OTCPicks.com

FEATURED COMPANY

SOUTHRIDGE ETHANOL INCORPORATED (OTCBB: SRDG)
"Up 52.00% in morning trading"

Detailed Quote: www.otcpicks.com/quotes/SRDG.php

Company Profile:
http://www.otcpicks.com/southridge-enterprises/southridge-enterprises.htm

Southridge Ethanol, Inc. is a renewable energy company with a mission to become the ethanol producer of choice in the southeastern region of the United States. The company is focusing its efforts in an area which offers abundant supplies of corn, superior transportation infrastructure and expedited permitting processes. The Company is actively acquiring and developing ethanol production facilities with a planned capacity of 60 million gallons per year and anticipates start-up of the first phase of these operations in 2007. Southridge Ethanol is headquartered in Dallas, TX.

SRDG News:

October 7 - Southridge Enterprises Signs Letter of Intent to Acquire Ethanol Plant in Brazil

Southridge Enterprises Inc. (OTCBB: SRDG) (the “Company”) announced that Southridge Ethanol, Inc., its wholly owned subsidiary, has signed a letter of intent ("LOI") to acquire ethanol plant from Bronsiacco Industrial Ltd.

"The opportunity to acquire this plant has given Southridge a tremendous advantage to be a large producer of ethanol in Brazil. By purchasing an existing plant, we will be able to produce 50 million gallons per year (MMGY) by May 10, 2009. With this asset on our balance sheet, we have once again shown our ability to build shareholder value," stated Ken Milken, President of Southridge Ethanol, Inc.

To close this acquisition, Southridge will use the proceeds of an equity financing from an Asian-based investment transaction nearing completion. The purchase is expected to close in 30 days, subject to certain conditions, including but not limited to completion of satisfactory due diligence by the Company, the negotiation and completion of a definitive acquisition agreement, approval of the Company and Bronsiacco Industrial Ltd. boards of directors and other customary conditions.

FEATURED COMPANY

BRITE-STRIKE TECHNOLOGIES INCORPORATED (OTC: BSTI)

Detailed Quote: www.otcpicks.com/quotes/BSTI.php

Company Profile: http://www.otcpicks.com/brite-strike/brite-strike.htm

Brite-Strike Tactical Illumination Products, Inc. was started by two police officers to create world-class tactical LED flashlights that had the features that police officers and citizens need to keep them safe. Brite-Strike makes a promise to always use the latest technology, world-class components, highest design and manufacturing standards, so consumers can rely on Brite-Strike products when they are needed.

BSTI News:

October 6 - Brite-Strike Tactical Illumination Products, Inc. Receives Solar Product Patent

Brite-Strike Tactical Illumination Products, Inc. (OTC: BSTI) announced that it and Glenn Bushee, President of the Company, were awarded US Patent No. 7,350,692, for a Solar Powered Mailbox/Driveway Lamp. The product, the first commercial product the company has developed which utilizes LED lighting powered exclusively by small solar panels, will be introduced in 2009. The Company plans on developing and distributing products which have the potential to revolutionize the use of LED lighting in this country, through a wholly owned division, Brite-Strike Technologies.

"This product will be our first entry that marries the energy efficiency of LED light with the portability of solar," said Glenn Bushee, President of Brite-Strike. "The technology we developed for our revolutionary tactical flashlights has direct applications for many lighting applications, as we can produce a light far brighter than those currently available in the marketplace. LED lights only use 5% of the equivalent energy of incandescent lights, with almost no heat, so developing products utilizing this technology can make major inroads in cutting energy consumption in this country. Our first product will be of the highest quality, and will function as a driveway lamp with mailbox light, address number lights, and an optional motion-activated light with camera-all powered by solar, with no external wiring required. It will offer incredible value for the consumer. We have other more significant products which we are working on, which will be announced in the weeks to come," said Mr. Bushee.

FEATURED COMPANY

MEDIVISOR INCORPORATED (OTC: MVSR)

Detailed Quote: www.otcpicks.com/quotes/MVSR.php

Company Profile: http://www.otcpicks.com/medivisor/medivisor.htm

Medivisor, Inc. provides medical information to healthcare professionals, primarily physicians, through its Web sites, using inter-active, informational, and video and graphic presentations. It also focuses on offering Web site services to various industries seeking direct access to physicians, including providers of continuing medical education courses; sponsors of medical conferences and seminars; and pharmaceutical companies, using an online marketing format known as e-detailing. The company was founded in 2002 and is headquartered in Huntington Station, New York.

