TORONTO, ONTARIO, Oct 08, 2008 (MARKET WIRE via COMTEX) ----Firan Technology Group Corporation (TSX: FTG) today announced the third quarter 2008 results for the period ending August 29, 2008.

- 13% sales growth over Q3, 2007

- Profit of $190,000 or $0.01 per share including Filtran restructuring and R&D investments.

- Profit of $436,000 or $0.02 per share excluding Filtran restructuring and R&D investments

- Positive cash flow from operations of $951,000

We are extremely pleased with the sales growth FTG has experienced and our qualification at many key new customers is expected to enable us to maintain our growth rate in the future. Our focus on the aerospace and defence market is proving to be a good decision as this market continues to be robust," commented Brad Bourne, President and CEO, FTG Corporation. He added, "Our strategy of increasing the technical capabilities of the Corporation to address the complete range of products required by our customers, through internal R&D and acquisition, is also paying off. This year, our acquisition of Filtran Microcircuits has accelerated FTG's penetration of high speed, radio frequency circuit boards and brought many new customers yielding immediate benefits to FTG".

 Third Quarter Results: (three
   months ended August 29, 2008 compared with three months ended August 31, 2007) Q3 2008 Q3 2007 ------- ------- Sales $15,748,000
   $13,895,000 Gross Margin 3,559,000 3,050,000 ------------ ------------ Earnings Before Undernoted Items(1) 397,000 (366,000)
   ------------ ------------ SR&ED Tax Recovery - (86,000) Filtran R&D 129,000 - Filtran Operating Losses - - Filtran
   Restructuring 117,000 - Tax (Recovery) (39,000) (98,000) ------------ ------------ Net Earnings / (Loss) After Tax 190,000
   (182,000) ------------ ------------ Earnings / (Loss) per share - basic & diluted $0.01 ($0.01) Year to Date Results:
   (nine months ended August 29, 2008 compared with nine months ended August 31, 2007) YTD 2008 YTD 2007 -------- -------- Sales
   $45,804,000 $43,069,000 Gross Margin 10,844,000 10,250,000 ------------ ------------ Earnings Before Undernoted Items(1) 476,000
   (42,000) ------------ ------------ SR&ED Tax Recovery - (1,049,000) Filtran R&D 503,000 - Filtran Operating Losses
   472,000 - Filtran Restructuring 325,000 - Tax (Recovery) Expense (173,000) 365,000 ------------ ------------ Net (Loss) /
   Earnings After Tax (651,000) 642,000 ------------ ------------ (Loss) / Earnings per share - basic ($0.04) $0.04 - diluted
   ($0.04) $0.03 (1) Earnings Before Undernoted Items is not a measure recognized under Canadian generally accepted accounting
   principles ("GAAP"). Management believes that this measure is important to many of the Corporation's shareholders, creditors
   and other stakeholders. 

Net sales increased by $1,853,000 or 13%, from $13,895,000 in the third quarter of 2007 to $15,748,000 in the third quarter of 2008. Excluding the impact of the strengthening Canadian dollar versus the US dollar, sales were up approximately $2.3M or 16% over the same period last year.

The Circuits Segment sales were up $1.9M or 17% over the same period last year. Excluding the acquisition of Filtran, sales were up $1.2M or 11%. The acquisition of Filtran increased sales during the quarter by $0.7M. All of these sales were generated from the existing FTG sites as Filtran was closed at the end of March, 2008. The transition continues to progress well. All of the Filtran equipment has been moved to FTG's facilities and all critical items are operational. Year-to-date FTG has been qualified at a number of key new accounts as a result of this acquisition including Merrimac Industries, Lockheed Martin Corporation, L-3 Narda, Raytheon, Macom, and many others. FTG's share of high speed and RF printed circuit boards has increased dramatically this year and should continue to increase as more qualifications are completed and some key programs ramp up.

For the Aerospace segment, sales in the third quarter, 2008 were $3,002,000 compared to $3,018,000 in Q3, 2007. Sales in the third quarter 2007 were unusually high due to a surge in shipments at the end of the quarter just ahead of the move to the new facility. The business continues to see strong demand from existing and new customers.

For the year-to-date, the Corporation's sales are up $2.7M or 6% versus the same period last year. Excluding the impact of the exchange rate, sales are up 15% year over year.

