About Xantrex

Xantrex Technology Inc. (www.xantrex.com) is a world leader in the development, manufacturing and marketing of advanced power electronic products and systems for the renewable and mobile power markets. The company's products convert and control raw electrical power from any central, distributed, renewable, or backup power source into high-quality power required by electronic equipment and the electricity grid. Xantrex is headquartered in Vancouver, Canada, with facilities in the United States, Germany, Spain, England, and a joint venture in China. Xantrex is listed on the Toronto Stock Exchange under the ticker symbol "XTX".

About Schneider Electric

Global specialist in energy management, Schneider Electric offers integrated solutions making energy safe, reliable, efficient and productive in the energy & infrastructure, industry, data centres & networks, buildings and residential markets. With sales of 17.3 billion euro in 2007, the company's 120,000 employees in 102 countries help individuals & organisations make the most of their energy.

Forward looking statements

Note that this news release contains forward-looking statements related to Xantrex Technology Inc. Such statements reflect the current views of Xantrex with respect to future events and are subject to risks and uncertainties that could cause actual results to differ materially from those contemplated in these forward-looking statements.

Contacts:
Xantrex Technology Inc.
Investor Relations
(604) 422-2601
Email: investor.relations@xantrex.com
Website: www.xantrex.com

SOURCE: Xantrex Technology Inc.

mailto:investor.relations@xantrex.com
http://www.xantrex.com

Omnilux products deliver pure, optimized, narrowband light via a matrix of LEDs positioned to deliver light uniformly to the treatment area and include:

-- Omnilux Blue(TM), for the treatment of acne and actinic keratosis.

-- Omnilux Plus(TM), for the treatment of wound healing and skin rejuvenation.

-- Omnilux Revive(TM), which is used for skin rejuvenation, or in combination with Omnilux Blue for the treatment of acne or with Omnilux Plus for wound healing.

"Photo Therapeutics products will complement our current product lines and expand our product offering," said Jeff O'Donnell, president and CEO of PhotoMedex. "With our established sales force, we are well positioned to immediately and aggressively market these new products."

R. Rox Anderson, Professor at Harvard Medical School, Adjunct Professor at MIT and Director of the Wellman Center for Photomedicine at Massachusetts General Hospital, added, "PhotoMedex is poised for the future and uniquely qualified to lead the way in this rapidly developing field."

PhotoMedex and Photo Therapeutics products are available directly from PhotoMedex. For more information, visit www.photomedex.com or www.phototherapeutics.com.

About the proposed Photo Therapeutics Acquisition

On August 4, 2008, PhotoMedex, Inc. announced the signing of a definitive purchase agreement to acquire Photo Therapeutics Limited. The proposed acquisition is expected to close in the fourth quarter of 2008.

About Photo Therapeutics

Photo Therapeutics is a developer and provider of non-laser light devices and associated skin care products for the treatment of a range of clinical and aesthetic dermatological conditions. The company operates out of three primary business segments: Professional Devices, Home Use Devices and Skin Care Consumables. The company has a large professional installed base in physician offices, spas and salons. Photo Therapeutics' Omnilux and Lumiere product platforms have generated significant brand equity among professionals and end users given their proven efficacy, ease of use and noninvasive, pain-free regimes. The company's systems treat a wide range of dermatological conditions including acne, photodamage, skin rejuvenation, psoriasis, post-surgery wound healing and non-melanoma skin cancer.

LED technology is based on photo biomodulation and dynamics rather than photo-thermolysis. Photo Therapeutics has recently developed the Omnilux Clear-U and Omnilux New-U, two OTC consumer products addressing the acne and skin rejuvenation markets. The company's home-use products are designed to deliver the same clinical results as their well established professional products. To augment the effects of the Omnilux OTC product line, Photo Therapeutics provides a diverse line of photoceuticals, which generate incremental recurring revenue per end user. Photo Therapeutics' LED technology is protected by 18 patents and 20 applications, which the company believes will restrict other parties from developing similar products.