MVSR News:

October 9 - Medivisor, Inc. Set to Launch 'Maximum Energy Shot'

Medivisor, Inc. (OTC: MVSR), developer of next-generation focus driven marketing tools, announced today that it is in its final stages of pre-production of its proprietary drink, Maximum Energy Shot. Packaging and labeling should be completed by the end of the week, with production and national distribution to commence shortly. As previously announced this product will target both the United States and European markets. According to Market Research Group, the energy drink category has grown by 440% since 2002 to a whopping $6.6 billion in 2007 and is expected to reach $9 billion in 2011.

"We are anxiously awaiting the official launch of Medivisor's beverage, Maximum Energy Shot," stated Dino Luzzi, CEO of Medivisor, Inc. "We anticipate that the product will be available for viewing and purchase on the company's web site shortly," Mr. Luzzi added.

FEATURED COMPANY

PERF GO GREEN HOLDINGS INCORPORATED (OTCBB: PGOG)

Detailed Quote: www.otcpicks.com/quotes/PGOG.php

Company Profile:
http://www.otcpicks.com/perf-go-green/perf-go-green.htm

Perf Go Green Holdings, Inc. is engaged in the creation and global marketing of 100% eco-friendly, non-toxic, food-contact-compliant, biodegradable plastic products. All Perf Go Green products are made from recycled plastics and completely break down in landfill within two years, leaving no toxic or visible residue, as compared to other plastics that take hundreds of years. Perf Go Green’s corporate name reflects its “Go Green” mission to develop, market and distribute biodegradable plastic products as a practical and viable solution to eliminating plastic waste from the world environment.

PGOG News:

October 8 - Perf Go Green Products Hit Retail Shelves Nationwide

Perf Go Green Holdings, Inc. (OTCBB: PGOG) (“Perf Go Green”), a marketer and distributor of biodegradable plastics, announced that its 13-gallon kitchen trash bags and 30-gallon lawn and leaf bags are on retail shelves at more than 6,000 Walgreens locations throughout the U.S.

“Our roll-out at Walgreens took place right on schedule in mid-September,” said Chairman and CEO Tony Tracy. “We are thrilled that our biodegradable bags are available nationwide with this leading retailer, offering consumers an easy, cost-effective way to reduce plastic waste and benefit the environment as they shop for household necessities. Reception by consumers has been enthusiastic and, in fact, we've already received three re-orders from Walgreen's.

“From the get go, Perf Go Green's goal has been to offer a 'green' plastics platform to households and business all over the U.S. With the completion of our launch at Walgreens, as well as the many other retail launches and commercial conversions we have on tap for this fall, we're poised to make that goal a reality. Perf Go Green is helping to lead the way in the 'go green movement,' which analysts project will become a $500 billion market in the U.S. by 2009.”

Walgreens is the nation's largest drugstore chain with fiscal 2007 sales of $53.8 billion.

Founded in November 2007, Perf Go Green premiered at the March 2008 International Home and Housewares Show in Chicago, where its products received an honor for their design quality and innovation.

Perf Go Green products incorporate recycled plastics that are combined with an Oxo-Biodegradable proprietary application method to produce the film for the bags. Based on environmental claims statements made by the manufacturer of the Oxo-Biodegradable applied to our bags, when discarded in soil and exposed to the presence of microorganisms, moisture and oxygen, we believe Perf Go Green products biodegrade, decomposing into simple materials found in nature within two years, as opposed to regular plastics, which can take hundreds of years to break down. Through this process and the use of recycled plastics, the company effectively removes plastic waste from the environment. In addition, Perf Go Green kitchen trash bags utilize a unique patented dispensing system that stores the bags on the bottom of trashcans and dispenses them one at a time.

According to Landor Associates, the “go green movement” is poised to become a $500 billion market in the U.S. by 2009.

October 8 - Perf Go Green Holdings Given 'Speculative Buy' Rating, Target Price $3.75 by Beacon Equity Research

Perf Go Green Holdings (OTCBB: PGOG) has received a “Speculative Buy” rating with a price target of $3.75 by Beacon Analyst, Victor Sula, Ph.D.