FTG continued to experience strong bookings in Q3, 2008. Total bookings in the quarter were over $16M and the book-to-bill for the Corporation was 1.04:1. The book-to-bill was 0.97:1 for FTG Circuits and 1.32:1 for FTG Aerospace. The Aerospace figure is impacted by the timing of large individual orders and this typically smoothes out over a full year period. Total backlog of orders at the end of Q3 was $16M. FTG continues to add customers and reduce its dependence on any one customer.

Gross margin increased by $509,000 to $3,559,000 or 23% of sales for the third quarter of 2008 as compared with $3,050,000 or 22% of sales in the third quarter of 2007. The increase in gross margin is directly attributable to the higher sales at FTG and the ongoing focus on higher technology products offset by the impact of the exchange rate and material cost increases.

Net earnings for the third quarter of 2008 were $190,000 or $0.01 per share ($0.01 per diluted share) as compared to a loss of $182,000 or a loss of $0.01 per share (loss of $0.01 per diluted share) in the third quarter of 2007. FTG continues to invest in R&D to expand its product offerings and capture new customers and programs. R&D costs in Q3 2008 were $715,000 including R&D related to Filtran products versus $984,000 in Q3, 2007. Included in the third quarter 2008 was $117,000 in restructuring costs related to the Filtran acquisition. Included in Q3, 2007 was a recovery of $86,000 for research and development costs. Year to date, net loss is $651,000 versus a profit of $642,000 for the same period last year.

FTG had many accomplishments in Q3 2008 that continue to improve the Corporation and position it for the future, including:

- The continued transition of the equipment and customers of Filtran Microcircuits, Inc. to existing FTG facilities

- A reduction of sales to the United States from 86% in Q3, 2007 to 74% in Q3, 2008, reducing the Corporation's exposure to the US dollar.

FTG had positive cash flow from operations of $951,000 in Q3, 2008 versus a negative of $68,000 in Q3, 2007. This improvement is due to improved results from operations and improved working capital management across the Corporation. Specifically, Accounts Receivable were down $65,000 versus Q3 2007 while sales were up 13%. Similarly, inventories are down $265,000 or 3% versus Q3, 2007. Since completing the acquisition of Filtran in Q1, 2008, FTG's total bank debt has been reduced by $978,000, even while incurring $828,000 Filtran R&D and restructuring costs in Q2 and Q3 of this year.

"To continue to improve our financial performance, FTG remains focused on achieving Operational Excellence. Our customers demand high quality products, on time delivery and outstanding customer service. FTG has won awards from Rockwell and General Dynamics so far this year. We will relentlessly strive for award winning performance from across our customer base", added Mr. Brad Bourne, President and CEO.

"Both FTG facilities in Canada have overcome the strength of the Canadian dollar through significant top line growth and have performed well again in our third quarter," stated Joe Ricci, Vice President and CFO, FTG Corporation. He added, "We have been pleased with our positive cash flow over the past six months, which is the result of improved operational performance and our focus on controlling our working capital. This effort is creating a stronger balance sheet and could enable FTG to undertake future strategic investments to further strengthen the Corporation's performance."

The Corporation will host a live conference call on Thursday October 9, 2008 at 8:30am (EDT) to discuss the results of the third quarter of 2008.

Anyone wishing to participate in the call should dial 416-641-6136 or 1-866-223-7781 and identify that you are calling into the FTG conference call. The Chairperson is Brad Bourne. A replay of the call will be available until October 23, 2008 and will be available on the FTG website at www.ftgcorp.com. The number to call for a rebroadcast is 416-695-5800 or 1-800-408-3053, passcode 3271444. ABOUT FIRAN TECHNOLOGY GROUP CORPORATION

FTG is an aerospace and defense electronics product and subsystem supplier to the North American marketplace. FTG has two operating units:

FTG Circuits is a manufacturer of high technology/high reliability printed circuit boards. Our customers are leaders in the aviation, defense, and high technology industries. FTG Circuits has operations in Toronto, Ontario and Chatsworth, California.

FTG Aerospace manufactures illuminated cockpit panels, keyboards and sub-assemblies for original equipment manufacturers of avionics products as well as airframe manufacturers located in Toronto, Ontario.

The Corporation's shares are traded on the Toronto Stock Exchange under the symbol FTG.

