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Dutton Associates Announces Investment Opinion: Memry Buy Rating Maintained In Update Coverage By Dutton Associates

Posted on: Thursday, 27 September 2007, 12:00 CDT

Dutton Associates updates its coverage of Memry Corporation (AMEX: MRY) maintaining a Buy rating and a $2.00 price target. The 18-page report by Dutton senior analyst Sally H. Wallick, CFA is available at www.jmdutton.com as well as from First Call, Bloomberg, Zacks, Reuters, Knobias, and other leading financial portals.

Memry markets products using the Company's proprietary shape memory alloy (SMA) and polymer-extrusion technologies. Memry's principal SMA is a nickel-titanium alloy called nitinol. Approximately 95% of the Company's sales are to the medical device industry. Memry reported a 1.1% decline in 4Q fiscal 2007 (6/30) revenue to $13.1 million and a net profit of $42,000, or $0.00 EPS. Full-year fiscal 2007 revenue totaled $51.7 million, down 1.7% year over year. The year's net profit was $317,000, or $0.01 EPS, compared with net income of $2.7 million, or $0.09 EPS, in the prior fiscal year. We are encouraged by signs that Memry's research and development and new product initiatives are beginning to pay off, by the sequential improvement in fourth quarter revenue, and by the period's return to a net profit following two quarterly net losses. As a result, we are optimistic that revenue and earnings will rebound in fiscal 2008 and fiscal 2009 from fiscal 2007's depressed levels. Our fiscal 2008 and 2009 diluted earnings estimates are $0.04 per share and $0.09 per share, respectively. When Memry reported third quarter earnings in May 2007, management noted that the Company had embarked on a more proactive acquisition strategy, with an objective of completing an acquisition in fiscal 2008. However, in light of the uncertainty inherent in the acquisition strategy, our fiscal 2008 and 2009 estimates do not take into account any acquisitions.

About Dutton Associates

Dutton Associates is one of the largest independent investment research firms in the U.S. Its 31 senior analysts are primarily CFAs and have expertise in many industries. Dutton Associates provides continuing analyst coverage of over 140 enrolled companies, and its research, estimates, and ratings are carried in all the major databases serving institutions and online investors.

The cost of enrollment in our one-year continuing research program is US $35,000 prepaid for 4 Research Reports, typically published quarterly, and requisite Research Notes. Dutton Associates received $67,950 from the Company for 8 Research Reports with coverage commencing on 9/09/2005. We do not accept payment of our fees in company stock. Our principals and analysts are prohibited from owning or trading in securities of covered companies. The views expressed in this research report accurately reflect the analyst's personal views about the subject securities or issuer. Neither the analyst's compensation nor the compensation received by us is in any way related to the specific ratings or views contained in this research report or note. Please read full disclosures and analyst background at www.jmdutton.com before investing.

Source: Business Wire

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