Universal Power Group Inc. (fka UPGI)

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During the first quarter of 2008, our net income rose 51.3% to $0.6 million, or $0.11 per share, compared to $0.4 million, or $0.07 per share, for the first quarter of 2007.

Revenues in the first quarter of 2008 rose 25.4% to $29.5 million compared to $23.5 million for the first quarter of 2007, reflecting the strength in our new and existing customer relationships and successful execution of our growth strategy. First quarter 2008 revenues from sources other than Brinks Home Security ("Brinks") and their dealers rose 45.5% to $16.0 million from $11.0 million in the first quarter of 2007, reflecting growth of new and existing customer accounts as well as price increases implemented by us to offset higher costs of goods sold. Growth in our higher margin business for the first quarter was driven 46% by volume and 54% by price increases. First quarter revenues from Brinks increased to $13.5 million, up 7.7% compared to $12.5 million in the first quarter of 2007. We believe this modest increase partially reflects slower growth in the residential housing market, as well as price increases. Additionally, and of note, our concentration of revenues with Brinks and their dealers fell to 46% of our total revenues in the first quarter 2008 compared to 53% in the first quarter of 2007, even considering the modest increase in sales to Brinks and their dealers.

Gross margin grew 30.0% and improved as a percentage of revenues for the first quarter of 2008 to 15.2% compared to 14.6% in the comparable period in 2007. This increase reflects product mix improvement, including our reduced concentration with Brinks noted above, as well as price increases to offset higher raw material costs.

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