FORWARD-LOOKING STATEMENTS

This news release contains certain forward-looking statements. These forward-looking statements are related to, but not limited to, FTG's operations, anticipated financial performance, business prospects and strategies. Forward-looking information typically contains words such as "anticipate", "believe", "expect", "plan" or similar words suggesting future outcomes. Such statements are based on the current expectations of management of the Corporation and inherently involve numerous risks and uncertainties, known and unknown, including economic factors and the Corporation's industry, generally. The preceding list is not exhaustive of all possible factors. Such forward-looking statements are not guarantees of future performance and actual events and results could differ materially from those expressed or implied by forward-looking statements made by the Corporation. The reader is cautioned to consider these and other factors carefully when making decisions with respect to the Corporation and not place undue reliance on forward-looking statements. Other than as may be required by law, FTG disclaims any intention or obligation to update or revise any such forward-looking statements, whether as a result of new information, future events or otherwise.

Additional information can be found at the Corporation's website www.ftgcorp.com.

 FIRAN TECHNOLOGY GROUP CORPORATION Interim Consolidated Balance Sheets
   -------------------------------------------------------------------------- --------------------------------------------------------------------------
   August 29, 2008 November 30, 2007 (in thousands of dollars) (unaudited) (audited) --------------------------------------------------------------------------
   -------------------------------------------------------------------------- ASSETS CURRENT Cash $ 114 $ 234 Accounts receivable
   11,368 10,542 Taxes recoverable 532 302 Inventories 8,702 7,621 Prepaid expenses 357 412 --------------------------------------------------------------------------
   21,073 19,111 CAPITAL ASSETS 7,366 7,757 FUTURE INCOME TAXES - 34 GOODWILL AND INTANGIBLES (Note 5) 4,560 3,904 --------------------------------------------------------------------------
   $ 32,999 $ 30,806 -------------------------------------------------------------------------- --------------------------------------------------------------------------
   LIABILITIES CURRENT Bank indebtedness (Note 6) $ 2,537 $ 400 Accounts payable and accrued liabilities 7,967 7,613 Current
   portion of long-term debt (Note 6) 1,512 1,368 --------------------------------------------------------------------------
   12,016 9,381 LONG-TERM DEBT (Note 6) 5,703 5,900 --------------------------------------------------------------------------
   17,719 15,281 -------------------------------------------------------------------------- CONTINGENCIES (Note 13) SHAREHOLDERS'
   EQUITY Share capital Common shares 12,681 12,681 Preferred shares 2,218 2,218 Contributed surplus (Note 7(c)) 8,037 7,939
   Deficit (7,135) (6,484) Accumulated other comprehensive loss (521) (829) --------------------------------------------------------------------------
   15,280 15,525 -------------------------------------------------------------------------- $ 32,999 $ 30,806 --------------------------------------------------------------------------
   -------------------------------------------------------------------------- See accompanying notes FIRAN TECHNOLOGY GROUP CORPORATION
   Interim Consolidated Statements of Earnings (Loss) ----------------------------------------------------------------------------
   ---------------------------------------------------------------------------- Three Months Ended Nine Months Ended ------------------------------------------------
   ------------------------- ------------------------------------------------ ------------------------- (in thousands of dollars
   August 29, August 31, August 29, August 31, except per share 2008 2007 2008 2007 amounts) (unaudited) (unaudited) (unaudited)
   (unaudited) ---------------------------------------------------------------------------- ----------------------------------------------------------------------------
   SALES $ 15,748 $ 13,895 $ 45,804 $ 43,069 COST OF SALES 12,189 $ 10,845 34,960 32,819 ----------------------------------------------------------------------------
   3,559 3,050 10,844 10,250 ---------------------------------------------------------------------------- EXPENSES Selling, general
   and administrative 1,687 1,555 5,803 5,282 Research and development costs (Note 8) 586 984 2,409 2,373 Filtran research and
   development costs (Note 8) 129 - 503 - Recovery of research and development costs (Note 8) - (86) - (1,049) Amortization of
   capital assets 719 724 2,100 2,211 Interest expense on long-term debt 124 147 387 413 Interest expense on short-term debt
   46 6 141 13 Restructuring costs (Note 9) 117 - 325 - ----------------------------------------------------------------------------
   3,408 3,330 11,668 9,243 ---------------------------------------------------------------------------- EARNINGS (LOSS) BEFORE
   INCOME TAXES 151 (280) (824) 1,007 INCOME TAXES (RECOVERY) (Note 10) (39) (98) (173) 365 ----------------------------------------------------------------------------
   ---------------------------------------------------------------------------- NET EARNINGS (LOSS) $ 190 $ (182) $ (651) $ 642
   ---------------------------------------------------------------------------- ----------------------------------------------------------------------------
   NET EARNINGS (LOSS) PER SHARE Basic (Note 7(b)) $ 0.01 $ (0.01) $ (0.04) $ 0.04 Diluted (Note 7(b)) $ 0.01 $ (0.01) $ (0.04)
   $ 0.03 ---------------------------------------------------------------------------- ----------------------------------------------------------------------------
   See accompanying notes. FIRAN TECHNOLOGY GROUP CORPORATION Interim Consolidated Statements of Shareholders' Equity Nine Months
   Ended -------------------------------------------------------------------------- --------------------------------------------------------------------------
   (in thousands of dollars) Common Preferred Total Contributed (unaudited) Shares Shares Capital Surplus --------------------------------------------------------------------------
   -------------------------------------------------------------------------- Balance, November 30, 2007 $ 12,681 $ 2,218 $ 14,899
   $ 7,939 -------------------------------------------------------------------------- --------------------------------------------------------------------------
   Net loss Other comprehensive loss: Foreign currency translation adjustments (Note 14) Comprehensive loss Stock based compensation
