PRECISION OPTICS CORPORATION 22 EAST BROADWAY GARDNER, MASSACHUSETTS 01440-3338 Telephone 978 / 630-1800 Telefax 978 / 630-1487 POC:27-0337 Page 1 of 4 NEWS RELEASE FOR IMMEDIATE RELEASE Tuesday

OPTICS CORPORATION ANNOUNCES

QUARTER RESULTS AND RECEIPT OF SIGNIFICANT NEW ORDER

Precision Optics Corporation, Inc. (OTC Bulletin Board: POCI.OB), (the

"Company") today announced operating results on an unaudited basis for the first

quarter of fiscal year 2008 ended September 30, 2007.

Quarter Operating Results

revenues for the quarter ended September 30, 2007 were $1,101,728, an increase

of $674,103 or 158% from the same period in the prior year. This represents

second highest quarterly revenue in six years. The increase was due principally

to shipments to a significant new customer of an advanced surgical visualization

system, along with the introduction of other new products. The advanced surgical

visualization system relied heavily on the Company's experience and superior

technology in the area of medical optics systems, specifically in the area

advanced optical endoscopic instrumentation.

the quarter ended September 30, 2007, net loss was $466,848, or $0.02 per share,

a decrease of $221,331 from the net loss of $688,179 or $0.04 per share, for

same period last year. The decrease in net loss is the result of higher sales

volumes along with a corresponding increase in gross profit. Gross profit for

the quarter ended September 30, 2007, as a percentage of revenues, increased

from 10% for the quarter ended September 30, 2006 to 28%. The weighted average

common shares outstanding for the quarters ended September 30, 2007 and 2006

were 25,458,212 and 15,458,212, respectively.

Flow and Expenditures - For

quarter ended September 30, 2007, cash and cash equivalents decreased by

$300,450 compared to a decrease of $755,449 for the same period last

improved decrease in cash and cash equivalents for the quarter ended September

30, 2007 was due primarily from less cash being used in operating activities,

mostly due to higher sales volumes along with an increase in gross profit,

compared to the same period last year.

and development expenses were $302,433 for the quarter ended September 30,

compared to $264,523 for the same period last year.

general and administrative expenses were $475,512, a decrease of $7,512, or

for the quarter ended September 30, 2007 compared to the same period last year.

the current financial condition of the Company and the expectation of future

continued quarterly operating losses during fiscal 2008, management is currently

investigating and evaluating alternatives for raising additional capital through

private and public debt and equity

offerings that can be completed during the second or third quarters of fiscal

2008. In an effort to decrease operating expenses, the Company has recently

begun implementing cost containment plans including work force reductions,

deferring of certain development initiatives and focusing on a limited number

products and technologies expected to provide near term revenues.

initiatives in the area of micro-precision lenses address specific customer

opportunities in different medical specialty applications.

December 2005, 2.7 mm diameter ENT endoscopes have been in production and a

diameter sinuscope was introduced earlier this year. Presently we are announcing

the recent availability of a new 5 mm diameter laparoscope, to be followed

early spring of 2008 by a new widefield arthroscope. In other market areas,

lenses for the new "Color Night Vision System" are to be in pre-production

manufacture within the next few months, including new light weight eyepiece

lenses and a new pre-production order for additional objective lenses.

Company has also recently received a production order of over $400,000 for

new line of optical thin film coatings, developed over the past two years,

following pre-production orders delivered earlier this year.

withstanding the need to obtain additional financing, the Company believes

the recent introduction of several new products, along with new and on-going

customer relationships, has the potential to generate additional revenues,

are required in order for the Company to achieve future profitability.

Optics Corporation, Inc., a developer and manufacturer of advanced optical

instruments since 1982, designs and produces high-quality medical instruments,

optical thin film coatings, micro-optics with characteristic dimensions less

than 1 mm, and other advanced optical systems. The Company's medical

instrumentation line includes laparoscopes, arthroscopes and endocouplers and

line of world-class 3-D endoscopes for use in minimally invasive surgical

procedures. The Company continues to advance products through technical

innovation, including development of: the next generation (patent pending)

3-D endoscopes; the extension of Lenslock technology (patent pending) to its

entire line of endoscopes; instrumentation utilizing the Company's

micro-precision lens technology (patent pending) for optical components,

assemblies and endoscopes under 1 mm. Precision Optics Corporation is registered

to ISO 9001:2000, ISO 13485:2003, and CMDCAS Quality Standards, and complies

with the FDA Good Manufacturing Practices and the European Union Medical Device

Directive for CE Marking of its medical products. The Company's Internet Website

OPTICS CORPORATION, INC. AND SUBSIDIARIES

STATEMENTS OF OPERATIONS

THE THREE MONTHS ENDED

30, 2007 AND SEPTEMBER 30, 2006

OPTICS CORPORATION, INC. AND SUBSIDIARIES

statements contained in this news release, including those related to the

success of Company's newly released products and products under development are

made under "safe harbor" provisions of the Private Securities Litigation

Act of 1995 and involve a number of risks and uncertainties that could

materially affect future results. These risks and uncertainties, many of

are not within the Company's control, include, but are not limited to, the

uncertainty and timing of the successful development of the Company's new

products; decisions by customers to place orders for the Company's products; the

risks associated with reliance on a few key customers; the Company's ability to

attract and retain personnel with the necessary scientific and technical

the timing and completion of significant orders; the timing and amount of

Company's research and development expenditures; the timing and level of market

acceptance of customers' products for which the Company supplies components;

performance of the Company's vendors; the ability of the Company to control

costs associated with performance under fixed price contracts; the continued

availability to the Company of essential supplies, materials and services;

the other risk factors and cautionary statements listed from time to time

Company's periodic reports filed with the Securities and Exchange Commission,