The full report is available at http://beaconequity.com/main/Page-data/ Adpages/Perf-Go-Green-Holdings-Inc.-OTCBB-PGOG. (Due to its length, this URL may need to be copied/pasted into your Internet browser's address field. Remove the extra space if one exists.)

In the report, the analyst writes, “We anticipate a very rapid ramp-up for PGOG’s revenues in 2009 and over the next three to five years as a result of the environmental advantages of the Company’s biodegradable bag technology, PGOG’s steady progress in establishing distribution channels through leading national retailers, and a steady stream of extensions to its existing product lines. The annual U.S. market for trash bags alone exceeds $3.0 billion; we believe the potential market PGOG may address with product line extensions could easily create a $5.0 billion annual sales opportunity.”

Other companies in the environmental products/plastic bag brands sector include: Clorox Company (NSYE: CLX), Pactiv Corp. (NYSE: PTV), China Green Material Technologies Inc. (OTCBB: CAGM) and Biopack Environmental Solutions Inc. (OTCBB: BPAC).

FEATURED COMPANY

COPPER KING MINING CORPORATION (OTC: CPRK)

Detailed Quote: www.otcpicks.com/quotes/CPRK.php

Company Profile:
www.otcpicks.com/copper-king-mining/copper-king-mining.htm

Copper King Mining Corporation currently owns approximately 1200 acres in the Drum Mountains of Utah, which are patent deeded mining claims which contain gold, silver and copper. The company recently added to its holdings by filing six more claims on land which was inside their holdings, but not patent deeded. Contiguous to that acreage is approximately 1100 acres of claims filed by Western Utah Copper Company. As the companies explored the concept of a joint venture on the Drum Mountain properties, it was decided that a very viable consideration was to join the total assets of both companies.

CPRK News:

October 8 - Copper King Mining Corporation Announces Mining Updates

Copper King Mining Corporation (OTC: CPRK), an ore mining, processing, and exploration company located in Southern Utah, provided updates concerning its operations.

Significant Contract

The company recently awarded a contract to Quality Crushing of Cedar City Utah for two purposes: first to produce road base for dust suppression on the mine haul road surface. This will facilitate more efficient travel between the company’s operating mines and the Flotation Mill; and second to, perform ore crushing services during the Flotation Mill’s first operating year. As soon as Quality completes the road base construction, it will commence crushing ore for the Flotation Mill’s concentrator, which is projected to be in late November 2008.

Concentrator and Mill Components

The company anticipates that the concentrator will be online and operational within sixty days or less. As of this press release’s date, nearly all mill components are paid for as construction enters in final phases. The company believes that only small items are left to be purchased, such as vales, meters, etc.

STOCKS TO WATCH

RUSSELL INDUSTRIES INCORPORATED (OTC: RUSL)
"Up 200.00% in morning trading"

Detailed Quote: http://www.otcpicks.com/quotes/RUSL.php

Russell Industries, Inc. primarily engages in uranium and vanadium exploration, and mining development businesses. As of September 25, 2007, the company owned a majority ownership interest in 254 uranium mining claims in San Juan County, Utah. The company was incorporated in 1997 and is based in The Woodlands, Texas.

RUSL News:

October 13 - Why Uranium is a Hot Commodity and Why Russell Industries is Positioned to Experience Growth in the Present U.S. Economic and Political Environment

Russell Industries, Inc. (OTC: RUSL) finds itself in a unique situation in the midst of the current U.S. economic and political climate. The Company carries no long-term debt, excess inventory, trade debt and vendor obligations, which separates it from the multitude of U.S. companies that are not able to move forward because the present credit crisis is keeping them at a stand still and in many cases forces downsizing or worse. Russell Industries has acquired 255 unpatented uranium mining claims in the last two years and these along with its other assets are debt free which enables it to aggressively pursue new growth opportunities without the necessity of looking backwards. The Company’s corporate structure is attractive to companies looking to merge or buy a publicly traded company that does not come with the financial issues that plague many private and public U.S. companies. Listed below are just a few reasons why Russell Industries can explode in the near future and our shareholder base can potentially see major growth with in the “Company” and the market place as a whole. “We believe that Russell Industries, has the ability to grow it’s business in proportion with the needs of the United States economy, as our position is drastically effected by the issues in today’s world, towards the consumers,” states Rick Berman, President and CEO.

