HEI, Inc. Announces Results for the First Quarter Fiscal 2010

MINNEAPOLIS, April 26 /PRNewswire-FirstCall/ -- HEI, Inc. (Pink Sheets: HEII) (http://www.heii.com) today announced its financial results for its first quarter of fiscal year 2010, which ended April 3, 2010.

Net sales for the first quarter were $9,520,000 compared to $8,883,000 for the first quarter of fiscal year 2009.  The Company generated net income of $293,000 for the first quarter of fiscal year 2010 compared to a net income of $268,000 for the same period of fiscal year 2009.

HEI CEO, Mark B. Thomas, remarked: "The new customers and new programs that we added in all three operating divisions in the latter part of 2009 have started to show contributions in the early part of 2010, along with an increase in demand from our existing customers.  Although we realize that one quarter of results does not demonstrate a trend, it is nice to see that the operations are coming back around as we emerge from the slump in sales experienced in 2009.  Our drive throughout the remainder of 2010 will be to continue to grow sales, improve gross margins and expand our customer base."

FORWARD LOOKING INFORMATION

Information in this news release, which is not historical, includes forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 that involve substantial risks and uncertainties. You can identify these statements by forward-looking words such as "may," "will," "expect," "anticipate," "believe," "intend," "estimate," "continue," and similar words.  Statements contained in this press release, including the implementation of business strategies, growth of specific markets, improved results and the estimated HEI revenue, cash flow and profits, are forward looking statements.  All of such forward-looking statements involve risks and uncertainties including, without limitation, continuing adverse business and  market conditions, the ability of HEI to secure and satisfy customers, the availability and cost of materials from HEI's suppliers, HEI's ability to satisfy financial or other obligations or covenants set forth in its financing agreements, adverse competitive developments, change in or cancellation of customer requirements, collection of receivables and outstanding debt, HEI's ability to control fixed and variable operating expenses, and other risks detailed in previous HEI SEC filings. Since HEI is no longer reporting to the SEC, readers are cautioned to weigh the potential for additional risk factors based on ongoing business activities and the current economic conditions in the world economy.  The information set forth herein should be read in light of such risks.  We undertake no obligation to update these statements to reflect ensuing events or circumstances, or subsequent actual results.

SOURCE HEI, Inc.