   98 -------------------------------------------------------------------------- --------------------------------------------------------------------------
   Balance, August 29, 2008 $ 12,681 $ 2,218 $ 14,899 $ 8,037 --------------------------------------------------------------------------
   -------------------------------------------------------------------------- --------------------------------------------------------------------------
   -------------------------------------------------------------------------- Accumu- lated Other Compre- Total Total hensive
   Deficit Share- (in thousands of dollars) Loss and holders' (unaudited) Deficit ("AOCL") AOCL Equity --------------------------------------------------------------------------
   -------------------------------------------------------------------------- Balance, November 30, 2007 $ (6,484) $ (829) $
   (7,313) $ 15,525 -------------------------------------------------------------------------- --------------------------------------------------------------------------
   Net loss (651) (651) (651) Other comprehensive loss: Foreign currency translation adjustments (Note 14) 308 308 308 ----------------------
   ---------------------- Comprehensive loss (343) (343) ---------------------- ---------------------- Stock based compensation
   98 -------------------------------------------------------------------------- --------------------------------------------------------------------------
   Balance, August 29, 2008 $ (7,135) $ (521) $ (7,656) $ 15,280 --------------------------------------------------------------------------
   -------------------------------------------------------------------------- --------------------------------------------------------------------------
   -------------------------------------------------------------------------- (in thousands of dollars) Common Preferred Total
   Contributed (unaudited) Shares Shares Capital Surplus --------------------------------------------------------------------------
   -------------------------------------------------------------------------- Balance, November 30, 2006 $ 12,681 $ 2,218 $ 14,899
   $ 7,804 -------------------------------------------------------------------------- --------------------------------------------------------------------------
   Net earnings Other comprehensive income: Foreign currency translation adjustments (Note 14) Comprehensive income Stock based
   compensation 109 -------------------------------------------------------------------------- --------------------------------------------------------------------------
   Balance, August 31, 2007 $ 12,681 $ 2,218 $ 14,899 $ 7,913 --------------------------------------------------------------------------
   -------------------------------------------------------------------------- --------------------------------------------------------------------------
   -------------------------------------------------------------------------- Total Total Deficit Share- (in thousands of dollars)
   and holders' (unaudited) Deficit AOCL AOCL Equity --------------------------------------------------------------------------
   -------------------------------------------------------------------------- Balance, November 30, 2006 $ (653) $ 1 $ (652)
   $ 22,051 -------------------------------------------------------------------------- --------------------------------------------------------------------------
   Net earnings 642 642 642 Other comprehensive income: Foreign currency translation adjustments (Note 14) (579) (579) (579)
   ---------------------- ---------------------- Comprehensive income 63 63 ---------------------- ---------------------- Stock
   based compensation 109 -------------------------------------------------------------------------- --------------------------------------------------------------------------
   Balance, August 31, 2007 $ (11) $ (578) $ (589) $ 22,223 --------------------------------------------------------------------------
   -------------------------------------------------------------------------- See accompanying notes. FIRAN TECHNOLOGY GROUP
   CORPORATION Interim Consolidated Statements of Cash Flows ----------------------------------------------------- -------------------
   ----------------------------------------------------- ------------------- Three Months Ended Nine Months Ended -----------------------------------------------------
   ------------------- ----------------------------------------------------- ------------------- August August August August
   29, 31, 29, 31, 2008 2007 2008 2007 (unaud- (unaud- (unaud- (unaud- (in thousands of dollars) ited) ited) ited) ited) ---------------------------------------------------------------------------
   --------------------------------------------------------------------------- NET (OUTFLOW) INFLOW OF CASH RELATED TO THE FOLLOWING
   ACTIVITIES: OPERATING Net earnings (loss) $ 190 $ (182) $ (651) $ 642 Items not affecting cash Stock based compensation expense
   34 20 98 109 Future income taxes - (87) - 274 Recovery of research and development costs (Note 8) - - - (814) Effect of exchange
   rates on U.S. dollar Canadian debt 273 (19) 245 (237) Amortization of capital assets 719 724 2,100 2,211 Changes in non-cash
   operating working capital (265) (524) (1,623) (2,796) ---------------------------------------------------------------------------
   951 (68) 169 (611) --------------------------------------------------------------------------- INVESTING Acquisition of Filtran
   Microcircuits Inc. (Note 4) - - (1,462) - Additions to capital assets (115) (1,156) (511) (2,977) Repayment from related party
   - 154 - 154 --------------------------------------------------------------------------- (115) (1,002) (1,973) (2,823) ---------------------------------------------------------------------------
   FINANCING (Decrease) increase in bank indebtedness (590) - 2,077 - Proceeds from capital expenditure facility - 1,054 501
   2,115 Repayments of long-term debt (347) (243) (984) (735) ---------------------------------------------------------------------------
   (937) 811 1,594 1,380 --------------------------------------------------------------------------- Effects of foreign exchange
   rate changes on cash flow 32 24 90 51 --------------------------------------------------------------------------- NET CASH
   FLOW (69) (235) (120) (2,003) CASH, BEGINNING OF PERIOD 183 580 234 2,348 ---------------------------------------------------------------------------
   CASH, END OF PERIOD $ 114 $ 345 $ 114 $ 345 --------------------------------------------------------------------------- DISCLOSURE
   OF CASH PAYMENTS Payments for interest $ 170 $ 149 $ 528 $ 410 Payments for income taxes $ 2 $ - $ 4 $ - Refund of income
   taxes $ - $ 157 $ 73 $ 157 --------------------------------------------------------------------------- See accompanying notes.
   

