Q1 FY2007 Results Top End of Guidance ... $12.0 Million Revenue ... Up 12% Year-over-Year ... GAAP EPS including non-cash expenses -- $0.03 Loss ... DBA Group Acquisition Closed and Integrated.
__________________

First quarter 2007 was another record for Zanett, with 12% year-over-year growth in services revenue. We expanded our geographic footprint with the acquisition of the DBA Group in Atlanta, and enter the second quarter at an annualized revenue run-rate of more than $50 million.

Our acquisition pipeline has never been stronger and we continue to execute aggressively against our growth goals. Moreover, we are beginning to see the benefits of operating leverage and scale on our bottom line, which we believe should positively impact profitability in the second quarter.