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Optical Cable Corporation (OCCF) Reports 270% Increase in Net Income for the Second Quarter

Optical Cable Corporation (OCCF), a manufacturer of fiber optic cables for military and civilian clients worldwide, reported second quarter results today after the close. Revenues increased 21.2% year-over-year to $13.5 million. Net income rose to $878,000, or 15 cents per share, vs. $237,000 for the same period last year, an increase of 270%.

“We are pleased with Optical Cable Corporation’s financial performance during fiscal 2008 to date,” stated Neil Wilkin, president and CEO of Optical Cable. “Our strategies and investments are positively impacting the Company’s results as evidenced by year-over-year increases in net sales, gross profits and net income. We are also pleased that our share price is beginning to reflect Optical Cable’s solid performance and outstanding potential for continued shareholder value creation.

“We are particularly excited about our recent acquisition of SMP Data Communications, as it builds on our strong presence in the enterprise market. By acquiring this internationally respected and industry-leading innovator, we can now offer an integrated suite of high quality cabling and connectivity solutions,” stated Mr. Wilkin.

The acquisition of SMP Data Communications, a leading supplier of fiber optic and copper connectivity products for the data communications industry, was completed on May 30, 2008 for a purchase price of $11.5 million. SMP Data Communications manufactures over 2,000 products and racked up $21 million in sales in 2007. The transaction broadens Optical Cable’s product line and builds on its position as a leading provider of fiber optic cables in the enterprise market.

Shares of OCCF closed at $6.10 today and have traded in a 52-week range of $3.31 – $6.70. With just over 6 million shares outstanding, OCCF has a market cap of $37 million, which is less than 10% above the company’s tangible book value of $34 million. Shares are trading 10% higher after hours on light volume.

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