FIRAN TECHNOLOGY GROUP CORPORATION

Selected Notes to the Interim Consolidated Financial Statements

(in thousands of dollars except per share amounts)

4. ACQUISITION OF FILTRAN MICROCIRCUITS INC. ("FILTRAN")

On December 28, 2007, the Corporation acquired substantially all of the assets of Filtran Microcircuits Inc. ("Filtran"), a Canadian printed circuit board manufacturer based in Ottawa, Ontario and focused primarily on the manufacture of microwave printed circuit boards for high frequency applications.

The transaction was effected pursuant to an asset purchase agreement entered into between the Corporation, Filtran and Filtran's parent company, Merrimac Industries Inc. ("Merrimac") (AMEX: MRM). The total consideration payable by the Corporation was $1,450 in cash plus the assumption of certain liabilities. The Corporation paid $800 of the purchase price at closing with the balance payable 49 calendar days after closing. The Corporation financed the acquisition from existing cash and its bank operating line. The preliminary allocation of the purchase price to the fair values of assets and liabilities acquired was made using the purchase method of accounting and are as follows:

 Accounts
   receivable $ 384 Inventories 321 Prepaid expenses 6 Capital assets (machinery & equipment) 1,070 Accounts payable and
   accrued liabilities (798) Goodwill and intangible assets 479 --------------------------------------------------------------------------
   Purchase price including acquisition expenses of $59 and net of cash acquired of $47 $ 1,462 --------------------------------------------------------------------------
   -------------------------------------------------------------------------- 

5. GOODWILL AND INTANGIBLES

Goodwill results from the Circuit World Corporation and FTG Inc. combination in fiscal 2003 of $1,039, the FTG Circuits - Chatsworth acquisition in fiscal 2005 of $3,042 and the Filtran Microcircuits Inc. acquisition in fiscal 2008 of goodwill and intangibles of $479. FTG Circuits - Chatsworth is considered a self-sustaining subsidiary; accordingly its goodwill is translated at exchange rates in effect at the balance sheet date. The resulting year to date gain of $178 on the translation of the goodwill is included in the accumulated other comprehensive loss section of shareholder's equity.