About PhotoMedex

PhotoMedex offers a wide range of products and services across multiple specialty areas, including dermatology, urology, gynecology, orthopedics and other surgical specialties. PhotoMedex is a leader in the development, manufacturing and marketing of medical laser products and services. PhotoMedex also develops and markets products based on its patented, clinically proven Copper Peptide technology for skin health, hair care and wound care. PhotoMedex sells directly to dermatologists, plastic and cosmetic surgeons, spas and salons and through licenses with strategic partners into the consumer market, including a long-term worldwide license agreement with Neutrogena(R), a Johnson & Johnson company. ProCyte brands include Neova(R), Ti-Silc(R), VitalCopper(R), Simple Solutions(R) and AquaSante(R).

Safe Harbor Statement

This press release contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These statements are based on managements' current expectations and beliefs and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. The forward-looking statements contained in this release include statements about future financial and operating results of Photo Therapeutics Limited and Photo Therapeutics, Inc. and PhotoMedex, Inc. ("PhotoMedex"), the proposed acquisition of Photo Therapeutics Limited and Photo Therapeutics, Inc. by PhotoMedex (the "Proposed Acquisition").

The following risks and factors, among others, could cause actual results to differ materially from those described in the forward-looking statements: risk that the Proposed Acquisition and the Proposed Financing will not be consummated or will not be consummated during the fourth quarter of 2008; risk that Photo Therapeutics' business may not be integrated successfully with that of PhotoMedex; that there will be substantial costs related to the Proposed Acquisition and the Proposed Financing; risk of subsequent default and forced repayment under the convertible notes to be issued in the Proposed Financing if any breach occurs related to these convertible notes; failure to receive the stockholder approvals described above related to the Proposed Acquisition and the Proposed Financing; risks relating to technology and product development, market acceptance, government regulation and regulatory approval processes, intellectual property rights and litigation, dependence on strategic partners, ability to obtain financing, competitive products and other risks identified in PhotoMedex's filings with Securities and Exchange Commission (the "SEC"). PhotoMedex is under no obligation to (and expressly disclaims any such obligation to) update or alter these forward-looking statements, whether as a result of new information, future events or otherwise.

In connection with seeking stockholder approval of the Proposed Financing, PhotoMedex intends to file proxy materials and other relevant documents with the SEC. PhotoMedex's stockholders are urged to read the proxy statement (and any other relevant documents filed) with the SEC when they become available, because they will contain important information about the Proposed Financing. PhotoMedex will mail the definitive proxy statement to its stockholders, who may also obtain free copies of the final proxy statement, as well as PhotoMedex's other filings, without charge, at the SEC's Web site (www.sec.gov) when they become available. Copies of the filings may also be obtained without charge from the Company by directing a request to: 147 Keystone Drive, Montgomeryville, Pennsylvania, 18936, Attention: General Counsel.

The Company's directors, executive officers and other members of management and employees may be deemed to be participants in the solicitation of proxies from stockholders in respect of the Proposed Financing. Information regarding PhotoMedex's directors and executive officers is available in the Company's 2007 Annual Report on Form 10-K, filed with the SEC on March 17, 2008, as amended by the Company's annual report on Form 10-K/A as filed with the SEC on May 8, 2008. Additional information regarding the interests of such potential participants will be included in the proxy statement and the other relevant documents filed with the SEC when they become available.

SOURCE: PhotoMedex, Inc.

Lippert/Heilshorn & Associates, Inc. 
Kim Sutton Golodetz (investors) 
212-838-3777 
Kgolodetz@lhai.com 
or 
Bruce Voss 
310-691-7100 
Bvoss@lhai.com 
or 
PhotoMedex, Inc. 
Dennis McGrath, CFO 
215-619-3287 
info@photomedex.com

    * Total net revenues were $57.6 million for the fiscal year ended
      2008, an increase of 4%, compared to $55.3 million for the
      fiscal year ended 2007;

    * Device networking net revenues were $53.7 million for the fiscal
      year ended 2008, an increase of 11%, compared to $48.6 million
      for the fiscal year ended 2007;

