T.J.T., Inc. Reports Lower Income for the First Quarter of Fiscal Year 2007

Business Wire, Feb 9, 2007

EMMETT, Idaho -- T.J.T., Inc. (the Company), (Pink Sheets:AXLE) T.J.T., Inc. reported lower income as a result of a 35 percent decline in first quarter sales.

The 35 percent decrease in sales volume, as compared to the first quarter of last year, was primarily a result of declining manufactured home shipments, both nationally and within our traditional market area. According to the Institute for Building Technology and Safety, Inc., home shipments in the Company's market area declined approximately 30 percent during the first quarter of 2007 compared to the same period a year ago.

As sales deteriorated, gross profit during the first quarter decreased 41 percent compared to the same quarter in fiscal 2006. The rapid drop in sales during the period resulted in gross margin falling three percentage points as direct costs declined at a slower rate. The Company's selling and general administrative expense decreased by 11 percent. The decline is largely due to a reduction in performance based incentive compensation as a result of lower earnings in the 2007 quarter.

The Company's net income was $21,000 for the first quarter of fiscal 2007, compared to $540,000 for the same quarter a year ago. The Company recognized $31,000 of joint venture income in the 2007 first quarter compared to $216,000 in the same 2006 quarter.

"Our first quarter has been disappointing," said Terrence Sheldon, President and Chief Executive Officer of T.J.T. "The rapid decline in our sales volume nearly mirrors that of the manufactured home industry, as the steepest in several years. The Company is much better positioned than in previous years, to withstand such a decline, and to take advantage of improvements and opportunities as they may occur."

Established in 1977, T.J.T., Inc. is a major provider of recycled axles and tires to the manufactured housing industry. It operates recycling facilities in Idaho, Washington, California, and Colorado, and serves 14 western states. In addition to the recycling business, T.J.T. also sells aftermarket products to manufactured housing, recreational vehicle, and residential markets.

This release contains certain forward-looking statements, which are based on management's current expectations including, but not limited to, general economic conditions, changes in interest rates, deposit flows, real estate values, competition, and changes in legislation or regulations, and other economic, competitive, governmental, regulatory, and technological factors affecting the company's operations, pricing, products, and services. Any forward looking statement speaks only as of the date on which the statement is made, and the Company undertakes no obligation to update any forward looking statement.

Copies of this report and additional financial information can be found at www.pinksheets.com.

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