QEP Reports Profits, Higher Revenue in Quarter

Boca Raton, FL, January 15, 2008--Q.E.P. Co. had net income of $800,000 or 22 cents per share for its 2008 third quarter ended Nov. 30.

The company had revenues of $54.6 million compared to $54.3 million the previous year

``I am pleased with our performance," said CEO Lewis Gould. He noted the company had higher revenue despite selling Q.E.P. O'Tool Inc. last May and Q.E.P. Stone Holdings last July.

In addition, he said gross profit 28.8 percent from 26.8 percent primarily due to product mix. For the first nine months the company had record sales of $168.7 million with a gross profit percentage of 28.7 percent as compared to $162.7 million with a gross profit percentage of 27.3 percent for the first nine months of fiscal 2007.

``Maintaining our quarterly revenue at higher margins along with keeping a tight hold on our operating costs and expenses produced operating income of $2.0 million for the third quarter of fiscal 2008 and $8.2 million for the first nine months of fiscal 2008," Gould said.

QEP generated $3.1 million in cash compared to $2.5 million in the first nine months of fiscal 2007. That, along with the proceeds from the sale of O'Tool and Stone Holdings operations, enabled QEP to pay a $2.3 million put warrant settlement, purchase a new Adelanto, Calif. facility and pay down debt by $1.3 million.