    * Implemented restructuring plans in June and July 2008 to
      optimize Lantronix's organizational structure and drive
      profitability and growth. Along with other expense reductions,
      these measures are expected to reduce annualized cash expenses
      by approximately $3.0 million;

    * Inventories, net, were $8.0 million as of June 30, 2008, a
      decrease of 27%, or $3.0 million, compared to $11.0 million as of
      June 30, 2007. Accounts payable were $7.7 million as of June 30,
      2008, a decrease of 30%, or $3.3 million, compared to $11.0
      million as of June 30, 2007;

    * Appointed Jerry Chase President and Chief Executive Officer.
      Lantronix also appointed Mr. Chase to the Company's Board of
      Directors in February 2008;

    * Appointed Lewis Solomon, Chairman of Harmonic Lightwave
      (Nasdaq:HLIT), as a member of its Board of Directors in May 2008;

    * Appointed Larry Sanders, director of Xantrex Technology, Inc, as
      a member of its Board of Directors in December 2007;

    * Appointed Thomas M. Wittenschlaeger, Chairman and CEO of Raptor
      Networks Technology, Inc., as a member of its Board of Directors
      in September 2007;

    * Appointed Bernhard Bruscha, founder and former Chairman of
      Lantronix, as a member of its Board of Directors in August 2007;

    * Appointed Curt Brown, former Executive Vice President of
      Research and Development of the Company, as a member of its
      Board of Directors in August 2007;

    * Announced ManageLinx(tm), a ground-breaking remote product service-
      enablement platform which provides secure remote access to
      firewall-protected devices and ties the Company's network
      connectivity and remote IT management technology solutions into
      one, complete offering;

    * Launched an award winning business partner program that rewards
      channel partners for their commitment to Lantronix and
      strengthens ongoing business relationships.

"We are pleased to report annual net revenue growth in what has been described as a soft U.S. economy, driven in large part by an 11% increase in device networking revenues and strong international growth," said Jerry Chase, President and CEO of Lantronix. "Demand continues to be driven globally by customers seeking to differentiate their products, deploy new applications and generate new revenue streams."

"The restructuring plans we implemented this summer streamlined our organization enabling us to be more responsive to customers, drive profitability and focus on our responsibilities to our shareholders,'' said Jerry Chase, President and CEO. "This difficult, but necessary step is a reflection of our strong commitment to non-GAAP profitability and positive cash flow. We can now focus our efforts on improving and expanding our product lines and accelerating our growth and profitability."

Financial Results for the Fiscal Year Ended June 30, 2008

Total net revenues were $57.6 million for the fiscal year ended 2008, an increase of 4%, compared to $55.3 million for the fiscal year ended 2007. Net loss computed in accordance with U.S. generally accepted accounting principles (GAAP) was ($2.5) million, or ($0.04) per share, for the fiscal year ended 2008, compared to GAAP net loss of ($1.7) million, or ($0.03) per share, for the fiscal year ended 2007. The GAAP net loss for the fiscal year ended 2008 included a restructuring charge of $757,000. The GAAP net loss for the fiscal year ended 2007 included a gain on the sale of a long-term investment of $700,000. In addition to GAAP results, Lantronix reports adjusted net income (loss), referred to as "non-GAAP net income (loss)." A discussion of Lantronix's use of these non-GAAP financial measures is set forth below. Reconciliations of GAAP net income to non-GAAP net income for the fiscal quarters and years ended June 30, 2008 and 2007, respectively, appear in the financial statements portion of this release.

Non-GAAP net income computed with the adjustments to GAAP reporting set forth in the attached reconciliation, was $97,000 for the fiscal year ended 2008 compared to a non-GAAP net loss of ($468,000) for the fiscal year ended 2007.

