ST. PAUL, Minn.–(EMWNews)–Micro Component Technology, Inc. (OTCBB: MCTI) today reported results

for its second quarter ended June 28, 2008. Net sales for the second

quarter of 2008, at $3.0 million, increased 35% over the first quarter

of 2008; however, net sales were down 25% from the second quarter of

2007. Net loss was $685,000, or $0.02 per share in the second quarter of

2008, compared to a net loss of $1.1 million in the first quarter of

2008 and a net loss of $280,000 in the second quarter of 2007. Net sales

for six months ending June 28, 2008 were $5.2 million, down 30% from

2007. Net loss for the six months was $1.8 million, compared to $439,000

in 2007.

MCT’s Chairman and Chief Executive Officer,

Roger E. Gower, commented, “Our strong

bookings in the first and second quarter of 2008 were clearly reflected

in our sales increase of 35% over the first quarter of 2008. In

addition, MCT shipped another new product in the second quarter, which

continues the new product market expansion begun in the first quarter.

It should also be noted that the second quarter results included

non-cash expense of $282,000 for amortization of warrant discounts

associated with the refinancing of our loan agreements, as well as a

$78,000 restructuring charge. In a Form 8-K filed with the SEC today,

MCT announced that additional financing has been obtained from our

secured lender. We believe that this financing transaction provides the

capability to allow MCT to move forward with various strategic

initiatives not available previously.”

MCT is a leading manufacturer of test handling and automation solutions

satisfying the complete range of handling requirements of the global

semiconductor industry. MCT has recently introduced several new products

under its Smart Solutions™ line of

automation products, including Tapestry®,

SmartMark™, SmartSort™,

and SmartTrak™, which are designed to

automate the back-end of the semiconductor manufacturing process. MCT

believes it has the largest installed IC test handler base of any

manufacturer, with over 11,000 units worldwide. MCT is headquartered in

St. Paul, Minnesota, with its core manufacturing operation in Penang,

Malaysia and is traded on the OTC Bulletin Board under the symbol MCTI.

For more information on the Company, visit its web site at http://www.mct.com

Except for the historical information contained herein, the matters

discussed in this news release are forward looking statements that

involve risks and uncertainties, including the timely development and

acceptance of new products, the impact of competitive products and

pricing, the impact on cash and results of operations from a flattening

or renewed downturn in the semiconductor capital equipment market, the

need for additional financing, and the other factors detailed from time

to time in the Company’s SEC reports, including but not limited to the

discussion in the Risk Factors and Management’s Discussion & Analysis

included in Form 10-K for the year ended December 31, 2007 and Form 10-Q

for the quarter ended March 29, 2008.

Condensed Consolidated Statements of Operations (Unaudited)
(In thousands, except per share data)
		Three months ended								Six months ended
		June 28,				June 30,				June 28,				June 30,
		2008				2007				2008				2007
Net sales		$	2,963			$	3,960			$	5,161			$	7,337
Cost of sales			1,531				1,875				2,664				3,479
Gross profit			1,432				2,085				2,497				3,858
Gross margin			48.3	%			52.7	%			48.4	%			52.6	%
Selling, general and administrative			1,054				1,121				2,216				2,226
Research and development cost			432				484			896					984
Restructuring charge			78				137				78				137
Total operating expenses			1,564				1,742				3,190				3,347
Operating income (loss)			(132	)			343				(693	)			511
Interest			(271	)			(287	)			(520	)			(558	)
Interest – amortization of warrant discounts and debt issue costs
			(282	)			(306	)			(563	)			(451	)
Other income (expense)		–					(30	)			(25	)			59
Net income (loss)		$	(685	)		$	(280	)		$	(1,801	)		$	(439	)
Net income (loss) per share:
Basic		$	(0.02	)		$	(0.01	)		$	(0.05	)		$	(0.01	)
Diluted		$	(0.02	)		$	(0.01	)		$	(0.05	)		$	(0.01	)
Weighted average shares outstanding:
Basic			37,877				36,665				37,877				36,665
Diluted			37,877				36,665				37,877				36,665
Condensed Consolidated Balance Sheets (Unaudited)
(In thousands)
		June 28,				Dec. 31,
		2008				2007
Assets
Current assets
Cash and cash equivalents		$	392			$	373
Accounts receivable, net			2,418				3,044
Inventories, net			1,538				1,671
Other current assets			165				108
Total current assets			4,513				5,196
Property, net			96				114
Debt issue costs and other, net			152				199
Micro Component Technology, Inc. Roger E. Gower, President/C.E.O., 651-697-4000 or Michelle Sprunck, Investor Relations, 651-697-4026 Major Newsire & Press Release Distribution with Basic Starting at only $19 and Complete OTCBB / Financial Distribution only $89 Get Unlimited Organic Website Traffic to your Website  TheNFG.com now offers Organic Lead Generation & Traffic Solutions