COSTA MESA, Calif., March 27 /PRNewswire-FirstCall/ -- TROY Group, Inc. (Pink Sheets: TROY) announced today that financial results for the first quarter of fiscal 2009, which ended February 28, 2009, have been posted on the company's web-site at http://www.troygroup.com/. To access the report, click on About TROY Group then click on Financials. TROY's financial results are also posted at http://www.pinksheets.com/. Enter TROY in the symbol field then click on Financial Report. Revenue for the three months ended February 28, 2009 decreased to $8.4 million compared to revenue for the three months ended February 29, 2008 of $10.6 million largely due to turmoil in the financial markets and the affect on our major customers in the financial industry. Earnings from continuing operations for the three months ended February 28, 2009 decreased to $0.01 per share compared to $0.07 per share for the three months ended February 29, 2008. The consolidated balance sheet and consolidated statement of income are attached to this press release. Please refer to the quarterly report including financial statements for more detailed information. FINANCIAL STATEMENTS TROY GROUP, INC. CONDENSED CONSOLIDATED BALANCE SHEETS Assets February 28, November 30, 2009 2008 (unaudited) Current assets: Cash and cash equivalents $1,143,000 $10,879,000 Investment in available-for-sale securities 5,674,000 5,037,000 Accounts receivable, net of allowances 2009 $264,000; 2008 $333,000 3,532,000 3,977,000 Inventories 2,911,000 2,697,000 Prepaid expenses and other 1,235,000 1,161,000 Deferred tax assets 397,000 446,000 Total current assets 14,892,000 24,197,000 Equipment and leasehold improvements, net 1,234,000 1,373,000 Goodwill 281,000 281,000 Other assets, including receivables from stockholders; $1,899,000 in 2009 and 2008 3,568,000 3,588,000 Total assets $19,975,000 $29,439,000 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $1,467,000 $1,544,000 Accrued expenses 1,699,000 1,621,000 Dividend payable - 9,676,000 Deferred revenue 1,507,000 1,390,000 Total current liabilities 4,673,000 14,231,000 Non-current liabilities 1,209,000 1,229,000 Total liabilities 5,882,000 15,460,000 Commitments and contingencies Stockholders' equity: Preferred stock, no par value, authorized 100,000 shares; issued none - - Common stock, par value $0.01 per share; authorized 13,000,000 shares; issued 9,676,351 shares; outstanding 9,676,351 shares 97,000 97,000 Additional paid-in capital 18,278,000 18,218,000 Retained earnings (4,282,000) (4,336,000) Total stockholders' equity 14,093,000 13,979,000 Total liabilities and stockholders' equity $19,975,000 $29,439,000 TROY GROUP, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (unaudited) Three Months Ended February 28, February 29, 2009 2008 Net sales $8,420,000 $10,553,000 Cost of goods sold 5,175,000 6,343,000 Gross profit 3,245,000 4,210,000 Operating expenses: Selling, general and administrative 2,594,000 2,709,000 Research and development 584,000 622,000 Total operating expenses 3,178,000 3,331,000 Operating income 67,000 879,000 Interest income 18,000 178,000 Income from continuing operations before income taxes 85,000 1,057,000 Provision for income taxes 31,000 391,000 Income from continuing operations 54,000 666,000 Loss from discontinued operations, net of tax - (73,000) Gains on disposal of discontinued operations, net of tax - 1,647,000 Discontinued operations, net of tax - 1,574,000 Net income $54,000 $2,240,000 Net income per share: Basic income from continuing operations $0.01 $0.07 Basic income from discontinued operations - 0.16 Basic income $0.01 $0.23 Diluted income from continuing operations $0.01 $0.07 Diluted income from discontinued operations - 0.15 Diluted income $0.01 $0.22 Weighted average shares outstanding: Basic 9,676,000 9,850,000 Diluted 9,676,000 10,045,000 About TROY Group TROY Group, Inc. ("TROY") is a worldwide leader of secure on-demand printing solutions. TROY solutions manage, secure and simplify end-to-end enterprise printing environments. TROY offers application software, security printing hardware and specialized consumables for securely printing checks, money orders, transcripts, prescriptions and other important documents. TROY solutions are used by small and medium size businesses as well as large enterprises and governmental organizations to manage fraud, operational risk and comply with government regulations related to protecting information privacy. As a Gold Solutions Partner to Hewlett Packard, TROY is the only company in the world authorized by HP to enhance HP printers and consumables for use in secure printing workflows. Only TROY MICR and Security printers and HP compatible MICR Toner cartridges are certified by Hewlett Packard for quality and reliability. We sell and service our products to major corporations, banks, key government accounts and distributors worldwide. Visit TROY at http://www.troygroup.com/ Forward-looking statements of TROY (statements that are not historical fact) in this news release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may be identified by terms such as believe, expect, may, will, could and should, and the negative of these terms or other similar expressions. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those discussed in the forward-looking statements. These risks and uncertainties include, but, are not limited to, the ability to sell investments when needed, the ability to develop new products, the ability to hire and retain qualified management, technology and other personnel, the impact of competition from existing and new technologies and companies and the other factors set forth in our periodic reports and other documents that we distribute from time to time which are available in our financial statements under certain important factors on our website TROYgroup.com or pinksheets.com. Statements included in this news release are based upon information known to TROY as of the date of this release, and TROY assumes no obligation to update information contained in this news release. TROY Group, Inc. 940 South Coast Drive, Suite 200 Costa Mesa, CA 92626 (714) 241-4760 (714) 241-4762 Fax Contact: Myra Erickson Investor Relations DATASOURCE: TROY Group, Inc. CONTACT: Investor Relations, Myra Erickson, +1-714-241-4760, Fax, +1-714-241-4762, for TROY Group, Inc. Web Site: http://www.troygroup.com/

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