s common stock be quoted on the OTCQX<sup>SM</sup> tier of Pink Sheets,
        LLC.</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>
        <!-- EEDocs PBStart-->
        <hr align="center" width="100%" noshade size="2">

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

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><u><font size="2">The
        Proposed Transaction</font></u></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 0.52in; TEXT-ALIGN: left">
        <font size="2">The Board of Directors decided to propose these steps after concluding that
        the disadvantages of remaining an SEC reporting company, including compliance with the
        internal control provisions of the Sarbanes-Oxley Act, outweigh the benefits to the Company
        and its stockholders. Among the factors considered were:</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <div align="left">
            <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
                <tr>
                    <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 6pt; PADDING-TOP: 0in" valign="top" width="24">
                        <p style="MARGIN-TOP: 0in; MARGIN-BOTTOM: 6pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        &nbsp;</p>
                    </td>

                    <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 6pt; PADDING-TOP: 0in" valign="top" width="24">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        <font size="4"><b>&bull;</b></font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 6pt; PADDING-TOP: 0in" valign="top">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        <font size="2">the significant ongoing costs and management time and effort
                        of compliance with the Sarbanes-Oxley Act, including with the internal
                        control provisions of Section 404 of that act;</font></p>
                    </td>
                </tr>
            </table>
        </div>

        <div align="left">
            <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
                <tr>
                    <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 6pt; PADDING-TOP: 0in" valign="top" width="24">
                        <p style="MARGIN-TOP: 0in; MARGIN-BOTTOM: 6pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        &nbsp;</p>
                    </td>

                    <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 6pt; PADDING-TOP: 0in" valign="top" width="24">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        <font size="4"><b>&bull;</b></font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 6pt; PADDING-TOP: 0in" valign="top">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        <font size="2">the significant ongoing costs and management time and effort
                        involved in the preparation and filing of periodic and other reports with
                        the SEC;</font></p>
                    </td>
                </tr>
            </table>
        </div>

        <div align="left">
            <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
                <tr>
                    <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 6pt; PADDING-TOP: 0in" valign="top" width="24">
                        <p style="MARGIN-TOP: 0in; MARGIN-BOTTOM: 6pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        &nbsp;</p>
                    </td>

                    <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 6pt; PADDING-TOP: 0in" valign="top" width="24">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        <font size="4"><b>&bull;</b></font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 6pt; PADDING-TOP: 0in" valign="top">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        <font size="2">the limited trading volume and liquidity of the
                        Company&rsquo;s shares of common stock;</font></p>
                    </td>
                </tr>
            </table>
        </div>

        <div align="left">
            <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
                <tr>
                    <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 6pt; PADDING-TOP: 0in" valign="top" width="24">
                        <p style="MARGIN-TOP: 0in; MARGIN-BOTTOM: 6pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        &nbsp;</p>
                    </td>

                    <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 6pt; PADDING-TOP: 0in" valign="top" width="24">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        <font size="4"><b>&bull;</b></font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 6pt; PADDING-TOP: 0in" valign="top">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        <font size="2">the small effect of the proposed transaction on the relative
                        voting power of continuing stockholders;</font></p>
                    </td>
                </tr>
            </table>
        </div>

        <div align="left">
            <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
                <tr>
                    <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 6pt; PADDING-TOP: 0in" valign="top" width="24">
                        <p style="MARGIN-TOP: 0in; MARGIN-BOTTOM: 6pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        &nbsp;</p>
                    </td>

                    <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 6pt; PADDING-TOP: 0in" valign="top" width="24">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        <font size="4"><b>&bull;</b></font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 6pt; PADDING-TOP: 0in" valign="top">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        <font size="2">the business and operations of the Company are expected to
                        continue substantially as presently conducted;</font></p>
                    </td>
                </tr>
            </table>
        </div>

        <div align="left">
            <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
                <tr>
                    <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 6pt; PADDING-TOP: 0in" valign="top" width="24">
                        <p style="MARGIN-TOP: 0in; MARGIN-BOTTOM: 6pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        &nbsp;</p>
                    </td>

                    <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 6pt; PADDING-TOP: 0in" valign="top" width="24">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        <font size="4"><b>&bull;</b></font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 6pt; PADDING-TOP: 0in" valign="top">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        <font size="2">enabling the Company&rsquo;s smallest stockholders, who
                        represent a disproportionately large number of the Company&rsquo;s record
                        holders, to liquidate their holdings in shares of common stock and receive
                        a premium over current market prices without incurring brokerage
                        commissions;</font></p>
                    </td>
                </tr>
            </table>
        </div>

