ORBIT/FR Reports Q1 Results

HORSHAM, Pa., May 20 /PRNewswire-FirstCall/ -- ORBIT/FR, Inc.
(OTC Bulletin Board: ORFR), a leading producer of sophisticated, automated
microwave test and measurement systems for the aerospace/defense, wireless
communication, automotive, and satellite industries, today reported results
for the three months ended March 31, 2008.
The Company's revenues for the three months ended March 31, 2008 decreased
approximately 7.0% to $6.05 million, from $6.5 million for the three months
ended March 31, 2007, and decreased approximately 17% from $7.3 million for
the three months ended December 31, 2007. The Company's gross margin for the
three month period ended March 31, 2008 was 16.1% compared to 34% for the
three month period ended March 31, 2007 and 31.8% for the three month period
ended December 31, 2007. The lower margin percentage in 2008 is largely a
result of contracts mix with lower margins. In addition, the Company charged
cost of revenues approximately $317,000 for costs in inventory that were
incurred for a contract with a customer in the Far East that was cancelled. In
2004, the Israeli Ministry of Defense (IMOD) implemented a policy suspending
the export of all Israeli military and commercial use products to certain Far
East countries. To date, the Company's discussions with the IMOD for
reimbursement have been not been successful. The Company's operating loss for
the three months ended March 31, 2008 was $1,145,000, compared to operating
income of $130,000 for the three months ended March 31, 2007, and $310,000 for
the three months ended December 31, 2007. The Company's net loss for the three
months ended March 31, 2008 was $1,093,000 (or $0.18 per basic and diluted
common share), compared to a net income of $142,000 (or $0.02 per basic and
diluted common share) recognized during the three months ended March 31, 2007,
and compared to net income of $477,000 (or $0.08 per basic and diluted common
share) for the three months ended December 31, 2007.
Except for historical information, the matters discussed in this news
release may be considered "forward-looking" statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. Such statements include
declarations regarding the current intent, belief or expectations of the
Company and its management. Prospective investors are cautioned that any such
forward-looking statements, including those regarding the ability to obtain
new contracts, and future profitability involve a number of risks and
uncertainties that could materially affect actual results. Such risks and
uncertainties are identified in the Company's reports and registration
statements filed with the Securities and Exchange Commission, including its
Annual Report on Form 10-K for the year ended December 31, 2007 and Forms 10-
Q. This press release, and all SEC filings are available at www.orbitfr.com

ORBIT/FR, Inc.

UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except share and per share data)

Three months ended
March 31, December 31,
2008 2007 2007

Contract revenues $6,049 $6,514 $7,272
Cost of revenues 5,077 4,293 4,955
Gross profit 972 2,221 2,317
Operating expenses:
General and administrative 814 897 612
Sales and marketing 829 817 959
Research and development 474 377 436
Total operating expenses 2,117 2,091 2,007
Operating (loss) income (1,145) 130 310
Impairment of costs in excess of
net assets acquired -- -- (80)
Other (loss) income, net (46) 85 16
(Loss) income before income taxes (1,191) 215 246
Income tax (benefit) expense (98) 73 (231)
Net (loss) income $(1,093) $142 $477

Basic and diluted net (loss)
income per share $(0.18) $0.02 $0.08
Weighted average number common shares
basic 6,001,573 6,001,573 6,001,573
diluted 6,090,265 6,027,691 6,029,143

March 31, December 31,
Selected Financial Data (amounts in thousands) 2008 2007

Cash and cash equivalents $1,606 $2,214
Working capital 4,504 6,444
Total assets 15,827 17,370
Total liabilities, all current 7,793 8,297
Stockholders' equity 8,034 9,073

SOURCE ORBIT/FR, Inc.

Relland Winand, Investor Relations of ORBIT-FR, Inc., +1-215-674-5100,
rellandw@orbitfr.com