Fairview, Pa, September 25, 2008 ----- Spectrum Control, Inc. (NASDAQ: SPEC), a leading designer and manufacturer of custom electronic products and systems, today reported results for the third quarter ended August 31, 2008.

For the third quarter of fiscal 2008, the Company reported net income of $2.4 million or 18 cents per fully diluted share on revenues of $33.1 million, compared to net income of $3.1 million or 22 cents per fully diluted share on sales of $35.4 million for the same period last year. For the first nine months of fiscal 2008, the Company reported net income of $6.3 million or 47 cents per fully diluted share on revenues of $96.9 million. For the comparable period of 2007, the Company reported net income of $8.0 million or 58 cents per fully diluted share on revenues of $101.9 million.

Dick Southworth, the Company's President and Chief Executive Officer, commented, "We are very pleased to report third quarter results that are consistent with our previous guidance, as well as being up sequentially from our prior two quarters. For the second consecutive quarter, we generated sequential improvement in revenues, operating margins, net income, and earnings per share. Despite ongoing challenges within our telecom equipment markets and growing concerns within the general economic climate, we have managed to resume revenue growth, while implementing numerous operating improvements to increase our profitability."

Increased Operating Margins

In the current quarter our gross margin was $8.6 million or 25.9% of sales, compared to $8.1 million or 24.8% of sales in the preceding quarter and $6.9 million or 22.0% of sales in the first quarter of this year. This increase in gross margin reflects improved production yields across virtually all of our businesses. In addition, we have made a strategic decision to maintain our production capacity and infrastructure to enable us to quickly and efficiently respond to our customers. Accordingly, as sales volumes have begun to grow, we have not needed to add any significant production capacity, allowing us to leverage our fixed manufacturing overhead and enhance our operating margins. This strategy remains a key element of our ongoing business model.

Improved Cash Flow

Net cash provided by operating activities in the current quarter grew to $4.4 million. This positive cash flow was primarily driven by reductions in our overall working capital requirements, along with our enhanced profitability. This improved operating cash flow enabled us to reduce our short-term bank borrowings by $2.0 million in the current quarter and repurchase on the open market 313,028 shares of our Common Stock at an aggregate cost of $2.4 million. During the nine month period ended August 31, 2008, we have repurchased a total of 756,395 shares of our Common Stock at an aggregate cost of $6.5 million. Under our Board of Directors current authorization, we may expend an additional $872,000 under our stock buyback program. The amount and timing of future share repurchases, if any, will be based on our ongoing assessment of the Company's capital structure, liquidity, and the market price of our Common Stock. We believe our ongoing stock buyback program is a positive reflection of our future business outlook and strong financial position.

Current Business Outlook

Mr. Southworth added, "Based on our current assessment of customer demand and our existing customer order backlog, we presently anticipate our 2008 fourth quarter sales to be $33.2 to $34.5 million. Based on this shipment level, we expect our 2008 fourth quarter earnings to be 19 to 21 cents per share. If these operating levels are achieved, we will have demonstrated sequential growth in revenue and profitability in each quarter throughout fiscal year 2008. On a longer-term basis, our strategy remains unchanged. We will continue to diversify our end markets, leverage our business infrastructure, and provide an increasing array of value-added products and solutions to our customers. With this strategy, we believe our Company is well-positioned for dynamic growth and enhanced shareholder value."

Forward-Looking Information

This press release contains statements that are forward-looking statements within the meaning of the Private Securities Reform Act of 1995. These statements are based on current expectations, estimates and projections about the Company's business based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements due to numerous factors and risks discussed from time to time in the Company's Securities and Exchange Commission filings and reports. In addition, such statements could be affected by general industry and market conditions and growth rates, and general domestic and international economic conditions. Such forward-looking statements speak only as of the date on which they are made and the Company does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this release.

Simultaneous Webcast and Teleconference Replay

Spectrum Control, Inc. will host a teleconference to discuss its third quarter results on Thursday, September 25, 2008, at 4:45 p.m., Eastern Time. Internet users will be able to access a simultaneous webcast of the teleconference at www.spectrumcontrol.com or www.vcall.com. A taped replay of the call will be available through September 26, 2008, at 877-660-6853, access account 286, conference 296554, or for 30 days over the Internet at the Company's website.

About Spectrum Control

Spectrum Control, Inc. is a leader in the design, development and manufacture of custom electronic products and systems for the defense, aerospace, communications, and medical industries worldwide. For more information about Spectrum Control and its products, please visit the Company's website at www.spectrumcontrol.com.