        <div align="left">
            <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
                <tr>
                    <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 6pt; PADDING-TOP: 0in" valign="top" width="24">
                        <p style="MARGIN-TOP: 0in; MARGIN-BOTTOM: 6pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        &nbsp;</p>
                    </td>

                    <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 6pt; PADDING-TOP: 0in" valign="top" width="24">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        <font size="4"><b>&bull;</b></font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 6pt; PADDING-TOP: 0in" valign="top">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        <font size="2">the determination by Houlihan Smith &amp; Company, Inc., the
                        independent financial advisor to the special committee, that the cash-out
                        price of fractional shares is fair from a financial point of view to both
                        those stockholders who would be cashed out in the proposed transaction and
                        to unaffiliated continuing stockholders; and</font></p>
                    </td>
                </tr>
            </table>
        </div>

        <div align="left">
            <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
                <tr>
                    <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 6pt; PADDING-TOP: 0in" valign="top" width="24">
                        <p style="MARGIN-TOP: 0in; MARGIN-BOTTOM: 6pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        &nbsp;</p>
                    </td>

                    <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 6pt; PADDING-TOP: 0in" valign="top" width="24">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        <font size="4"><b>&bull;</b></font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 6pt; PADDING-TOP: 0in" valign="top">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        <font size="2">as a result of the deregistration and delisting, the ability
                        of the Company&rsquo;s management and employees to focus their time, effort
                        and resources on long-term growth and increasing long-term stockholder
                        value.</font></p>
                    </td>
                </tr>
            </table>
        </div>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 0.51in; TEXT-ALIGN: left">
        <font size="2">In order to deregister its shares of common stock, the Company will need to
        reduce its number of stockholders of record to below 300. To accomplish this, the Board of
        Directors is proposing to amend the Company&rsquo;s certificate of incorporation to effect
        a reverse stock split, which would immediately be followed by a forward stock split. The
        special committee of the Board of Directors has tentatively determined a reverse/forward
        stock split ratio of 1-for-250 shares. As a result, and assuming this ratio is used, record
        holders owning less than 250 shares of common stock will receive a cash payment of $10.21
        per share, and record holders owing 250 or more shares of common stock will retain their
        current numbers of shares of common stock without change. The Company also anticipates
        making this payment available to its beneficial owners who own less than 250 shares of
        common stock (assuming this ratio is used) at the time the reverse stock split is
        completed.</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>
        <!-- EEDocs PBStart-->
        <hr align="center" width="100%" noshade size="2">

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

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 0.52in; TEXT-ALIGN: left">
        <font size="2">The stock splits will be considered at a special meeting of the
        Company&rsquo;s stockholders expected to be held before the end of the Company&rsquo;s
        current fiscal year, which ends on June 30, 2008.</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 0.52in; TEXT-ALIGN: left">
        <font size="2">The special committee and the Board each have reserved the right to change
        the ratio of the stock splits or to choose an alternative to the stock splits to the extent
        they believe it is necessary or desirable in order to accomplish the goal of reducing the
        number of record holders to below 300. They may also abandon the proposed stock splits at
        any time prior to the completion of the proposed transaction if they believe that the
        proposed transaction is no longer in the best interests of the Company or its
        stockholders.</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><u><font size="2">Special
        Continuing Stockholder Protections</font></u></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 0.52in; TEXT-ALIGN: left">
        <font size="2">Both the special committee&rsquo;s recommendation and the full Board&rsquo;s
        approval have been conditioned on the establishment of certain corporate governance and
        other protections for those stockholders who will continue to own shares of common stock
        after the proposed transaction. These measures, certain of which are listed below, are
        intended to provide continuing stockholders with financial and other information about the
        Company on a regular basis, as well as to maintain a trading market in the Company&rsquo;s
        shares of common stock.</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <div align="left">
            <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
                <tr>
                    <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 6pt; PADDING-TOP: 0in" valign="top" width="24">
                        <p style="MARGIN-TOP: 0in; MARGIN-BOTTOM: 6pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        &nbsp;</p>
                    </td>