Net revenue for the Americas region was $33.2 million for the fiscal year ended 2008, a decrease of 5%, compared to $35.0 million for the fiscal year ended 2007. Net revenue for the Europe, Middle East and Africa (EMEA) region was $16.6 million for the fiscal year ended 2008, an increase of 19%, compared to $14.0 million for the fiscal year ended 2007. Net revenue for the Asia Pacific region was $7.8 million for the fiscal year ended 2008, an increase of 22%, compared to $6.4 million for the fiscal year ended 2007. As a percentage of net revenues, the Americas, EMEA and Asia Pacific regions were 58%, 29% and 13%, respectively, for the fiscal year ended 2008, compared to 63%, 25% and 12%, respectively, for the fiscal year ended 2007.

Gross profit margin was 50.5% for the fiscal year ended 2008, compared to 51.2% for the fiscal year ended 2007. The decrease in gross profit margin percent was primarily attributable to an increase in certain inventory reserves in connection with a review of our product offerings as part of our efforts to simplify our product portfolio by discontinuing slow-moving and non-strategic products.

Selling, general and administrative expense was $23.9 million for the fiscal year ended 2008 compared to $23.2 million for the fiscal year ended 2007.

Research and development expense was $6.9 million for the fiscal year ended 2008 compared to $7.4 million for the fiscal year ended 2007.

Total operating expenses were $31.7 million for the fiscal year ended 2008, compared to $30.8 million for the fiscal year ended 2007. Operating expenses for the fiscal year ended 2008 included a restructuring charge of $757,000.

Highlights for the Fourth Fiscal Quarter ended June 30, 2008

    * Total net revenues were $14.7 million for the fourth fiscal
      quarter of 2008, compared to $14.7 million for the fourth fiscal
      quarter of 2007;

    * Device networking net revenues were $14.1 million for the fourth
      fiscal quarter of 2008, an increase of 9%, compared to $12.9
      million for the fourth fiscal quarter of 2007;

    * Launched updated website, which offers a simplified interface to
      help visitors better understand the full range of Lantronix's
      products and platforms. New sales tools, including a library of
      product marketing videos, case studies and tutorials, are
      available to clearly explain the benefits of Lantronix
      technology, including maximized efficiencies, improved processes
      and greater business intelligence based on real-time information;

    * Announced the availability of "The Maturity of Remote Product
      Service," a research report recently published by Aberdeen
      Group, a Harte-Hanks Company (NYSE:HHS). Sponsored by Lantronix
      and validating the market need for our ManageLinx solution,
      Aberdeen's benchmark survey of 150 customers reported that in an
      extremely competitive service landscape, best-in-class service
      firms are turning to remote product solutions (RPS) to increase
      the efficiency of their service organizations, to deliver better
      service and to increase customer availability while more
      efficiently managing service-related costs.

Financial Results for the Fourth Fiscal Quarter ended June 30, 2008

Net revenues were $14.7 million for the fourth fiscal quarter of 2008 compared to $14.7 million for the fourth fiscal quarter of 2007. GAAP net loss was ($1.4) million, or ($0.02) per share, for the fourth fiscal quarter of 2008 compared to a GAAP net loss of ($89,000), or ($0.00) per share, for the fourth fiscal quarter of 2007. The GAAP net loss for the fourth fiscal quarter of 2008 included a restructuring charge of $757,000.

Non-GAAP net loss computed with the adjustments to GAAP reporting set forth in the attached reconciliation, was ($70,000) for the fourth fiscal quarter of 2008, compared to non-GAAP net income of $363,000 for the fourth fiscal quarter of 2007.

Net revenue for the Americas region was $8.0 million for the fourth fiscal quarter of 2008, a decrease of 15%, compared to $9.5 million for the fourth fiscal quarter of 2007. Net revenue for EMEA region was $4.9 million for the fourth fiscal quarter of 2008, an increase of 30%, compared to $3.8 million for the fourth fiscal quarter of 2007. Net revenue for the Asia Pacific region was $1.8 million for the fourth fiscal quarter of 2008, an increase of 23%, compared to $1.4 million for the fourth fiscal quarter of 2007. As a percentage of net revenues, the Americas, EMEA and Asia Pacific regions were 55%, 33% and 12%, respectively, for the fourth fiscal quarter of 2008, compared to 64%, 26% and 10%, respectively, for the fourth fiscal quarter of 2007.

