CPS Technologies Corporation Announces Third Quarter 2009 Results

NORTON, MA, Nov 09 (MARKET WIRE) --
CPS Technologies Corporation (OTCBB: CPSH) today announced revenue of
$2.9 million and a net loss of ($137) thousand or ($0.01) per basic and
diluted share for the fiscal quarter ended September 26, 2009. This
compares with revenue of $3.6 million and net income of $165 thousand or
$0.01 per basic share and diluted share for the fiscal quarter ended
September 27, 2008.

Grant Bennett, President, said, "Demand in Q3 was lower than we expected
and lower than forecast by our customers. In several cases, orders were
placed by customers, but during the quarter customers pushed deliveries
further into the future. Our net loss results from maintaining payroll and
expenses at a level sufficient to serve greater demand than actually
materialized, and from the fact that our Cooperative Agreement with the
Army Research Laboratory, wherein CPS is cost sharing 5%, was a larger
percentage of total revenue. We believe that demand experienced in Q3 is
below the underlying level of demand for current products that will be
present as the economy emerges from recession and so we are managing our
current costs in a manner that will enable us to respond quickly and cost
effectively as demand increases."

"Customer orders in Q3 and in Q4 to date suggest that at least some
segments of the economy are rebounding. The deliveries pushed out by
customers in Q3 have generally been released for delivery in Q4, and in
some cases the quantities increased in Q4. These orders and releases lead
us to believe that demand will be higher in Q4 for all product families.
We expect Q4, and 2009 as a whole, to be profitable," said Bennett.

In Q3 we achieved several important technical milestones in our
Cooperative Agreement with the US Army for armor development. The focus
of this Agreement is manufacturing technology for armor and we are making
progress in both reducing manufacturing costs and learning how to make
very large modules. The target applications are primarily armored
vehicles.

After product development cycles of several years, hybrid vehicles using
CPS baseplates are now in production. For example, both Mercedes Benz and
BMW are selling and marketing hybrid vehicles in Europe which contain CPS
baseplates. We have achieved several design wins in this product area and
expect revenue growth to accelerate in this segment in Q4 and over the
next several years.

Our products are used in high-power, high-reliability applications. These
applications involve energy use or energy generation and our products
allow higher performance and improved energy efficiency. We are indeed an
important participant in the growing movement towards alternative energy
and "green" lifestyles. For example, our baseplates are used in mass
transit, hybrid and electric cars and wind-turbines for electricity
generation; our flip chip heatspreaders are used in routers and switches
for the internet, which in turn allows telecommuting. We believe these
markets will continue to grow for some time.

This release does contain forward-looking statements. Various factors
could cause actual results to differ materially from those projected in
such statements. These factors include, but are not limited to, a
continued or deepening general economic or business downturn in 2009 or a
downturn in the electronics industry.

CPS TECHNOLOGIES CORPORATION
(OTC Bulletin Board: CPSH)

Quarters Ended
-------------------------------
September 26, September 27,
2009 2008
-------------- ---------------

Revenues $ 2,864,219 $ 3,580,350

Net Income (loss) $ (136,532) $ 165,268

Basic earnings (loss) per basic share $ (0.01) $ 0.01

Weighted average basic shares 12,624,959 12,621,003

Diluted earnings (loss) per diluted share $ (0.01) $ 0.01

Weighted average diluted shares 12,624,959 13,265,264

Nine-month Periods Ended
--------------------------------
September 26, September 27,
2009 2008
--------------- ---------------

Revenues $ 9,519,295 $ 11,468,175

Net Income $ 24,632 $ 1,154,770

Basic earnings per basic share $ 0.00 $ 0.09

Weighted average basic shares 12,624,959 12,578,490

Diluted earnings per diluted share $ 0.00 $ 0.09

Weighted average diluted shares 12,889,175 13,252,628

CPS Technologies Corporation
Grant Bennett
President
111 South Worcester Street
Norton, MA 02766
Telephone: (508) 222-0614
Fax: (508) 222-0220
Web Site: www.alsic.com

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