STEN Corp. Reports 2008 Second-Quarter Revenue of $4.3 Million and Improved Results From Operations

MINNEAPOLIS, May 14 STEN Corporation(Nasdaq: STEN), a Minneapolis-based diversified business, today reportedresults for its second fiscal quarter comprised of the thirteen week periodended March 30, 2008. The Company reported a net after-tax loss of $502,273or $(.20) per diluted share for the second quarter period ended March 30,2008. Revenues from continuing operations for the thirteen week period endedMarch 30, 2008 were $4,298,816, an increase of approximately 340 percent, or$3,343,120 from $955,696 for comparable period one year ago. The secondquarter loss per share represented an improvement of $.15 per share from thefirst quarter of fiscal 2008. The Company's Stencor business accounted for$629,289, or 14.5%, of total revenue and the STEN Financial unit, includingretail vehicle sales, contributed $3,669,527 in revenue for the period endedMarch 30, 2008. The Company reported a net loss of $1,303,857 or $(.61) perdiluted share for the twenty-six weeks ended March 30, 2008. The loss in thesecond quarter of fiscal 2008 represented financial performance below theCompany's previously disclosed plan. The short-fall from our plan resultedfrom a greater than anticipated number of loan defaults and repossessions fromthird-party dealer finance contracts and the impact of a delay in shippingcertain product at Stencor. The Company has adjusted the approach to itsbusiness in the finance area to place a greater emphasis on financing salesfrom its own locations where it has a greater control of the underwritingprocess, and in addition it has reduced the level of purchases of financecontracts from third-party auto-dealers where credit performance has beenbelow expectations.

Commenting on the second quarter results and the current outlook, KennethBrimmer, CEO, noted, "We are disappointed that we did not achieve ourprofitability goal in the second quarter and we see this mainly the result ofreserves and write-offs related to third-party dealer customers that we nolonger are doing business with and where we concluded we needed to recognizeadditional allowances for credit losses at the end of the period. We continueto make progress in all areas of our businesses. The increased emphasis onour company-initiated financing contracts will be a positive factor in ourperformance. Building on our recent initiatives, and considering the currenttrends, we now see revenue in the second half of fiscal 2008 ending September30, exceeding $10 million and are forecasting after-tax earnings per sharefrom continuing operations for the six month period to be in the range of $.20per share. As we look ahead to fiscal 2009, we believe that we have improvedon our basic business model and see total revenue for the year exceeding $25million and are forecasting earnings of $.50-$.60 per share."

STEN Corporation and Subsidiaries, headquartered in Minnesota, is adiversified business, primarily focused on its financing business and buy-herepay-here retail vehicle sales business through STEN Financial Corporation.The Company's Stencor business is a contract manufacturing business anddistribution business. In addition to manufacturing medical and industrialproducts, the company manufactures and distributes ZERO BUG ZONE(TM) anenvironmentally-friendly pest-eliminator and Stencor also distributes LiquidFilter(TM) a unique product which enhances indoor air quality. These productsare available at http://www.gozbiz.com.

STEN Corporation common stock is traded on the Nasdaq Capital Market underthe symbol STEN. More information about STEN Corporation is available at theCompany's website: http://www.stencorporation.com. Except for historicalinformation contained herein, the disclosures in this news release areforward-looking statements that could be affected by certain risks anduncertainties, and actual results may differ materially, depending on avariety of factors. These risks are

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