Gross profit margin was 50.5% for the fourth fiscal quarter of 2008, compared to 50.8% for the fourth fiscal quarter of 2007.

Selling, general and administrative expense was $6.3 million for the fourth fiscal quarter of 2008 compared to $5.7 million for the fourth fiscal quarter of 2007.

Research and development expense was $1.7 million for the fourth fiscal quarter of 2008 compared to $1.9 million for the fourth fiscal quarter of 2007.

Total operating expenses were $8.8 million for the fourth fiscal quarter of 2008, compared to $7.6 million for the fourth fiscal quarter of 2007. Operating expenses for the fourth fiscal quarter of 2008 included a restructuring charge of $757,000.

Balance Sheet Highlights

Cash and cash equivalents were $7.4 million as of June 30, 2008, a decrease of $148,000 compared to $7.6 million as of June 30, 2007.

Accounts receivable, net, were $4.2 million as of June 30, 2008, an increase of $755,000 compared to $3.4 million as of June 30, 2007.

Inventories, net, were $8.0 million as of June 30, 2008, a decrease of $3.0 million compared to $11.0 million as of June 30, 2007.

Accounts payable were $7.7 million as of June 30, 2008, a decrease of $3.3 million compared to $11.0 million as of June 30, 2007.

Working capital was $5.7 million as of June 30, 2008, an increase of $99,000 compared to $5.6 million as of June 30, 2007.

Other Highlights

During September 2008, Lantronix announced that it entered into an amendment to its Loan and Security Agreement (the "Loan Agreement") with Silicon Valley Bank, which provides for a three-year $2 million Term Loan and a two-year $3 million Revolving Credit Facility.

"This Loan Agreement exemplifies our strong relationship with Silicon Valley Bank and reflects our commitment to non-GAAP profitability and positive cash flow," said Reagan Y. Sakai, Chief Financial Officer. "Our working capital initiatives have resulted in annual reductions to net inventories and accounts payable of $3.0 million and $3.3 million, respectively, and the addition of the Term Loan is a logical step towards meeting our anticipated working capital requirements."

NASDAQ Listing Compliance

On June 25, 2008, the Company received a letter from The NASDAQ Stock Market stating that the Company has been provided an additional 180 calendar days, or until December 22, 2008 to regain compliance with the $1.00 minimum per share requirement for continued listing as set forth in NASDAQ Marketplace Rule 4310(c)(4) (the "Rule"). The NASDAQ letter notes that while Lantronix's common stock (the "Common Stock") had not regained compliance with the Rule within the 180 calendar days granted the Company in the initial letter from The NASDAQ Stock Market on December 26, 2007, the Company meets all other initial listing criteria for The NASDAQ Capital Market as set forth in Marketplace Rule 4310(c)(8)(D) and is therefore eligible for an extension.

The NASDAQ letter has no effect on the listing of the Common Stock at this time. If the Company is not able to demonstrate compliance with the Rule by December 22, 2008 Lantronix will be notified that its common stock will be delisted. At that time, the Company may appeal the determination to delist its common stock.

Discussion of Non-GAAP Financial Measures

Non-GAAP net income (loss) consists of net income (loss) excluding share-based compensation, depreciation and amortization, litigation settlement, interest income (expense), other income (expense), income tax provision (benefit), as well as charges and gains that are driven primarily by discrete events that management does not consider to be directly related to the company's core operating performance. Lantronix believes that the presentation of non-GAAP net income (loss) provides important supplemental information to management and investors regarding financial and business trends relating to the company's financial condition and results of operations. The non-GAAP financial measures disclosed by the Company should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP, and the financial results calculated in accordance with GAAP and reconciliations to those financial statements should be carefully evaluated. The non-GAAP financial measures used by the Company may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies. The Company has provided reconciliations of the non-GAAP financial measures to the most directly comparable GAAP financial measures.

