STEN Corporation Reports Fiscal 2008 Results

MINNEAPOLIS, Jan. 12 /PRNewswire-FirstCall/ -- STEN Corporation (Nasdaq:
STEN), a Minneapolis-based diversified business; today reported results for
its year ended September 28, 2008. The Company reported a net loss for the
year ended September 28, 2008, of $8,021,386 or $3.25 per diluted share
compared to a net loss for the year ended September 30, 2007 of $2,205,714 or
$1.11 per diluted share. For the year ended September 28, 2008, the Company
had a loss from continuing operations of $5,435,061 or $2.71 per diluted share
and a loss from discontinued operations of $1,344,325 or $0.54 per diluted
share. This compares to a loss from continuing operations of $2,753,542 or
$0.93 per diluted share and a loss from discontinued operations of $344,376 or
$0.18 per diluted share for the year ended September 30, 2007. A significant
portion of the loss relates to non-cash charges including recording an
allowance against approximately $2.96 million in net deferred tax assets.
Kenneth Brimmer, CEO noted, "As a small finance company dealing with sub-prime
borrowers we were hurt particularly hard by the marketplace events of the last
year including the historic crisis in the credit markets, the most significant
general economic recession in more than 20 years, the historic low levels of
investor confidence, and the ever-increasing costs associated with being a
public company. The combined effects of all these factors contributed to the
significant loss for the year."

The Company also reported that on January 12, 2009, the Company received a
Staff Deficiency Letter regarding a deficiency in the composition of the
Company's Audit Committee for the period from October 28, 2008 to December 12,
2008. Due to the resignation of Steven F. Sabes from the Board and Audit
Committee on October 28, 2008, the Company became non-compliant with the audit
committee requirement for continued listing on The Nasdaq Stock Market as set
forth in Marketplace Rule 4350(d)(2) because the Company's Audit Committee was
comprised of only two instead of three members. On December 12, 2008, the
Company's Board of Directors appointed Gervaise Wilhelm, an independent
director, to serve on the Audit Committee. As a result of this action, the
Company's Audit Committee is now comprised of three members, all of whom are
independent directors. Accordingly, as stated in the Staff Deficiency Letter,
the Nasdaq staff has determined that the Company has regained compliance with
the Marketplace Rule 4350(d)(2).

STEN Corporation and Subsidiaries, headquartered in Minnesota, is a
diversified business, primarily focused on its financing business through STEN
Financial Corporation.

STEN Corporation common stock is traded on the Nasdaq Capital Market under the
symbol STEN. More information about STEN Corporation is available at the
Company's website: www.stencorporation.com. Except for historical information
contained herein, the disclosures in this news release are forward-looking
statements that could be affected by certain risks and uncertainties, and
actual results may differ materially, depending on a variety of factors. These
risks are described in the Company's filings with the Securities and Exchange
Commission. The Company undertakes no duty or obligation to update any of the
forward-looking statements after the date of this release.

STEN CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(AUDITED)

09/28/2008 09/30/2007

REVENUES
Stencor sales $2,053,430 $1,444,822
STEN Financial, auto loan interest
and other 2,416,110 1,164,603
STEN Financial, vehicle sales 11,402,061 1,167,212
TOTAL REVENUES 15,871,601 3,776,637

COST AND EXPENSES
Costs of goods sold related to Stencor 2,079,164 1,903,240
Loss on impairment of Stencor assets 650,000
Expenses related to STEN Financial
Cost of autos sold 7,755,240 1,002,808
Salaries and benefits 1,307,904 727,352
Occupancy and operation expenses 778,980 240,923
Depreciation and amortization 251,853 200,301
Provision for credit losses 3,435,116 1,160,936
Interest expense, net 3,297,357 626,728
Loss on impaired of STEN Financial asset 571,667 -
Selling, general and administrative 1,179,381 667,891

TOTAL COST AND EXPENSES 21,306,662 6,530,179

Loss from Continuing Operations
Before Income Taxes (5,435,061) (2,753,542)

Provision for (benefit from) income taxes 1,242,000 (892,204)

NET LOSS FROM CONTINUING OPERATIONS (6,677,061) (1,861,338)

Loss from Discontinued Operations Before
Income Taxes (1,344,325) (550,844)
Benefit from income taxes 0 (206,468)
Loss from discontinued operations (1,344,325) (344,376)
NET LOSS $(8,021,386) $(2,205,714)

NET LOSS PER SHARE FROM CONTINUING OPERATIONS:
Basic $(2.71) $(0.93)
Diluted $(2.71) $(0.93)
NET LOSS PER SHARE FROM DISCONTINUED
OPERATIONS:
Basic $(0.54) $(0.18)
Diluted $(0.54) $(0.18)
NET LOSS PER SHARE:
Basic $(3.25) $(1.11)
Diluted $(3.25) $(1.11)
WEIGHTED AVERAGE COMMON AND COMMON
EQUIVALENT SHARES OUTSTANDING
Basic 2,470,348 1,989,975
Diluted 2,470,348 1,989,975

STEN CORPORATION AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
(AUDITED)

ASSETS

09/28/08 09/30/07
09/30/07
CURRENT ASSETS
Cash and cash equivalents $242,733 $156,399
Current portion of notes and loans receivable 2,817,234 2,213,649
Other current assets 3,134,249 3,103,852
Assets of discontinued operations 80,074 1,928,575
Total Current Assets 6,274,290 7,402,475

PROPERTY AND EQUIPMENT, NET 824,141 1,051,012

OTHER ASSETS
Notes and loan receivable, net of
Current portion 8,813,057 5,695,849
Other assets 2,313,649 3,163,343
Total Other Assets 11,126,706 8,859,192

TOTAL ASSETS $18,225,137 $17,312,679

LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES
Current portion of long-term debt $5,442,524 $2,886,265
Other current liabilities 1,791,706 1,845,010
Liabilities of discontinued operations 1,344,407 1,626,752
Total Current Liabilities 8,578,637 6,358,027

LONG-TERM LIABILITIES
Dealer reserves 27,303 1,076,707
Long-term debt, net of current portion 10,983,738 4,457,458
Total Long-Term Liabilities 11,011,041 5,534,165

Total Liabilities 19,589,678 11,892,192

STOCKHOLDERS' EQUITY (1,364,541) 5,420,487

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $18,225,137 $17,312,679

SOURCE STEN Corporation

Kenneth W. Brimmer of STEN Corporation, +1-952-545-2776,
kbrimmer@stencorporation.com