* Growing demand for fuel for the world’s expanding nuclear power capability will drive uranium prices higher.

* Secondary sources of uranium are limited and primary uranium supply must increase to close the large and widening deficit between mine production and reactor requirements.

* Growing demand for fuel for the world’s expanding nuclear power capability will drive uranium prices higher.

* Russell Industries has 255 Unpatented Uranium and Vanadium Mining Claims located in San Juan County Utah.

* San Juan County, Utah, located in the “four corners” of Eastern Utah, is one of the most fertile and mining friendly uranium concentration areas in the United States.

* In terms of underdeveloped uranium resources, Australia is the leading country in the world, but current political policies are likely to preclude the development of new uranium mines in Australia this decade.

The primary business the Company is engaged in is Uranium and Vanadium exploration and mining development. The present interest in alternative energy sources for the U.S. includes nuclear power which is driven by uranium. The only federally-licensed and operating uranium mill in the United States, White Mesa Mill, owned by Denison Mines and is located less than 30 miles from any of the four claim ranges owned by Russell Industries. Uranium began trading on NYMEX in May 2007.

The average weekly price in 2007 was $98.55 a pound, according to leading price publisher Ux Consulting. A survey of 16 analysts conducted over the last month produced an average mid-range price for spot uranium UX-U3O8-SPT of $106.90 per pound in 2008 and $91.90 in 2009, according to publisher Reuters.

Russell Industries, a Nevada Corporation, was incorporated in 1997. The Company is a holding company that will possibly acquire assets in the energy, mining, healthcare and financial industries.

EDGETECH INTERNATIONAL INCORPORATED (OTC: EGIL)
"Up 142.86% in morning trading"

Detailed Quote: http://www.otcpicks.com/quotes/EGIL.php

Edgetech is an authorized distributor of "The PC Edge." "The PC Edge" is the Fastest Mobile Internet Device which delivers High Speed Internet Access, displaying full HTML web pages, graphics and java script. "The PC Edge" offers a desktop web experience, together with a full QWERTY Keyboard, Access to Office Suite of programs, 50 GB storage and Remote PC access. The Company's executive office facility is located at 4401 W Tradewinds Ave, suite 201, Lauderdale by the Sea, Florida 33308. Its telephone number is 954-772-7782 and its website address is www.thepcedge.com.

EGIL News:

October 13 - Edgetech International, Inc. Expands Internet Sales Channel to Include Amazon.com

Together with its wholly-owned subsidiary, Edgetech International, Inc. (OTC: EGIL) (“Edgetech” or the “Company”) announced that The PC Edge is now available for purchase on Amazon.com. It can be found by searching "The PC Edge Palm-Sized Computer with High Speed Internet" on Amazon.com.

Through our new relationship with Amazon.com, the PC Edge and its line of accessories are now available for purchase. The PC Edge can be found several ways through the popular search engines such as Google, Yahoo, and Ask, as well as in the Electronics department on Amazon.com.

"The PC Edge" is the Fastest Mobile Internet Device which delivers High Speed Internet Access, displaying full HTML web pages, graphics and java script. "The PC Edge" offers a desktop web experience, together with a full QWERTY Keyboard, Access to Office Suite of programs, 50 GB storage and Remote PC Access.

Edgetech CEO Lev Parnas stated, "As we move forward with our plan to prepare for the 2008 holiday season, we have increased our internet sales channel presence through this relationship with Amazon.com. We will continue to look to increase our retail and internet sales channel as a part of our strategic business plan."

ABOUT AMAZON.COM

Amazon.com, Inc., a Fortune 500 company based in Seattle, opened on the World Wide Web in July 1995 and today offers Earth's Biggest Selection. Amazon.com, Inc., seeks to be Earth's most customer-centric company, where customers can find and discover anything they might want to buy online, and endeavors to offer its customers the lowest possible prices. Amazon.com and other sellers offer millions of unique new, refurbished and used items in categories such as books, movies, music & games, digital downloads, electronics & computers, home & garden, toys, kids & baby, grocery, apparel, shoes & jewelry, health & beauty, sports & outdoors, and tools, auto & industrial.

