Versus Technology Announces Fourth Quart...(928000 866000 Additional...),Health

Additional paid-in capital 42,483,000 41,832,000

Accumulated deficit (38,286,000) (38,078,000)

Total Shareholders' Equity 5,125,000 4,620,000

$ 6,153,000 $ 5,471,000

See accompanying report of management.

The full annual report will be published at http://www.versustech.com when available.

VERSUS TECHNOLOGY, INC. AND SUBSIDIARY

Consolidated Statements of Operations

Three Months Ended October 31, Year Ended October 31,

2007 2006 2007 2006

Revenues $2,012,000 $2,177,000 $5,566,000 $5,812,000

Operating Expenses

Cost of

revenues 581,000 741,000 1,810,000 2,105,000

Research and

development 154,000 199,000 610,000 700,000

Sales and

marketing 775,000 460,000 2,508,000 1,716,000

General and

administrative 183,000 245,000 910,000 1,181,000

Total Operating

Expenses 1,693,000 1,645,000 5,838,000 5,702,000

Income (Loss)

From Operations 319,000 532,000 (272,000) 110,000

Other Income

(Expense)

Interest income 16,000 8,000 61,000 47,000

Interest expense,

accretion of debt

discount - - - (1,639,000)

Interest expense,

other - - - (216,000)

Net foreign currency

gain (loss) - - 3,000 6,0
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