SANTA ANA, Calif., Feb. 16 /PRNewswire-FirstCall/ -- TROY Group, Inc. (OTC:TROY) today announced that financial results for the fiscal year 2006, which ended November 30, 2006, have been posted on the company's Web site at http://www.troygroup.com/. To access the report, click on About TROY Group then click on Financials. TROY's 2006 financial results are also posted at http://www.pinksheets.com/. Enter TROY in the symbol field then click on Financial Report. Revenue for the year ended November 30, 2006 increased to $50.0 million compared to revenue for the year ended November 30, 2005 of $42.0 million largely due to the one time purchase of printers by one customer. Earnings from continuing operations for the year ended November 30, 2006 increased to $0.54 per share compared to $0.32 per share for the year ended November 30, 2005. For more information Contact: TROY Group, Inc. 2331 South Pullman Street Santa Ana, CA 92705 (949) 250-3280 (949) 250-8972 Facsimile http://www.troygroup.com/ Contact: Dennis C. Fairchild Vice President & CFO Financial Data Summary Following TROY GROUP, INC. CONSOLIDATED BALANCE SHEETS November 30, 2005 2006 ASSETS Current assets: Cash and cash equivalents $492,000 $350,000 Investment in available-for-sale securities 12,600,000 9,650,000 Accounts receivable, net of allowance for doubtful accounts 2005 $472,000; 2006 $322,000 6,416,000 5,788,000 Inventories 3,053,000 3,980,000 Prepaid expenses and other 707,000 917,000 Deferred tax assets 2,525,000 874,000 Current assets of discontinued operations held for sale 3,336,000 -- Total current assets 29,129,000 21,559,000 Equipment and leasehold improvements, net 2,501,000 2,126,000 Goodwill 281,000 281,000 Other assets, including receivables from stockholders of $1,903,000 2,925,000 3,324,000 Non-current assets of discontinued operations held for sale 38,000 -- Total assets $34,874,000 $27,290,000 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $2,236,000 $4,310,000 Accrued expenses 3,439,000 3,171,000 Deferred revenue 1,422,000 1,994,000 Current liabilities of discontinued operations held for sale 1,667,000 -- Total current liabilities 8,764,000 9,475,000 Commitments and contingencies Stockholders' equity: Preferred stock, no par value, authorized 100,000 shares; issued none Common stock, par value $0.01 per share; authorized 13,000,000 shares; issued 2005 10,639,877 shares; issued 2006 10,563,701 shares 107,000 106,000 Additional paid-in capital 19,913,000 20,510,000 Retained earnings (deficit) 6,523,000 (2,801,000) Accumulated other comprehensive income 59,000 -- Less cost of treasury stock - 2005 201,510 shares (492,000) -- Total stockholders' equity 26,110,000 17,815,000 Total liabilities and stockholders' equity $34,874,000 $27,290,000 TROY GROUP, INC. CONSOLIDATED STATEMENTS OF INCOME Fiscal Years Ended November 30, 2004 2005 2006 Net sales $38,794,000 $41,979,000 $50,029,000 Cost of goods sold (including rent paid to majority stockholders: 2004 $279,000, 2005 $291,000 and 2006 $315,000) 24,068,000 24,609,000 28,717,000 Gross profit 14,726,000 17,370,000 21,312,000 Operating expenses: Selling, general and administrative 12,865,000 9,180,000 10,566,000 Research and development 2,874,000 3,043,000 3,063,000 Amortization of intangible assets 75,000 75,000 10,000 Total operating expenses 15,814,000 12,298,000 13,639,000 Operating income (loss) (1,088,000) 5,072,000 7,673,000 Interest income 131,000 321,000 874,000 Income (loss) from continuing operations before income taxes (957,000) 5,393,000 8,547,000 Provision for (benefit from) income taxes (368,000) 2,034,000 2,856,000 Income (loss) from continuing operations (589,000) 3,359,000 5,691,000 Income (loss) from discontinued operations, net of tax 1,174,000 (826,000) 6,018,000 Net income $585,000 $2,533,000 $11,709,000 Net income per share: Basic income (loss) from continuing operations $(0.06) $0.32 $0.54 Basic income (loss) from discontinued operations 0.11 (0.08) 0.58 Basic income $0.05 $0.24 $1.12 Diluted income (loss)from continuing operations $(0.06) $0.32 $0.54 Diluted income (loss) from discontinued operations 0.11 (0.08) 0.58 Diluted income $0.05 $0.24 $1.12 Weighted average shares outstanding: Basic 10,641,000 10,607,000 10,469,000 Diluted 10,650,000 10,608,000 10,475,000 About TROY Group TROY Group, Inc. ("TROY") is a worldwide provider of secure payment solutions. Our security printing solutions include application software, high security check printing hardware and specialized consumables for secure printing and payment applications. Our ACH (Automated Clearing House) software includes ACH processing and origination software and consulting services. We sell and service our products to major corporations, banks, key government accounts and distributors worldwide. Visit TROY at http://www.troygroup.com/. Forward-looking statements of TROY (statements that are not historical fact) in this news release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may be identified by terms such as believe, expect, may, will, could and should, and the negative of these terms or other similar expressions. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those discussed in the forward-looking statements. These risks and uncertainties include, but, are not limited to, the ability to develop new products, the ability to hire and retain qualified management, technology and other personnel, the impact of competition from existing and new technologies and companies and the other factors set forth in our periodic reports and other documents that we distribute from time to time which are available in our financial statements under certain important factors on our website TROYgroup.com or pinksheets.com. Statements included in this news release are based upon information known to TROY as of the date of this release, and TROY assumes no obligation to update information contained in this news release. DATASOURCE: TROY Group, Inc. CONTACT: Dennis C. Fairchild, Vice President & CFO of TROY Group, Inc., +1-949-250-3280, or fax, +1-949-250-8972 Web site: http://www.troygroup.com/

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