6. LONG -TERM DEBT AND BANK INDEBTEDNESS

 Long-term debt consists of: 2008 2007 -------------- 5 year U.S $6,000 term loan (of which U.S. $3,000 relates to
   the US subsidiary), amortized over 7 years, repayable in equal monthly payments of U.S. $72 plus interest at a fixed rate
   of 8.19%. Term loan secured by a first charge over all of the property and assets of the Company and matures July 14, 2011.
   Principal at August 29, 2008 U.S. $4,214 (November 30, 2007- U.S. $4,868) 4,476 4,868 5 year U.S. $2,500 capital expenditure
   facility (of which U.S. $1,000 relates to the US subsidiary), amortized over 5 years, repayable in equal monthly payments
   of U.S. $42 plus interest at US prime less 50 basis points, matures July 14, 2012. Principal at August 29, 2008 U.S. $2,079
   (November 30, 2007 - U.S. $2.400). 2,208 2,400 5 year U.S. $2,000 capital expenditure facility, drawdown period expires December
   31, 2008, repayable in equal monthly instalments plus interest at US prime less 50 basis points, matures December 31, 2013.
   Capital repayment shall commence on January 1, 2009. Principal at August 29, 2008 U.S. $500 (November 30, 2007 - nil) 531
   - -------------- $7,215 $7,268 Less: amounts due within one year 1,512 1,368 -------------- $5,703 $ 5,900 --------------
   

The Corporation has available a 3 year committed revolving credit facility of U.S. $6,000 subject to certain borrowing base requirements, maturing July 12, 2009. The US subsidiary utilized U.S. $1,050 of the revolving facility at August 29, 2008 (U.S. $400 at November 30, 2007) and $1,422 (nil at November 30, 2007) was utilized by the Canadian parent mainly to finance the purchase of Filtran Microcircuits Inc. and general working capital purposes. The revolving credit facility is secured by a first charge on all of the property and assets of the Corporation. Interest rates are at US prime less (50) basis points.

The Corporation was in compliance with all of its bank covenants as at August 29, 2008.

8. RESEARCH AND DEVELOPMENT COSTS AND RECOVERIES

Research and development costs include the cost of direct labour, materials and an allocation of overhead. Generally, these costs represent specific activities regarding the technical uncertainty of production processes and exotic materials. The Corporation recorded $586 of research and development costs in the quarter and $2,409 on a year to date basis. This compares to $984 and $2,373 for the same periods in 2007.

Filtran research and development costs were $129 for the third quarter and $503 on a year to date basis. These costs include the cost of direct labour, materials and an allocation of overhead for the radio frequency product line which has been introduced into the Circuits segment.

During the third quarter of 2007, recovery of research and development costs were $84 of refundable tax credits from the Ontario government Ontario Innovation Tax Credit ("OITC") program and $2 of refundable expenditures from the Ontario government Industrial Research Assistance Program ("IRAP"). Of the 2007 year to date amount, recovery of research and development costs were $814 of non-refundable Scientific Research and Experimental Development ("SR&ED") tax credit claims which could be used to reduce future taxable income, $219 to the OITC refund and $16 for IRAP refunds.

During the third quarter of 2008, the Corporation earned additional SR&ED tax credits of $106 and $437 on a year to date basis. These can be used to reduce future taxable income and were not recorded as recoveries.

9. RESTRUCTURING COSTS

During the third quarter of 2008, the Corporation recorded and paid $117 in restructuring costs and $325 on a year to date basis for costs associated with integrating and closing the Filtran facility.

10. INCOME TAXES

The Corporation accounts for income taxes under the liability method. Under the liability method, a future tax asset is recorded only to the extent that based on available evidence; it is more likely than not that a future tax asset will be realized. The valuation allowance is reviewed and adjusted for each reporting period. Should management estimates of taxable income change in future periods, it may be necessary to adjust the valuation allowance, which will affect the results of operations in the period such a determination was made.

