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Photonic Products Group, Inc. Reports Record Financial Results for FY 2007
Date:3/31/2008

0% convertible preferred stock,

Series A no par value; no shares issued

and outstanding at December 31, 2007

and 500 shares issued and outstanding

at December 31, 2006 - 500,000

10% convertible preferred stock,

Series B no par value; no shares issued

and outstanding at December 31, 2007

and 2,082 shares issued and outstanding

at December 31, 2006 - 2,082,000

Common stock: $.01 par value; 60,000,000

authorized shares 10,104,719 issued at

December 31, 2007 and 7,882,074 issued

at December 31, 2006 101,046 78,820

Capital in excess of par value 15,320,771 11,926,815

Accumulated deficit (7,694,068) (9,335,982)

7,727,749 5,251,653

Less - Common stock in treasury, at cost

(4,600 shares) (14,950) (14,950)

Total Shareholders' Equity 7,712,799 5,236,703

Total Liabilities & Shareholders'

Equity $16,077,947 $15,316,260

PHOTONIC PRODUCTS GROUP, INC AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

Years Ended December 31,

2007 2006 2005

Revenues

Net sales $15,099,878 $13,921,127 $13,785,057

Cost and expenses

Cost of goods sold 9,141,049 9,377,313 9,956,125

Selling, general and

administrative expense 3,561,570 3,627,244 3,450,224

Internal research and

development expense - - 20,279


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SOURCE Photonic Products Group, Inc.
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