Versus Technology Announces Third Quart...(Equipment 344000 ...),Health

Goodwill 1,533,000 1,533,000

Other Non-Current Assets 9,000 9,000

$5,331,000 $6,153,000

See accompanying report of management.

VERSUS TECHNOLOGY, INC. AND SUBSIDIARY

Consolidated Balance Sheets

(Unaudited)

July 31, 2008 October 31, 2007

Liabilities and Shareholders' Equity

Current Liabilities

Accounts payable $470,000 $523,000

Accrued expenses 224,000 263,000

Deferred revenue from customer advance

payments 138,000 242,000

Total Current Liabilities 832,000 1,028,000

Shareholders' Equity

Common stock $0.01 par value;

120,000,000 shares authorized;

95,325,325 and 92,781,325 shares

issued and outstanding 953,000 928,000

Additional paid-in capital 42,657,000 42,483,000

Accumulated deficit (39,111,000) (38,286,000)

Total Shareholders' Equity 4,499,000 5,125,000

$5,331,000 $6,153,000

See accompanying report of management.

VERSUS TECHNOLOGY, INC. AND SUBSIDIARY

Consolidated Statements of Operations

(Unaudited)

Three Months Ended Nine Months Ended

July 31, July 31,

2008 2007 2008 2007

Reven
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