Conference Call and Webcast

Management will conduct a conference call with simultaneous webcast on Wednesday, September 17, 2008 at 5:00 p.m. Eastern time. President and Chief Executive Officer Jerry Chase and Chief Financial Officer Reagan Sakai will be on the call to discuss the fiscal year and fourth fiscal quarter results and answer questions.

Interested parties may participate in the conference call by dialing 800-322-2803 (International dial-in 617-614-4925) and entering passcode 79664432. The live webcast of the conference call may be accessed by visiting About Us: Investor Relations: Presentations at the Lantronix web site at http://www.lantronix.com.

A telephonic replay of the conference call will be available through October 17, 2008 by dialing 888-286-8010 (international dial-in 617-801-6888) and entering passcode 93208588. The webcast will be archived on the Company's web site for twelve months.

About Lantronix

Lantronix, Inc. (Nasdaq:LTRX) is a global leader of secure communication technologies that simplify remote access, management, and control of virtually any electronic device. Our innovative solutions enable businesses to make better decisions based on real-time information and help gain a competitive advantage by generating new revenue streams, improving productivity and increasing efficiency and profitability. Easy to integrate and deploy, Lantronix product families include: DeviceLinx(tm) -- remote connectivity and control solutions for electronic equipment via the Internet; ManageLinx(tm) -- a powerful application services platform providing secure remote access to firewall-protected equipment; and SecureLinx(tm) -- providing secure, remote management of IT equipment via the Internet. With nearly 20 years of networking experience, Lantronix solutions are used in every major vertical market including security, industrial and building automation, medical, transportation, retail/POS, financial, government, consumer electronics/appliances, IT/data center, and pro-AV/signage. The company's headquarters are located in Irvine, Calif. For more information, visit www.lantronix.com http://www.lantronix.com/

The Lantronix, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=1735

This news release contains forward-looking statements, including statements concerning our future business plans and focus. These forward-looking statements are based on current management expectations and are subject to risks and uncertainties that could cause actual reported results and outcomes to differ materially from those expressed in the forward-looking statements. Factors that could cause our expectations and reported results vary, include, but are not limited to: final accounting adjustments and results; quarterly fluctuations in operating results; our ability to identify and profitably develop new products that will be attractive to its target markets, including products in our device networking business and the timing and success of new product introductions; changing market conditions and competitive landscape; government and industry standards; market acceptance of our products by our customers; pricing trends; actions by competitors; future revenues and margins; changes in the cost or availability of critical components; unusual or unexpected expenses; and cash usage including cash used for product development or strategic transactions; and other factors that may affect financial performance. For a more detailed discussion of these and other risks and uncertainties, see our SEC filings, including our Quarterly Report on Form 10-Q for the quarter ended March 31, 2008 and our Annual Report on Form 10-K for the year ended June 30, 2007. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof, and the Company undertakes no obligation to update these forward-looking statements to reflect subsequent events or circumstances.

                            LANTRONIX, INC.
              Unaudited Consolidated Statements of Operations
                   (In thousands, except per share data)

                              Three Months Ended      Years Ended
                                   June 30,             June 30,
                              ------------------  ------------------
                                2008      2007      2008      2007
                              --------  --------  --------  --------

 Net revenue (1)              $ 14,714  $ 14,710  $ 57,586  $ 55,306
 Cost of revenue                 7,284     7,241    28,518    26,964
                              --------  --------  --------  --------
 Gross profit                    7,430     7,469    29,068    28,342
                              --------  --------  --------  --------
 Operating expenses:
  Selling, general and
   administrative                6,300     5,687    23,892    23,243
  Research and development       1,711     1,864     6,944     7,362
  Restructuring charge             757        --       757        --
  Litigation settlement cost        --        --        --        90
  Amortization of purchased
   intangible assets                18        18        72        72
                              --------  --------  --------  --------
 Total operating expenses        8,786     7,569    31,665    30,767
                              --------  --------  --------  --------
 Loss from operations           (1,356)     (100)   (2,597)   (2,425)
 Interest expense, net             (31)       (9)     (150)      (13)
 Other income, net                   5        16       120       749
                              --------  --------  --------  --------
 Loss before income taxes       (1,382)      (93)   (2,627)   (1,689)
 Provision (benefit) for
  income taxes                      (8)       (4)     (119)       34
                              --------  --------  --------  --------
 Net loss                     $ (1,374) $    (89) $ (2,508) $ (1,723)
                              ========  ========  ========  ========

