HSR Hi-Shear Technology Corp

Hi-Shear Technology Corporation (NYSE Amex: HSR) today announced results for its fiscal year ended May 31, 2009. Net income for the fiscal year grew 89% to $6,676,000, representing earnings of $0.98 per share, compared to the net income of $3,540,000 or $0.52 per share for the same period last year. The net income is driven by the growth in product gross margins and a favorable litigation settlement. The settlement amount was less than the amount previously accrued. This resulted in an increase to the pre-tax income of approximately $1,324,000 in the fourth quarter after costs of related legal fees and incentive compensation. Revenues recognized during fiscal year 2009 were $25,933,000 compared to the $27,628,000 of revenues recognized during fiscal year 2008. Some customer delays in releasing their requirements to the company resulted in the revenue decrease for the year. Although these orders were subsequently placed with the Company later during the fiscal year, the delays extended some recognition of revenue on those orders to fiscal year 2010.

Positive earnings supported the distribution of dividends to shareholders of $.50 per share in October 9, 2008 and $0.75 per share to be distributed in August 2009.

“We are pleased to report that improved operating profits, increased manufacturing efficiencies, and a favorable litigation settlement resulted in our positive earnings for the 2009 fiscal year. We are proud of the continuing recognition given to Hi-Shear by its customers who continually rely on the company to support their key space and defense missions,” stated George W. Trahan, President and CEO.

Hi-Shear Technology Corporation provides pyrotechnic, mechanical, and electronic products to prime aerospace customers for use in aerospace and defense markets where safety, performance and high reliability are essential. It develops and produces advanced systems and products that are primarily used worldwide in space satellites, launch vehicles, national defense, and government programs.

This release, as it relates to product announcements and other Company matters, contains forward-looking statements, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that all forward-looking statements involve risks and uncertainties including, without limitation, risks related to market acceptance of and demand for the Company’s new products, dependence on the uncertainty of government budgetary issues, primary government contracts, and intellectual property rights.

The Company’s Form 10-KSB will be filed with the Securities and Exchange Commission on or about August 5, 2009. The 10-KSB will be available for download at www.hstc.com. For more information regarding this release or general information about the company contact Ms. Linda A. Nespole, (310) 784-7821.

BALANCE SHEET May 31, 2009   ASSETS:       Current Assets: Cash and cash equivalents $ 7,502,000

Accounts receivable, net

10,746,000

Inventories, net

1,512,000

Deferred income taxes

972,000 Prepaid expenses and other current assets 229,000 Total current assets $ 20,961,000  

Land

846,000

Equipment, net

1,977,000 Total assets $ 23,784,000   LIABILITIES AND STOCKHOLDERS' EQUITY:       Current Liabilities: Trade accounts payable 611,000

Accrued liabilities

4,353,000

Deferred revenue

182,000

Current portion of obligations under capital leases

40,000 Total current liabilities $ 5,186,000  

Deferred income taxes

347,000

Obligation under capital leases (less current portion)

23,000 Total liabilities $ 5,556,000  

Commitments and Contingencies

Stockholders' Equity Preferred stock, $1.00 par value; 500,000 shares authorized; no shares issued 0 Common stock, $.001 par value - 25,000,000 shares authorized; 6,829,041 and 6,819,291 shares issued

and outstanding at May 31, 2009

7,000 Additional paid-in capital 8,055,000 Retained earnings 10,166,000 Total stockholders' equity $ 18,228,000   Total liabilities and stockholders' equity $ 23,784,000   STATEMENTS OF OPERATIONS

Year Ended May 31, 2009

          2009       2008   Revenues $ 25,933,000 $ 27,628,000   Cost of Revenues 12,285,000   14,827,000   Gross Margin 13,648,000 12,801,000   Selling, General and Administrative Expenses 2,513,000 7,259,000   Operating Income 11,135,000 5,542,000   Interest Income (Expense), Net (40,000 ) 44,000   Income before Income Tax Expense 11,095,000 5,586,000   Income Tax Expense 4,419,000   2,046,000   Net Income $ 6,676,000   $ 3,540,000     Earnings per Common Share - Basic $ 0.98   $ 0.52 Earnings per Common Share - Diluted $ 0.98   $ 0.52   Weighted # Common Shares Outstanding: Basic 6,821,000   6,808,000 Diluted 6,834,000   6,825,000