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SUNRISE TELECOM INCORPORATED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (preliminary) (In thousands, except per share data, unaudited)

Three Months Ended Sept 30, 2008

Net sales $18,721 Cost of sales 8,212 Gross profit 10,509

Operating expenses: Research and development 4,365 Selling and marketing 5,884 General and administrative 3,455 Restructuring 950 Total operating expenses 14,654

Loss from operations (4,145) Other income, net (967)

Loss before income taxes (5,112) Income tax expense 127

Net loss $(5,239)

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