The Company reported a net loss of USD 127 thousand, or USD (0.03) per share, for the quarter ending June 30, 2009, compared to net profit of USD 24 thousand, or USD 0.01 per share, one year earlier. Second quarter results improved sequentially from this year's first quarter loss of (USD 0.21) per share.

Adjusted EBITDA for the quarter (as defined in the addendum to this release) advanced to USD 662 thousand, compared to USD 351 thousand for the same quarter last year.

"While we continue to operate in a challenging environment for the end markets we serve, our technology solutions are generating results in the areas where our customers are investing," said Dave Patterson, president of Optelecom-NKF. "In the meantime, we are executing on our vision, developing leading video security and traffic solutions for the government, institutional, and commercial market segments. We've taken steps to manage costs even as we enhance our global competitive position through product development and new partnering relationships. These initiatives will strengthen our manufacturing, sourcing, and distribution capabilities and further improve our innovation, productivity, and ability to meet customer needs."