CONSTAR INTERNATIONAL INCORPORATED (NASDAQ: CNST)
"Up 149.85% in morning trading"

Detailed Quote: http://www.otcpicks.com/quotes/CNST.php

Philadelphia-based Constar is a leading global producer of PET (polyethylene terephthalate) plastic containers for food, soft drinks and water. The Company provides full-service packaging solutions, from product design and engineering, to ongoing customer support. Its customers include many of the world's leading branded consumer products companies.

CNST News:

October 10 - Constar International Inc. and Pepsi Sign a New Four Year Agreement

Constar International Inc. (Nasdaq: CNST) announced that it has executed a four year agreement for supply of PET packaging products to Pepsi. The agreement covers supply of both bottles and preforms for cold fill applications beginning on January 1, 2009. As expected, compared to the existing agreement, the new agreement provides for a reduction in total volumes with a mix shift towards fewer bottles and more preform volume.

Constar’s CEO, Michael Hoffman, commented, “Pepsi is a key long term customer of Constar’s. We are proud that they have again put their confidence in us as a critical supply chain partner. We believe that our negotiations have brought us to a mutually beneficial agreement.”

In conjunction with the signing of the new supply contract with Pepsi, Constar is undertaking a plan of restructuring to reduce the Company’s overhead cost structure. The estimated annual cash overhead savings from the restructuring, including the savings from the previously disclosed closure of the Company’s Houston Texas facility, is expected to be approximately $28-32 million.

Based upon the Company’s current estimates, the Company believes that the new Pepsi agreement will result in lower sales but, after taking into account the expected net reduction in costs from the restructuring program, will result in higher cash flows from operating activities, net of investing activities as compared to those realized from the Pepsi cold fill business in 2008.

EVOTEC AG (NASDAQ: EVTC)
"Up 67.74% in morning trading"

Detailed Quote: http://www.otcpicks.com/quotes/EVTC.php

Evotec is a leader in the discovery and development of novel small molecule drugs. Both through its own discovery programs and through research collaborations, it is generating the highest quality research results to its partners in the pharmaceutical and biotechnology industries. In proprietary projects, Evotec specializes in finding new treatments for diseases of the Central Nervous System. Evotec has four programs in clinical development: EVT 201, a partial positive allosteric modulator (pPAM) of the GABAA receptor complex for the treatment of insomnia, EVT 302, a MAO-B inhibitor in development for smoking cessation, EVT 101, a subtype selective NMDA receptor antagonist for the treatment of Alzheimer's disease and/or pain, and a P2X7 antagonist for the treatment of inflammatory diseases. In addition, Evotec has a number of proprietary projects in preclinical development as well as a worldwide license agreement with Pfizer to research, develop and commercialize small molecule vanilloid receptor (VR1) antagonists for the treatment of pain.

EVTC News:

October 9 - Evotec Announces Phase I Initiation With P2X7 Antagonist

Evotec AG (Nasdaq: EVTC) (Frankfurt: EVT.F) announced that Phase I clinical studies for its proprietary, small molecule P2X7 receptor antagonist have been initiated.

The P2X7 receptor is an ATP-gated ion channel primarily expressed on cells of the immune system and is thought to play an important role in inflammatory processes through the regulation of a number of proinflammatory cytokines. P2X7 receptor antagonism may provide a novel approach to the treatment of rheumatoid arthritis and other inflammatory conditions, which affect millions of individuals.

The first Phase I study is a double-blind and placebo-controlled single ascending dose study in healthy male volunteers to evaluate the compound's safety, tolerability, pharmacokinetic profile and pharmacodynamic effects after oral administration.

Michael G Kelly, Ph.D., President, Renovis, Inc., Evotec's U.S. subsidiary, commented: "We are extremely pleased to announce today the achievement of this second important clinical milestone at our U.S. site following its integration into Evotec earlier this year. The initiation of Phase I studies with our P2X7 receptor antagonist is the culmination of the efforts of many of our dedicated R&D staff over the past few years and we have high expectations as we progress further into development."

