TSR, Inc. Reports Financial Results for the Fourth Quarter and Fiscal Year Ended May 31, 2007

Business Wire, August 3, 2007

HAUPPAUGE, N.Y. -- TSR, Inc., (Nasdaq:TSRI) a provider of computer programming consulting services, today announced financial results for the fourth quarter and fiscal year ended May 31, 2007.

For the quarter, which ended May 31st, revenues increased 5.7% from the same quarter last year to $12.9 million. Consolidated net income was $335,000 or $0.07 per share for the current quarter compared with a loss of $33,000 in the prior year quarter. The prior year results were effected by a reserve of $900,000 established to settle claims against the Company by the New York City Department of Education. Without the reserve, the prior year's net income for the quarter would have been $437,000 or $0.10 per share.

For the full year, revenues increased 3.3% from the prior year to $49.7 million. Consolidated net income increased $1,393,000 or $0.30 per share compared to $1,214,000 or $0.27 per share in the prior year. Without the reserve, net income for the prior year would have been $1,684,000 or $0.37 per share.

The Company also announced that the Board of Directors had declared a cash dividend of $0.08 per share for its fiscal fourth quarter. The dividend will be payable on September 12, 2007 to shareholders of record as of August 24, 2007.

Joe Hughes, CEO, stated, " After eliminating the effects of the reserve in the prior year, net income for the fourth quarter and fiscal year decreased 23.3% and 17.3%, respectively. The decreases resulted primarily from new and increased discount programs at major customers and the expenses associated with hiring additional account executives and technical recruiters to address increasing competition."

Certain statements contained herein are forward-looking statements, as defined in the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those set forth in the forward-looking statements due to known and unknown risks and uncertainties, including but not limited to those described in the Company's filings under the Securities Exchange Act of 1934.

Based in Hauppauge, New York, TSR, Inc. provides information technology professionals to major corporations.

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