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Chairman and CEO, Joel Girsky, stated, "Jaco's improved fiscal first quarter results, including the operating profit and a significantly reduced net loss from continuing operations, reflect a company-wide focus on Jaco's U.S.-based business, Asian logistics programs, our discipline in reducing the company's costs and an increase in gross profit margins, compared to the prior-year quarter.

"Our flat panel display offerings continue to offer diversification to our core component distribution business and we were successful during the quarter in further utilizing the capacity of our new flat panel engineering and integration center,” continued Girsky.

During the quarter Jaco was awarded a multi-million dollar, electronic voting machine contract from Sequoia to manufacture EDGE 2, 15-inch flat panel touch-screen voting machines for Chicago and surrounding regions. These products will be manufactured and shipped over the next few months.

"The increase in gross profit margins is primarily attributable to lower-margin logistics programs representing a smaller percentage of our overall revenue in the fiscal 2006 first quarter than in prior recent periods. Our balance in the market between our core U.S. distribution operations, our Far Eastern logistics services and the expanding flat panel display (FPD) market will result in quarter to quarter margin variability depending on which product has the biggest contribution to net sales,” said Girsky.