MCG CAPITAL CORPORATION (NASDAQ: MCGC)
"Up 7.14% in morning trading"

Detailed Quote: http://www.otcpicks.com/quotes/MCGC.php

MCG Capital Corporation is a solutions-focused commercial finance company providing capital and advisory services to middle market companies throughout the United States. Our investment objective is to achieve current income and capital gains. Our capital generally is used by our portfolio companies to finance acquisitions, recapitalizations, buyouts, organic growth and working capital.

MCGC News:

October 9 - MCG Capital Announces Appointment of Chief Financial Officer

MCG Capital Corporation (Nasdaq: MCGC) (“MCG”) announced that Michael McDonnell, Chief Operating Officer, Executive Vice President and Chief Financial Officer, resigned his positions effective November 7, 2008 to pursue another opportunity outside of the financial services industry. Effective November 7, 2008, Stephen J. Bacica, the Company's Senior Vice President and Chief Accounting Officer, will assume the position of Executive Vice President and Chief Financial Officer.

"Mike has provided sound business and financial counsel during his tenure with MCG. We appreciate his years of service and many contributions to the Company, and we wish him success with his new opportunity," said Steve Tunney, President and Chief Executive Officer of MCG. "We believe the current senior management and finance teams are well-positioned to assume Mike's responsibilities."

"I have enjoyed my time at MCG and wish the Company future success," said Mike McDonnell. "I am proud of the team we have assembled and have every confidence in their abilities. The opportunity to return to the satellite industry was something that was extremely appealing to me and I look forward to my upcoming challenges."

Mr. McDonnell has served as MCG's Chief Operating Officer since August 2006 and as Executive Vice President, Chief Financial Officer and Treasurer since September 2004.

AUDIOVOX CORPORATION (NASDAQ: VOXX)
"Up 20.29% in morning trading"

Detailed Quote: http://www.otcpicks.com/quotes/VOXX.php

Audiovox is a recognized leader in the marketing of automotive entertainment, vehicle security and remote start systems, consumer electronics products and consumer electronics accessories. The company is number one in mobile video and places in the top ten of almost every category that it sells. Among the lines marketed by Audiovox are its mobile electronics products including mobile video systems, auto sound systems including satellite radio, vehicle security and remote start systems; consumer electronics products such as MP3 players, digital camcorders, DVRs, clock radios, portable DVD players, portable GPS, flat-panel TV's, extended range two-way radios, multimedia products like digital picture frames and home and portable stereos; consumer electronics accessories such as indoor/outdoor antennas, connectivity products, headphones, speakers, wireless solutions, remote controls, power & surge protectors and media cleaning & storage devices; Energizer-branded products for rechargeable batteries and battery packs for camcorders, cordless phones, digital cameras and DVD players, as well as for power supply systems, automatic voltage regulators and surge protectors. The company markets its products through an extensive distribution network that includes power retailers, 12-volt specialists, mass merchandisers and an OE sales group. The company markets products under the Audiovox, RCA, Jensen, Acoustic Research, Energizer, Advent, Code Alarm, TERK, Prestige and SURFACE brands.

VOXX News:

October 10 - Audiovox Corporation Reports Fiscal 2009 Second Quarter and Six Months Results

Audiovox Corporation (Nasdaq: VOXX) announced results for its fiscal 2009 second quarter and six months ended August 31, 2008.

Net sales for the quarter ended August 31, 2008 were $147.2 million compared to net sales of $148.3 million reported in the comparable prior year period. Net loss during the quarter ended August 31, 2008 was approximately $2.3 million or a loss of $0.10 per diluted share, compared to net income of $3.7 million or earnings per diluted share of $0.16 in the comparable period last year.

Patrick Lavelle, President and CEO stated, "Our results this quarter and throughout the first half of the year are reflective of a deteriorating global economy, as consumer confidence continues to suffer, particularly in the U.S. Our sales and margins have been impacted by a decline in consumer spending and lower automotive sales. As a result, we have taken aggressive steps to better align our operations beyond what was previously forecasted. Price increases instituted in the second quarter and recent overhead reductions should position us for a profitable second half of the year."

Lavelle added, "Economic forces will continue to hinder our growth and ability to generate the types of returns we believed we were capable of delivering following last year's acquisitions. However, I am encouraged by our presence at retail, which is the strongest in our Company's history and we have improved our competitive position in many of our primary market categories. Our balance sheet and cash position remain healthy and that should provide us with advantages and opportunities to expand, both near and long-term."

