Note 4 - Debt and Line of Credit:

6 Months Ended

Feb. 26, 2012

4.	DEBT AND LINE OF CREDIT:

During the quarter ended February 26, 2012, the Company entered into a capitalized lease of approximately $383,000 in connection with the acquisition of machinery and equipment. The lease carries an interest rate of approximately 4.15% and matures in 2018.

During the quarter ended February 26, 2012, the Company renewed its Revolving Line of Credit with its bank. Under the agreement the Company can borrow up to $1 million with the loan being collateralized by all assets of the Company. The agreement expires on February 1, 2013 and carries an interest rate of LIBOR plus 3%. The agreement also contains restrictive provisions requiring a minimum net worth and current ratio, as well as a debt service coverage ratio. At February 26, 2012, the Company was in compliance with these provisions.