Forward Reports Fiscal 2008 First Quarter Results

FORWARD INDUSTRIES, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (UNAUDITED) Three Months Ended December 31, ---------------------- 2007 2006 ----------- ---------- Net sales $4,953,090 $7,434,422 Cost of goods sold 3,835,270 5,477,712 ----------- ---------- Gross profit 1,117,820 1,956,710 ----------- ---------- Operating expenses: Selling 779,705 850,911 General and administrative 934,924 895,114 ----------- ---------- Total operating expenses 1,714,629 1,746,025 ----------- ---------- (Loss) income from operations (596,809) 210,685 ----------- ---------- Other income: Interest income 239,619 241,290 Other income, net 13,497 10,733 ----------- ---------- Total other income 253,116 252,023 ----------- ---------- (Loss) income before provision (benefit) for income taxes (343,693) 462,708 (Benefit) provision for income taxes (56,629) 90,000 ----------- ---------- Net (loss) income $ (287,064) $ 372,708 =========== ========== Net (loss) income per common and common equivalent share Basic $ (0.04) $ 0.05 =========== ========== Diluted $ (0.04) $ 0.05 =========== ========== Weighted average number of common and common equivalent shares outstanding Basic 7,855,439 7,861,438 =========== ========== Diluted 7,855,439 7,978,869 =========== ==========

FORWARD INDUSTRIES, INC. CONSOLIDATED BALANCE SHEETS December 31, September 30, 2007 2007 ------------ ------------- Assets (Unaudited) ------------------------------------------- Curr
ent assets: Cash and cash equivalents $21,298,124 $20,267,791 Accounts receivable, net 3,925,324 4,135,117 Inventories, net 1,355,400 1,072,360 Prepaid expenses and other current assets 626,604 628,786 Deferred tax asset 309,461 279,741 ------------ ------------- Total current assets 27,514,913 26,383,795 Property, plant, and equipment, net 162,956 160,644 Deferred tax asset -- 29,898 Other assets 77,409 57,538 ------------ ------------- Total assets $27,755,278 $26,631,875 ============ ============= Liabilities and Shareholders' equity ------------------------------------------- Current liabilities: Accounts payable $ 3,176,938 $ 1,904,946 Accrued expenses and other current liabilities 427,264 303,185 ------------ ------------- Total current liabilities 3,604,202 2,208,131 Commitments and contingencies Shareholders' equity: Preferred stock, par value $0.01 per share; 4,000,000 shares authorized; no shares issued -- -- Common stock, par value $0.01 per share; 40,000,000 shares authorized, 8,488,932 shares issued (including 633,493 held in treasury) 84,889 84,889 Capital in excess of par value 15,560,442 15,546,046 Treasury stock, 633,493 shares at cost (1,085,057) (1,085,057) Retained earnings 9,590,802 9,877,866 ------------ ------------- Total shareholders' equity 24,151,076 24,423,744 ------------ ------------- Total liabilities and shareholders' equity $27,755,278 $26,631,875 ============ =============