                    <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 6pt; PADDING-TOP: 0in" valign="top" width="24">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        <font size="4"><b>&bull;</b></font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 6pt; PADDING-TOP: 0in" valign="top">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        <u><i><font size="2">Continuation of Trading Opportunities for our
                        Stockholders</font></i></u><i><font size="2">.</font></i>
                        <font size="2">The shares of common stock of the Company are expected to be
                        quoted on the OTCQX<sup>SM</sup> tier of Pink Sheets, LLC. The &ldquo;Pink
                        Sheets&rdquo; is a tiered listing service that offers financial and other
                        information about issuers of securities, and collects and publishes quotes
                        of market makers for over-the-counter securities through its website
                        at</font>
                        <u><font size="2">www.pinksheets.com</font></u><font size="2">.</font></p>
                    </td>
                </tr>
            </table>
        </div>

        <div align="left">
            <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
                <tr>
                    <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 6pt; PADDING-TOP: 0in" valign="top" width="24">
                        <p style="MARGIN-TOP: 0in; MARGIN-BOTTOM: 6pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        &nbsp;</p>
                    </td>

                    <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 6pt; PADDING-TOP: 0in" valign="top" width="24">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        <font size="4"><b>&bull;</b></font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 6pt; PADDING-TOP: 0in" valign="top">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        <u><i><font size="2">Availability of Financial
                        Statements</font></i></u><i><font size="2">.</font></i> <font size="2">The
                        Company will continue to prepare audited annual financial statements and
                        unaudited quarterly financial statements and will make them available to
                        stockholders.</font></p>
                    </td>
                </tr>
            </table>
        </div>

        <div align="left">
            <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
                <tr>
                    <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 6pt; PADDING-TOP: 0in" valign="top" width="24">
                        <p style="MARGIN-TOP: 0in; MARGIN-BOTTOM: 6pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        &nbsp;</p>
                    </td>

                    <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 6pt; PADDING-TOP: 0in" valign="top" width="24">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        <font size="4"><b>&bull;</b></font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 6pt; PADDING-TOP: 0in" valign="top">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        <u><i><font size="2">Availability of Annual and Quarterly
                        Reports</font></i></u><i><font size="2">.</font></i> <font size="2">The
                        Company will prepare and make available to stockholders annual and
                        quarterly reports as required by Pink Sheets.</font></p>
                    </td>
                </tr>
            </table>
        </div>

        <div align="left">
            <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
                <tr>
                    <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 6pt; PADDING-TOP: 0in" valign="top" width="24">
                        <p style="MARGIN-TOP: 0in; MARGIN-BOTTOM: 6pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        &nbsp;</p>
                    </td>

                    <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 6pt; PADDING-TOP: 0in" valign="top" width="24">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        <font size="4"><b>&bull;</b></font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 6pt; PADDING-TOP: 0in" valign="top">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        <u><i><font size="2">Financial Statement
                        Certification</font></i></u><i><font size="2">.</font></i>
                        <font size="2">The Company&rsquo;s financial statements will continue to be
                        certified by the Company&rsquo;s chief executive officer and chief
                        financial officer as required by Pink Sheets.</font></p>
                    </td>
                </tr>
            </table>
        </div>

        <div align="left">
            <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
                <tr>
                    <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 6pt; PADDING-TOP: 0in" valign="top" width="24">
                        <p style="MARGIN-TOP: 0in; MARGIN-BOTTOM: 6pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        &nbsp;</p>
                    </td>

                    <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 6pt; PADDING-TOP: 0in" valign="top" width="24">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        <font size="4"><b>&bull;</b></font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 6pt; PADDING-TOP: 0in" valign="top">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        <u><i><font size="2">Independent
                        Directors</font></i></u><i><font size="2">.</font></i> <font size="2">After
                        the proposed transaction, at least two directors who are independent within
                        the meaning of the rules of the American Stock Exchange will continue to be
                        members of the Board of Directors.</font></p>
                    </td>
                </tr>
            </table>
        </div>

        <div align="left">
            <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
                <tr>
                    <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 6pt; PADDING-TOP: 0in" valign="top" width="24">
                        <p style="MARGIN-TOP: 0in; MARGIN-BOTTOM: 6pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        &nbsp;</p>
                    </td>

                    <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 6pt; PADDING-TOP: 0in" valign="top" width="24">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        <font size="4"><b>&bull;</b></font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 6pt; PADDING-TOP: 0in" valign="top">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        <u><i><font size="2">Board Review of Certain
                        Transactions</font></i></u><font size="2">. Any non-compensation
                        transaction with any member of the Board of Directors, any officer, any
                        member of our control stockholder group, and their immediate families will
                        be reviewed by the Board of Directors or by a committee of the Board with
                        at least one independent member. If the transaction would have been
                        required to be disclosed to stockholders under then current SEC rules and
                        regulations, it will likewise be publicly disclosed.</font></p>
                    </td>
                </tr>
            </table>
        </div>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>
        <!-- EEDocs PBStart-->
        <hr align="center" width="100%" noshade size="2">

