Q.E.P. Reports Higher Earnings, Lower Sales

Boca Raton, FL, July 16, 2008-- Q.E.P. Co. Inc. reported net income of $1.23 million or $0.35 per share in its fiscal 2009 first quarter ended May 31.

A year ago the company reported net income of $857,000 or $0.23 per share.

However, sales fell to $52.9 million, a decrease of $4.1 million from the $57.0 million reported in the same quarter of fiscal 2008.

The company said that a better product mix at the Company's North American operations resulted in the gross margin increasing from 29.1 percent in the first quarter of fiscal 2008 to 30.3 percent in the first quarter of fiscal 2009.