 Net loss per share (basic
  and diluted)                $  (0.02) $  (0.00) $  (0.04) $  (0.03)
                              ========  ========  ========  ========

 Weighted average shares
  (basic and diluted)           60,312    59,879    60,134    59,603
                              ========  ========  ========  ========

 (1) Includes net revenue
      from related party      $    276  $    283  $    974  $  1,073
                              ========  ========  ========  ========

                            LANTRONIX, INC.
                 Unaudited Consolidated Balance Sheets
            (In thousands, except share and per share data)

                                            June 30,   June 30,
                                              2008       2007
                                           ---------  ---------


 Assets
 Current Assets:
  Cash and cash equivalents                $   7,434  $   7,582
  Marketable securities                           --         97
  Accounts receivable (net of allowance
   for doubtful accounts of $173 and $105
   at June 30, 2008 and 2007,
   respectively)                               4,166      3,411
  Inventories, net                             8,038     10,981
  Contract manufacturers' receivable             676      1,270
  Prepaid expenses and other current
   assets                                        566        578
                                           ---------  ---------
   Total current assets                       20,880     23,919

 Property and equipment, net                   2,271      1,911
 Goodwill                                      9,488      9,488
 Purchased intangible assets, net                382        485
 Officer loans (net of allowance of
  $3,115 at June 30, 2008 and 2007)               94        129
 Other assets                                     50         26
                                           ---------  ---------
  Total assets                             $  33,165  $  35,958
                                           =========  =========

 Liabilities and stockholders' equity
 Current Liabilities:
  Accounts payable                         $   7,684  $  11,017
  Accrued payroll and related expenses         2,203      1,993
  Warranty reserve                               342        446
  Restructuring reserve                          744         --
  Accrued settlements                             --      1,068
  Other current liabilities                    4,221      3,808
                                           ---------  ---------
   Total current liabilities                  15,194     18,332
 Long-term liabilities                           210        256
 Long-term capital lease obligations             515        142

 Commitments and contingencies

 Stockholders' equity:
 Preferred stock, $0.0001 par value;
  5,000,000 shares authorized; none issued
  and outstanding                                 --         --
 Common stock, $0.0001 par value;
  200,000,000 shares authorized;
  60,312,363 and 59,879,488 shares issued
  and outstanding at June 30, 2008 and
  2007, respectively                               6          6
 Additional paid-in capital                  187,626    184,953
 Accumulated deficit                        (170,907)  (168,173)
 Accumulated other comprehensive income          521        442
                                           ---------  ---------
  Total stockholders' equity                  17,246     17,228
                                           ---------  ---------
  Total liabilities and stockholders'
   equity                                  $  33,165  $  35,958
                                           =========  =========


                                  LANTRONIX, INC.
                   Unaudited Reconciliation of Non-GAAP Adjustments
                                  (In thousands)

                        Three Months Ended        Years Ended
                             June 30,              June 30,
                        ------------------    ------------------
                          2008       2007       2008       2007
                        -------    -------    -------    -------