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

        <div align="left">
            <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
                <tr>
                    <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 6pt; PADDING-TOP: 0in" valign="top" width="24">
                        <p style="MARGIN-TOP: 0in; MARGIN-BOTTOM: 6pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        &nbsp;</p>
                    </td>

                    <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 6pt; PADDING-TOP: 0in" valign="top" width="24">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        <font size="4"><b>&bull;</b></font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 6pt; PADDING-TOP: 0in" valign="top">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        <u><i><font size="2">Material Event
                        Disclosure</font></i></u><font size="2">. Material events periodically will
                        be disclosed to stockholders through the issuance of press releases or in
                        another acceptable manner.</font></p>
                    </td>
                </tr>
            </table>
        </div>

        <div align="left">
            <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
                <tr>
                    <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 6pt; PADDING-TOP: 0in" valign="top" width="24">
                        <p style="MARGIN-TOP: 0in; MARGIN-BOTTOM: 6pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        &nbsp;</p>
                    </td>

                    <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 6pt; PADDING-TOP: 0in" valign="top" width="24">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        <font size="4"><b>&bull;</b></font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 6pt; PADDING-TOP: 0in" valign="top">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        <u><i><font size="2">Codes of Ethics</font></i></u><font size="2">. The
                        Company has already adopted and made publicly available a Code of Business
                        Conduct for Finance Professionals and a General Code of Ethics for
                        Employees. These codes will remain in place after the proposed
                        transaction.</font></p>
                    </td>
                </tr>
            </table>
        </div>

        <div align="left">
            <table style="BORDER-COLLAPSE: collapse" cellspacing="0" cellpadding="0" width="100%" border="0">
                <tr>
                    <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 6pt; PADDING-TOP: 0in" valign="top" width="24">
                        <p style="MARGIN-TOP: 0in; MARGIN-BOTTOM: 6pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        &nbsp;</p>
                    </td>