Electronics sales, which include both mobile and consumer electronics were $111.7 million for the quarter ended August 31, 2008, an increase of 4.1% compared to $107.3 million reported in the comparable fiscal 2008 period. This increase is primarily related to incremental sales generated from the RCA Audio/Video operations and increases in the Company's operations in Germany, Mexico and Venezuela. Offsetting these increases were declines in select mobile, audio and video categories due to the weakening U.S. economy. Additionally, sales were impacted by the discontinuance of certain less profitable categories such as portable navigation and LCD flat-screen televisions.

Accessories sales for the fiscal 2009 second quarter were $35.5 million, a decrease of 13.4% compared to $41.0 million reported in the period ended August 31, 2007 and are a result of the overall decline of the U.S. economy. This decrease was partially offset by sales of $3.5 million generated from the Technuity acquisition in November 2007.

For the period ended August 31, 2008, gross margins were 17.0% compared to 19.2% during the period ended August 31, 2007. Gross margins were adversely impacted by several factors, including the cost of production, increases in material, labor and energy costs and increases in foreign currency exchanges versus the U.S. dollar. Additionally, the Company continued to experience higher inbound and outbound freight, warehouse and assembly costs in the year-over-year periods. As previously announced, the Company has instituted price increases across the board, most of which took effect in the fiscal 2009 third quarter. These increases, new product introductions and other steps should have a positive impact on the Company's gross margins moving forward.

The Company reported operating expenses of $29.1 million for the three months ended August 31, 2008, compared to $24.6 million reported in the comparable period last year. The increase in total operating expenses is primarily due to approximately $4.6 of expenses related to the acquired businesses of Technuity and the RCA A/V operations and $1.0 million in workforce reduction charges.

During the second quarter, the Company approved a plan to further reduce operating costs in light of the current economic climate. As a result, headcount for the quarter was reduced by approximately 8% and the Company anticipates a cost savings in salary and compensations expenses of approximately $6.0 million on an annualized basis. In addition to the reduction in work force expenses, the Company anticipates further operational savings from the second quarter plan.

Six Months Results

Total net sales for the six month period ended August 31, 2008 were $291.8 million, an increase of 5.5% compared to net sales of $276.5 million in the six month period ended August 31, 2007. Electronics sales for the fiscal 2009 six month period were $225.4 million, up 11.4% compared to $202.2 million in the comparable fiscal 2008 period. This increase was primarily due to incremental sales generated from the acquired RCA Audio/Video operations, increased sales in core consumer product lines and higher sales volumes in Germany, Mexico and Venezuela. Accessories sales for the fiscal 2009 six month period were $66.4 million, down 10.6% compared to $74.3 million in the same period last year. Both electronics and accessories sales continued to be impacted by the overall decline in the U.S. economy.

Gross margins decreased by 240 basis points from 18.7% during the first six months of fiscal 2008 to 16.3% in the first six months of fiscal 2009. Gross margins were unfavorably impacted by the Company's decision to exit the portable navigation business, which was reported in the 2009 first fiscal quarter, resulting in a charge of $2.9 million or approximately 1.0% of gross margin. Additionally, higher costs associated with manufacturing, labor, transportation, energy and warehousing adversely impacted gross margins in fiscal 2009 as compared to the prior year period.

Operating expenses increased $10.2 million or 20.7% to $59.5 million for the six months ended August 31, 2008, from $49.3 million for the six months ended August 31, 2007. The increase in total operating expenses is due to $1.0 million of workforce reduction charges and incremental costs of $9.0 million related to costs associated with the recently acquired Technuity and RCA Audio/Video operations. Additionally, operating expenses for the six months ended August 31, 2007 included a $1.0 million benefit related to a call/put option previously granted to certain employees as a result of the reduction in the call/put liability calculation.

Net loss was $7.5 million or a loss of $0.33 per diluted share in the fiscal 2009 six month period compared to net income of $6.0 million or earnings per diluted share of $0.26 comparable in the period ended August 31, 2007. Net income for the fiscal 2008 period ended August 31, 2007 was favorably impacted by $2.1 million in income from discontinued operations as a result of a derivative legal settlement.