/C O R R E C T I O N -- TROY Group, Inc./

In the news release, TROY Group, Inc. Posts Third Quarter Fiscal Year 2007 Results, issued yesterday, Oct. 8, by TROY Group, Inc. over PR Newswire, the second table, "CONDENSED CONSOLIDATED STATEMENTS OF INCOME" was incorrectly formatted by PR Newswire. The complete, corrected release follows:



COSTA MESA, Calif., Oct. 8  /PRNewswire-FirstCall/ -- TROY Group, Inc. (Pink Sheets: TROY) today announced that financial results for the third quarter of fiscal year 2007 which ended August 31, 2007, 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 third quarter 2007 financial results are also posted at http://www.pinksheets.com/. Enter TROY in the symbol field then click on Financial Report.

Revenue for the three months ended August 31, 2007 increased to $11.5 million compared to revenue for the three months ended August 31, 2006 of $9.9 million. Earnings from continuing operations for the three months ended August 31, 2007 were $0.09 per share compared to earnings from continuing operations for the three months ended August 31, 2006 of $0.07 per share.

Revenue for the nine months ended August 31, 2007 increased to $36.5 million compared to revenue for the nine months ended August 31, 2006 of $33.2 million. Earnings from continuing operations for the nine months ended August 31, 2007 and the nine months ended August 31, 2006 were $0.28 per share.

The consolidated balance sheet and consolidated statements of income are attached to this press release.  For further analysis and detail see the above sites.

                           FINANCIAL STATEMENTS
                             TROY GROUP, INC.
                  CONDENSED CONSOLIDATED BALANCE SHEETS

            (in thousands, except share and per share amounts)

  Assets                                  August 31,        November 30,
                                             2007               2006
                                         (unaudited)
  Current assets:
  Cash and cash equivalents              $    584           $    350
  Investment in available-for-sale
   securities                              14,250              9,650
  Accounts receivable, net of
   allowance for doubtful accounts
   2007 $277; 2006 $322                     5,064              5,788
  Inventories                               3,549              3,980
  Prepaid expenses and other                  984                917
  Deferred tax assets                         806                874
  Total current assets                     25,237             21,559
  Equipment and leasehold
   improvements, net                        1,804              2,126
  Goodwill                                    281                281
  Other assets, including
   receivables from stockholders
   of $1,903                                3,295              3,324
  Total assets                           $ 30,617           $ 27,290


                   Liabilities and Stockholders' Equity

  Current liabilities:
  Accounts payable                       $  2,917           $  4,310
  Accrued expenses                          2,193              3,171
  Deferred revenue                          3,128              1,994
  Total current liabilities                 8,238              9,475

  Long-term liability                         669                 --

  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
   10,563,701 shares                          106                106
  Additional paid-in capital               21,403             20,510
  Retained earnings (deficit)                 201             (2,801)
  Total stockholders' equity               21,710             17,815
  Total liabilities and
   stockholders' equity                  $ 30,617           $ 27,290


         See Notes to Condensed Consolidated Financial Statements



                             TROY GROUP, INC.
               CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                               (unaudited)
                 (in thousands, except per share amounts)

                          Three Months Ended         Nine Months Ended
                         August 31,   August 31,   August 31,  August 31,
                           2007         2006         2007        2006

  Net sales              $11,472       $9,883      $36,472      $33,174
  Cost of goods sold       6,692        5,797       21,386       19,097
  Gross profit             4,780        4,086       15,086       14,077

  Operating expenses:
  Selling, general and
   administrative          2,681        2,453        8,460        7,799
  Research and development   732          744        2,324        2,162
  Amortization of
   intangible assets           -            -            -           10
  Total operating expenses 3,413        3,197       10,784        9,971
  Operating income         1,367          889        4,302        4,106
  Interest income            176          218          463          617
  Income from continuing
   operations before
   income taxes            1,543        1,107        4,765        4,723
  Provision for
   income taxes              563          421        1,763        1,795
  Income from continuing
   operations                980          686        3,002        2,928
  Loss from discontinued
   operations, net of tax      -            -            -          (44)
  Gains on disposal of
   discontinued operations,
   net of tax                  -            -            -        4,984
  Discontinued operations,
   net of tax                  -            -            -        4,940
  Net income                $980         $686       $3,002       $7,868

  Net income per share:
  Basic income from
   continuing operations   $0.09        $0.07        $0.28        $0.28
  Basic income from
   discontinued operations     -            -            -         0.47
  Basic income             $0.09        $0.07        $0.28        $0.75
  Diluted income from
   continuing operations   $0.09        $0.07        $0.28        $0.28
  Diluted income from
   discontinued operations     -            -            -         0.47
  Diluted income           $0.09        $0.07        $0.28        $0.75
  Weighted average shares
   outstanding:
  Basic                   10,564       10,468       10,564       10,462
  Diluted                 10,631       10,508       10,595       10,496


         See Notes to Condensed Consolidated Financial Statements



  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.

  Contact:   Dennis C. Fairchild
             Vice President & CFO
             [phone]
             [phone]


DATASOURCE: TROY Group, Inc.



CONTACT:  Dennis C. Fairchild, Vice President & CFO of TROY Group, Inc.,

[phone], [phone]



Web site:  http://www.troygroup.com/ 

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