Versus Technology Announces Fourth Quart...(ended October 31 2007 and 2006 have been...),Health

Management has elected to omit substantially all of the footnote disclosures required by accounting principles generally accepted in the United States. If the omitted disclosures were included in the financial statements, they might influence the user's conclusions about the Company's financial position, results of operations, and cash flows. Accordingly, these financial statements are not designed for those who are not informed about such matters.

The reader should refer to the Versus Technology, Inc. 2006 Annual Report which is available at http://www.versustech.com/annual_reports.htm for further details regarding the 2006 results. The full annual report for 2007 will be published at http://www.versustech.com when available.

Richard W. Ebersole

Chief Financial Officer

December 28, 2007

VERSUS TECHNOLOGY, INC. AND SUBSIDIARY

Consolidated Balance Sheets

October 31, 2007 and 2006

October 31,

2007 2006

Assets

Current Assets

Cash and cash equivalents $ 2,428,000 $ 1,401,000

Accounts receivable, including

$91,000 and $23,000 of unbilled

revenues 1,134,000 1,714,000

Inventories 824,000 576,000

Prepaid expenses and other current

assets 127,000 62,000

Total Current Assets 4,513,000 3,753,000

Property and Equipment

Machinery and equipment 374,000
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