 GAAP net loss          $(1,374)   $   (89)   $(2,508)   $(1,723)
  Non-GAAP adjustments:
   Cost of revenues:
    Share-based
     compensation            20         28         99         89
    Depreciation and
     amortization            38         17        156         75
                        -------    -------    -------    -------
   Total adjustments to
    cost of revenues         58         45        255        164
                        -------    -------    -------    -------
   Selling, general and
    adminstrative:
    Share-based
     compensation           259        219        846        922
    Depreciation and
     amortization            97         77        368        289
                        -------    -------    -------    -------
   Total adjustments to
    selling, general and
    administrative          356        296      1,214      1,211
                        -------    -------    -------    -------
   Research and
    development:
    Share-based
     compensation            81         93        341        379
    Depreciation and
     amortization            16         11         55         41
                        -------    -------    -------    -------
   Total adjustments to
    research and
    development              97        104        396        420
                        -------    -------    -------    -------
   Restructuring charge     757         --        757         --
   Litigation settlement
    cost                     --         --         --         90
   Amortization of
    purchased intangible
    assets                   18         18         72         72
   Interest income
    (expense), net           31          9        150         13
   Other income
    (expense), net           (5)       (16)      (120)(1)   (749)(2)
   Provision (benefit)
    for income taxes         (8)        (4)      (119)        34
                        -------    -------    -------    -------
 Total non-GAAP
  adjustments             1,304        452      2,605      1,255
                        -------    -------    -------    -------
 Non-GAAP net income
  (loss)                $   (70)   $   363    $    97    $  (468)
                        =======    =======    =======    =======

 (1)  Includes other income of $104,000 related to a gain on sale
      of investment.
 (2)  Includes other income of $700,000 related to a gain on sale
      of investment.

This news release was distributed by GlobeNewswire, www.globenewswire.com

SOURCE: Lantronix

Lantronix, Inc.
          Investor Relations 
          Reagan Y. Sakai, Chief Financial Officer
          (949) 453-3990

Previously, Ovitt held the positions of National Sales Manager and Vice President, Sales, at Heart Interface, Inc., an RV inverter manufacturer that was later acquired by Xantrex. He also served as the Director of Marketing for Michigan-based United Solar Systems.

"Smitty Ovitt possesses proven expertise in building sales teams and distribution channels in the international energy markets, and he brings sales leadership and operational skills that will help Evergreen Solar rapidly achieve broad market penetration in the Asia Pacific markets -- a key region for our global expansion," said Terry Bailey, Evergreen Solar's senior vice president, marketing & sales. "Smitty has a long track record of managing regional distribution and building stellar sales organizations, and he understands the value that Evergreen Solar's String Ribbon panels can deliver to emerging energy markets."

Ovitt holds a Bachelor of Arts degree from the University of California, Santa Barbara. He is a member of the Board of Directors of Solar Washington, a state chapter of the American Solar Energy Society and previously served on the board of the California Solar Energy Industries Association.

About Evergreen Solar, Inc.

Evergreen Solar, Inc. develops, manufactures and markets STRING RIBBON(TM) solar power products using its proprietary, low-cost wafer technology. The company's patented wafer manufacturing technology uses significantly less polysilicon than conventional processes. Evergreen Solar's products provide reliable and environmentally clean electric power for residential and commercial applications globally. For more information about the company, please visit www.evergreensolar.com.

Safe Harbor Statement

This press release contains forward-looking statements made pursuant to the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934. Any statements contained in this press release that are not strictly historical statements constitute forward-looking statements, including statements regarding the Evergreen Solar's ability to establish a sales team and distribution channel that can rapidly achieve broad market penetration in Asia Pacific markets and our ability to expand globally. These statements are neither promises nor guarantees, and involve risks and uncertainties that could cause actual results to differ materially from such forward-looking statements, including risks associated with the company's ability to successfully manufacture and sell its products; uncertainties related to government regulations, subsidies and incentives; risks from various economic factors such fluctuations in currency exchange rates and other risks and uncertainties identified in the company's filings with the Securities and Exchange Commission. Evergreen Solar disclaims any obligation to update or revise any forward-looking statements to reflect changes in company expectations, or in events, conditions or circumstances on which such statements may be based, or that may affect the likelihood that actual results will differ from those set forth in the forward-looking statements.

SOURCE: Evergreen Solar

Contacts: 
Evergreen Solar, Inc. 
Chris Lawson, 508-357-2221 X7214 
Director Marketing Communications 
clawson@evergreensolar.com 
or 
Media: 
Elevate Communications 
Jim Connelly, 617-861-3654 
Account Supervisor 
jconnelly@elevatecom.com