[November 09, 2007]

Auto-Graphics, Inc. Announces Third Quarter Earnings

POMONA, Calif. --(Business Wire)-- Auto-Graphics, Inc. (OTCBB:AUGR) (Pink Sheets:AUGR), a technology innovator providing library automation solutions for over 35 years, today reported that operating income was $25,000 for the quarter ended September 30, 2007 down $47,000 from $72,000 for the same period in 2006. This performance represents 23 consecutive quarters in which Auto-Graphics has delivered a positive operating income. Operating income for the nine months ended September 30, 2007 was $115,000 down $66,000 from $181,000 for the same period in 2006. Operating income declined due to higher recruiting expenses, additional software development costs to add significant new functionality to the Company's integrated library system, AGent(TM) and additional marketing expenses related to the introduction of the new version of AGent VERSO.

Auto-Graphics' net sales were $1,433,000 for the quarter ended September 30, 2007 up $170,000 or 13% from $1,263,000 for the same period in 2006 due to an increase in revenue from new library contracts. Net sales for the nine months ended September 30, 2007 was $4,087,000 up $263,000 or 7% from $3,824,000 in 2006 due to an increase in implementation and license fees.

Net income was $31,000 for the quarter ended September 30, 2007 down $39,000 from a net income of $70,000 for the same period in 2006. Basic and diluted earnings per share was $0.01 per share in 2007 unchanged from 2006. Net income for the nine months ended September 30, 2007 was $125,000 down $52,000 from $177,000 for the same period in 2006. Basic and diluted earnings per share was $0.03 per share in 2007 and 2006, respectively.

Auto-Graphics continued to experience high demand for its AGent VERSO(TM) integrated library system (ILS) during the third quarter. The company implemented five new AGent VERSO systems into public libraries throughout North America. These new customers included, Benton Harbor Public Library - MI, Winn Parish - LA, Lincoln Parish - LA, Sodus Township - MI and Chambers County Library System - TX.

In addition to Auto-Graphics' success in the public library market, the company saw increased demand for AGent VERSO from the library K-12 school community. The company secured orders from Southeast Polk School District - IA, Lyons Public Schools USD 405 - KS, Greeley County Schools - KS, Dowagiac Union Schools - MI. These four K-12 school district entities represent 22 individual school sites now utilizing the AGent VERSO ILS. Auto-Graphics' efforts to reach the public and K-12 school markets wanting to upgrade their legacy ILS to the AGent VERSO system continues to be met with tangible new name sales.

About Auto-Graphics, Inc.

Founded in 1950, Auto-Graphics has been a technology innovator for more than five decades, providing data automation solutions to customers across multiple industries. For the past 35 years, Auto-Graphics has helped libraries of all sizes become more efficient and patron-centric. Its flagship solution, AGent(TM), is one of the most comprehensive library automation platforms available today, allowing libraries of any size to manage, share and search their resources. The AGent integrated product suite - currently used by more than 5,000 libraries in North America - comprises AGent VERSO(TM), a complete ILS system for public libraries; AGent Resource Sharing(TM), a robust Interlibrary Loan solution for consortial entities and member libraries; and AGent Search(TM), a powerful federated search solution for both public and academic libraries. For more information, please visit www.auto-graphics.com.

(C) 2007 Auto-Graphics, Inc. All rights reserved. AGent, AGent VERSO, AGent Resource Sharing and AGent Search are trademarks of Auto-Graphics, Inc. All other trademarks are the property of their respective owners.

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