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Photonic Products Group, Inc. Reports Record Financial Results for FY 2007

l performance, or of the Company's liquidity. The reader is referred to the Supplemental Financial Data set forth below for a reconciliation of net income to EBITDA.

At December 31,

Reconciliation of EBITDA to

Net Income 2007 2006 2005

Net income (loss), as reported $1,880,000 $ 772,000 $ (11,000)

Non-cash, stock-based

compensation 34,000 118,000 21,000

Non-GAAP based net income 1,914,000 890,000 10,000

Income tax provision 250,000 21,000 -

Interest expense, net 261,000 402,000 505,000

Depreciation and Amortization 1,120,000 1,099,000 970,000

EBITDA $3,545,000 $2,412,000 $1,485,000

Photonic Products Group, Inc. develops, manufactures, and markets products and services for use in diverse Photonics industry sectors via its expanding portfolio of distinctly branded businesses. INRAD specializes in crystal-based optical components and devices, laser accessories and instruments. Laser Optics specializes in precision custom optical components, assemblies, and optical coatings. MRC Optics' business specializes in precision diamond turned optics, metal optics, and opto-mechanical and electro-optical assemblies. PPGI's customers include leading corporations in the Defense and Aerospace, Laser Systems, and Process Control and Metrology sectors of the Photonics Industry, as well as the U.S. Government. Its products are also used by researchers at National Laboratories and Universities world-wide.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements contained in this press release that are not purely historical are forward looking statements within the meaning of Section 27A of the

SOURCE Photonic Products Group, Inc.
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