                    <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 6pt; PADDING-TOP: 0in" valign="top" width="24">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        <font size="4"><b>&bull;</b></font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0in; PADDING-LEFT: 0in; PADDING-BOTTOM: 6pt; PADDING-TOP: 0in" valign="top">
                        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; TEXT-ALIGN: left">
                        <u><i><font size="2">Annual Stockholders
                        Meetings</font></i></u><font size="2">. Annual stockholder meetings will
                        continue to be held.</font></p>
                    </td>
                </tr>
            </table>
        </div>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><font size="2">These
        special stockholder protections will remain in effect for a minimum of three years after
        the proposed transaction.</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><font size="2">* * * *
        *</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 0.52in; TEXT-ALIGN: left">
        <font size="2">Allan Ginsburg, Chairman of the Board, noted &ldquo;Costs associated with
        public reporting obligations are significant and have an impact on our results. We firmly
        believe that to remain a public company in today&rsquo;s regulatory environment is just not
        warranted, and that our stockholders and the value of their shares will be best served by
        emphasizing long-term growth and using our resources to that end.&rdquo; Mr. Ginsburg added
        &ldquo;We have adopted a number of conditions to the proposed stock splits intended to
        maintain liquidity and regular trading in our shares of common stock. With the regular
        public dissemination of financial and other material information about the Company and its
        businesses, and having our shares quoted on the OTCQX<sup>SM</sup> tier of Pink Sheets,
        LLC, we expect our stockholders will have the continued ability to trade our shares of
        common stock, while at the same time benefiting from the increased value that the
        substantial savings from this transaction should bring.&rdquo;</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center"><font size="2">* * * *
        *</font></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: center">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><b><small>THIS</small>
        <small>PRESS</small> <small>RELEASE</small> <small>IS</small> <small>ONLY</small>
        <small>A</small> <small>BRIEF</small> <small>DESCRIPTION</small> <small>OF</small>
        <small>THE</small> <small>PROPOSED</small> <small>TRANSACTION.</small> <small>IT</small>
        <small>IS</small> <small>NOT</small> <small>A</small> <small>REQUEST</small>
        <small>FOR</small> <small>OR</small> <small>SOLICITATION</small> <small>OF</small>
        <small>A</small> <small>PROXY</small> <small>OR</small> <small>AN</small>
        <small>OFFER</small> <small>TO</small> <small>ACQUIRE</small> <small>OR</small>
        <small>SELL</small> <small>ANY</small> <small>SHARES</small> <small>OF</small>
        <small>COMMON</small> <small>STOCK.</small> <small>THE</small> <small>COMPANY</small>
        <small>INTENDS</small> <small>TO</small> <small>FILE</small> <small>A</small>
        <small>PROXY</small> <small>STATEMENT</small> <small>AND</small> <small>OTHER</small>
        <small>REQUIRED</small> <small>MATERIALS,</small> <small>INCLUDING</small> <small>A</small>
        <small>SCHEDULE</small> 13<small>E-3,</small> <small>WITH</small> <small>THE</small>
        <small>SECURITIES</small> <small>AND</small> <small>EXCHANGE</small>
        <small>COMMISSION</small> <small>CONCERNING</small> <small>THE</small>
        <small>PROPOSED</small> <small>STOCK</small> <small>SPLITS.</small> <small>A</small>
        <small>COPY</small> <small>OF</small> <small>ALL</small> <small>FINAL</small>
        <small>PROXY</small> <small>MATERIALS</small> <small>WILL</small> <small>BE</small>
        <small>SENT</small> <small>TO</small> <small>STOCKHOLDERS</small> <small>PRIOR</small>
        <small>TO</small> <small>A</small> <small>SPECIAL</small> <small>MEETING</small>
        <small>OF</small> <small>STOCKHOLDERS</small> <small>AT</small> <small>WHICH</small>
        <small>OUR</small> <small>STOCKHOLDERS</small> <small>WILL</small> <small>BE</small>
        <small>ASKED</small> <small>TO</small> <small>VOTE</small> <small>ON</small>
        <small>THE</small> <small>PROPOSALS</small> <small>DESCRIBED</small> <small>IN</small>
        <small>THE</small> <small>MATERIALS</small> <small>YOU</small> <small>WILL</small>
        <small>RECEIVE.</small> <small>THE</small> <small>COMPANY,</small> <small>ITS</small>
        <small>DIRECTORS</small> <small>AND</small> <small>EXECUTIVE</small>
        <small>OFFICERS</small> <small>MAY</small> <small>BE</small> <small>CONSIDERED</small>
        <small>TO</small> <small>BE</small> <small>PARTICIPANTS</small> <small>IN</small>
        <small>THE</small> <small>FORTHCOMING</small> <small>SOLICITATION</small> <small>OF</small>
        <small>PROXIES</small> <small>FROM</small> <small>THE</small> <small>COMPANY'S</small>
        <small>STOCKHOLDERS.</small> <small>A</small> <small>LIST</small> <small>OF</small>
        <small>THE</small> <small>NAMES</small> <small>OF</small> <small>THE</small>
        <small>COMPANY'S</small> <small>DIRECTORS</small> <small>AND</small>
        <small>EXECUTIVE</small> <small>OFFICERS,</small> <small>AND</small> <small>A</small>
        <small>DESCRIPTION</small> <small>OF</small> <small>THEIR</small> <small>INTERESTS</small>
        <small>IN</small> <small>THE</small> <small>COMPANY,</small> <small>ARE</small>
        <small>SET</small> <small>FORTH</small> <small>IN</small> <small>THE</small>
        <small>COMPANY'S</small> <small>PROXY</small> <small>STATEMENT</small> <small>FILED</small>
        <small>WITH</small> <small>THE</small> <small>SEC</small> <small>ON</small>
        <small>OCTOBER</small> 29<small>,</small> 2007<small>.</small> <small>STOCKHOLDERS</small>
        <small>MAY</small> <small>OBTAIN</small> <small>ADDITIONAL</small>
        <small>INFORMATION</small> <small>REGARDING</small> <small>THE</small>
        <small>INTERESTS</small> <small>OF</small> <small>PARTICIPANTS</small> <small>BY</small>
        <small>READING</small> <small>THE</small> <small>PROXY</small> <small>STATEMENT</small>
        <small>RELATED</small> <small>TO</small> <small>THE</small> <small>PROPOSED</small>
        <small>TRANSACTION</small> <small>WHEN</small> <small>IT</small> <small>BECOMES</small>
        <small>AVAILABLE.</small> <small>WE</small> <small>URGE</small> <small>ALL</small>
        <small>STOCKHOLDERS</small> <small>TO</small> <small>READ</small> <small>THE</small>
        <small>PROXY</small> <small>STATEMENT</small> <small>WHEN</small> <small>IT</small>
        <small>BECOMES</small> <small>AVAILABLE,</small> <small>AS</small> <small>WELL</small>
        <small>AS</small> <small>ALL</small> <small>OTHER</small> <small>RELEVANT</small>
        <small>DOCUMENTS</small> <small>FILED</small> <small>WITH</small> <small>THE</small>
        <small>SEC,</small> <small>BECAUSE</small> <small>THOSE</small> <small>DOCUMENTS</small>
        <small>WILL</small> <small>INCLUDE</small> <small>IMPORTANT</small>
        <small>INFORMATION.</small> <small>A</small> <small>FREE</small> <small>COPY</small>
        <small>OF</small> <small>ALL</small> <small>MATERIALS</small> <small>WE</small></b></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"></p>
        <hr>
        <br>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left"><b><small>FILE</small>
        <small>WITH</small> <small>THE</small> <small>SECURITIES</small> <small>AND</small>
        <small>EXCHANGE</small> <small>COMMISSION,</small> <small>INCLUDING</small>
        <small>OUR</small> <small>SCHEDULE</small> 13<small>E-3</small> <small>AND</small>
        <small>PROXY</small> <small>STATEMENT,</small> <small>WILL</small> <small>BE</small>
        <small>AVAILABLE</small> <small>AT</small> <small>NO</small> <small>COST</small>
        <small>ON</small> <small>THE</small> <small>SEC'S</small> <small>WEBSITE</small>
        <small>AT</small> <small>WWW.SEC.GOV.</small> <small>WHEN</small> <small>THOSE</small>
        <small>DOCUMENTS</small> <small>BECOME</small> <small>AVAILABLE,</small> <small>THE</small>
        <small>PROXY</small> <small>STATEMENT</small> <small>AND</small> <small>OTHER</small>
        <small>DOCUMENTS</small> <small>FILED</small> <small>BY</small> <small>THE</small>
        <small>COMPANY</small> <small>MAY</small> <small>ALSO</small> <small>BE</small>
        <small>OBTAINED</small> <small>WITHOUT</small> <small>CHARGE</small> <small>BY</small>
        <small>DIRECTING</small> <small>A</small> <small>REQUEST</small> <small>TO</small>
        <small>JACLYN,</small> <small>INC.,</small> 197 <small>WEST</small> <small>SPRING</small>
        <small>VALLEY</small> <small>AVENUE,</small> <small>MAYWOOD,</small> <small>NEW</small>
        <small>JERSEY</small> 07607<small>,</small> <small>ATTENTION:</small>
        <small>SECRETARY.</small></b></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">
        <u><i><font size="2">Forward Looking Statements</font></i></u></p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">&nbsp;</p>