The income tax recovery for the third quarter of 2008 consists of a U.S. subsidiary current tax recovery of $39 at a 45.4% income tax rate as a result of the third quarter loss. There is no current income tax provision recorded for the Canadian operation during the quarter or year to date basis as a result of the year to date loss. This compares to a third quarter 2007 Canadian operation future tax recovery of $87 at a 34.0% income tax rate and a U.S. subsidiary recovery of $11 at a 45.4% income tax rate.

On a year to date basis, the income tax recovery consists of a U.S. subsidiary current tax recovery of $173 at a 45.4% income tax rate as the result of the year to date loss. This compares to a 2007 Canadian operation provision of $274 at a 34.0% income tax rate and a U.S subsidiary provision of $91 at a 45.4% income tax rate.

13. CONTINGENCIES

On December 10, 2004, the Corporation acquired from Ambitech International Inc. all of the shares of SnS Enterprises Inc. (operating as Young Electronics), a U.S. printed circuit board manufacturer based in Los Angeles, California. Ambitech International Inc. has tax filings which were due for the 15 month period preceding the acquisition by the Corporation. In accordance with the purchase and sale agreement, the Corporation was indemnified for any tax liabilities outstanding at the time of the agreement. During the third quarter of 2008, the Ambitech appointed receiver filed the outstanding returns and the Corporation paid $3 in penalties and late payment fees. The Corporation is waiting for final assessment documentation.

The Corporation has received claims from the former landlord and severed employees of the Filtran business in connection with the Corporation's purchase of selected assets and liabilities of Filtran. The Corporation feels the claims have no merit and will not have an impact on the Corporation as it is indemnified by Filtran and Merrimac.

15. SEGMENTED INFORMATION

The Corporation operates in two operating segments, FTG Circuits and FTG Aerospace. FTG Circuits is a leading manufacturer of high technology/high reliability printed circuit boards within the North American marketplace. FTG Aerospace is a manufacturer of illuminated cockpit panels, keyboards, bezels and sub assemblies for original equipment manufacturers of avionic products and airframe manufacturers. FTG Circuits and FTG Aerospace financial information is shown below:

 -----------------------------------------------------------------------
   --- Three Months Ended August 29, 2008 -------------------------------------------------------------------------- Corporate
   Circuits Aerospace Office Total -------------------------------------------------------------------------- Sales $12,746 $3,002
   $ - $15,748 Costs and SG&A expenses 10,891 2,439 546 13,876 Amortization of capital assets 617 102 - 719 Research and
   development costs 543 43 - 586 Filtran research and development costs 129 - - 129 Restructuring costs 117 - - 117 --------------------------------------------------------------------------Earnings
   (loss) before interest and taxes 449 418 (546) 321 Interest expense 170 - - 170 Income taxes (recovery) (39) - - (39) --------------------------------------------------------------------------
   Net earnings (loss) $ 318 $ 418 $(546) $ 190 -------------------------------------------------------------------------- Segment
   assets $24,698 $8,301 $ - $32,999 Goodwill and intangibles 4,560 - - 4,560 Additions to capital assets 84 31 - 115 --------------------------------------------------------------------------
   -------------------------------------------------------------------------- Three Months Ended August 31, 2007 --------------------------------------------------------------------------
   Corporate Circuits Aerospace Office Total -------------------------------------------------------------------------- Sales
   $10,877 $3,018 $ - $13,895 Costs and SG&A expenses 9,344 2,579 477 12,400 Amortization of capital assets 684 40 - 724
   Research and development costs 956 28 - 984 Recovery of research and - development costs (84) (2) - (86) --------------------------------------------------------------------------
   Earnings (loss) before interest and taxes (23) 373 (477) (127) Interest expense 153 - - 153 Income taxes (recovery) (188)
   90 - (98) -------------------------------------------------------------------------- Net earnings (loss) $ 12 $ 283 $(477)
   $ (182) -------------------------------------------------------------------------- Segment assets $29,970 $7,748 $ - $37,718
   Goodwill 4,065 - - 4,065 Additions to capital assets 839 317 - 1,156 --------------------------------------------------------------------------
   Geographic location --------------------------------------------------------------------------- (in thousands of dollars)
   For Three Months Ended August 29, 2008 --------------------------------------------------------------------------- United
   Canada States Asia Europe Total --------------------------------------------------------------------------- Sales (by location
   of customer) $3,081 $11,790 $723 $154 $15,748 Goodwill and intangibles (by location of division) 1,518 3,042 - - 4,560 Capital
   assets (by location of division) 4,872 2,494 - - 7,366 ---------------------------------------------------------------------------
   --------------------------------------------------------------------------- For Three Months Ended August 31, 2007 ---------------------------------------------------------------------------
   United Canada States Asia Europe Total --------------------------------------------------------------------------- Sales (by
   location of customer) $2,218 $11,238 $342 $97 $13,895 Goodwill (by location of division) 1,039 3,026 - - 4,065 Capital assets
   (by location of division) 5,961 1,647 - - 7,608 ---------------------------------------------------------------------------
   -------------------------------------------------------------------------- Nine Months Ended August 29, 2008 --------------------------------------------------------------------------
   Corporate Circuits Aerospace Office Total -------------------------------------------------------------------------- Sales
   $36,062 $9,742 $ - $45,804 Costs and SG&A expenses 30,867 8,212 1,684 40,763 Amortization of capital assets 1,861 239
   - 2,100 Research and development costs 2,248 161 - 2,409 Filtran research and development costs 503 - - 503 Restructuring
   costs 325 - - 325 -------------------------------------------------------------------------- (Loss) earnings before interest
   and taxes 258 1,130 (1,684) (296) Interest expense 528 - - 528 Income taxes (recovery) (173) - - (173) --------------------------------------------------------------------------
   Net (loss) earnings $ (97) $1,130 $(1,684) $ (651) --------------------------------------------------------------------------
   Segment assets $24,698 $8,301 $ - $32,999 Goodwill and intangibles 4,560 - - 4,560 Additions to capital assets 447 64 - 511
   -------------------------------------------------------------------------- --------------------------------------------------------------------------
   Nine Months Ended August 31, 2007 -------------------------------------------------------------------------- Corporate Circuits
   Aerospace Office Total -------------------------------------------------------------------------- Sales $33,705 $9,364 $ -
   $43,069 Costs and SG&A expenses 28,640 8,044 1,417 38,101 Amortization of capital assets 2,082 129 - 2,211 Research and
   development costs 2,309 64 - 2,373 Recovery of research and - development costs (1,033) (16) - (1,049) --------------------------------------------------------------------------
   Earnings (loss) before interest and taxes 1,707 1,143 (1,417) 1,433 Interest expense 426 - - 426 Income taxes 85 280 - 365
   -------------------------------------------------------------------------- Net earnings (loss) $ 1,196 $ 863 $(1,417) $ 642
   -------------------------------------------------------------------------- Segment assets $29,970 $7,748 $ - $37,718 Goodwill
   4,065 - - 4,065 Additions to capital assets 2,331 646 - 2,977 --------------------------------------------------------------------------
   --------------------------------------------------------------------------- Geographic location ---------------------------------------------------------------------------
   (in thousands of dollars) For Nine Months Ended August 29, 2008 ---------------------------------------------------------------------------
   United Canada States Asia Europe Total --------------------------------------------------------------------------- Sales (by
   location of customer) $8,865 $34,291 $2,190 $458 $45,804 Goodwill and intangibles (by location of division) 1,518 3,042 -
   - 4,560 Capital assets (by location of division) 4,872 2,494 - - 7,366 ---------------------------------------------------------------------------
   --------------------------------------------------------------------------- For Nine Months Ended August 31, 2007 ---------------------------------------------------------------------------
   United Canada States Asia Europe Total --------------------------------------------------------------------------- Sales (by
   location of customer) $6,743 $34,907 $1,010 $409 $43,069 Goodwill (by location of division) 1,039 3,026 - - 4,065 Capital
   Assets (by location of division) 5,961 1,647 - - 7,608 ---------------------------------------------------------------------------
   

16. COMPARATIVE FIGURES

Certain of the comparative figures in the interim consolidated financial statements have been reclassified to conform with the current period's presentation.

 Contacts: Firan Technology Group Corporation
   Bradley C. Bourne President and CEO (416) 299-4000 x314 Email: bradbourne@ftgcorp.com Firan Technology Group Corporation Joseph
   R. Ricci Vice President and CFO (416) 299-4000 x309 Email: joericci@ftgcorp.com Website: www.ftgcorp.com 

SOURCE: Firan Technology Group Corporation

mailto:bradbourne@ftgcorp.com mailto:joericci@ftgcorp.com http://www.ftgcorp.com
   

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