        <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; TEXT-ALIGN: left">
        <u><i><b><font size="2">Note</font></b></i></u><b><font size="2">:</font></b>
        <font size="2">This press release may contain forward-looking statements that are being
        made pursuant to the Private Securities Litigation Reform Act of 1995, which provides a
        "safe harbor" for forward-looking statements to encourage companies to provide prospective
        information so long as those statements are accompanied by meaningful cautionary statements
        identifying important factors that could cause actual results to differ materially from
        those discussed in the statement. Our forward-looking statements are subject to a number of
        known and unknown risks and uncertainties that could cause actual results, performance or
        achievements to differ materially from those described or implied in the forward-looking
        statements, including, but not limited to, general economic and business conditions;
        competition in the accessories and apparel markets, potential changes in customer spending;
        acceptance of our product offerings and designs; the variability of consumer spending
        resulting from changes in domestic economic activity; any significant variations between
        actual amounts and the amounts estimated for those matters identified as our critical
        accounting estimates, as well as other significant accounting estimates made in the
        preparation of our financial statements; and the impact of hostilities in the Middle East
        and in other geographic areas, as well as other geopolitical concerns. Accordingly, actual
        results may differ materially from such forward-looking statements. You are urged to
        consider all such factors, as well as those included in our Annual Report on Form 10-K for
        the year ended June 30, 2007. Our forward-looking statements relating to the transaction
        discussed above are based on our current expectations, assumptions, estimates and
        projections about the Company and involve significant risks and uncertainties, including
        the many variables that may impact our projected cost savings, variables and risks related
        to consummation of the transaction, SEC regulatory review of our filings related to the
        transaction, and the continuing determination of the Board of Directors and special
        committee that the transaction is in the best interests of all stockholders. The Company
        assumes no obligation for updating any such forward-looking statements to reflect actual
        results, changes in assumptions or changes in other factors affecting such forward-looking
        statements.</font></p>

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