STOCK OPTION PLAN (Tables)

6 Months Ended

Jun. 29, 2012

A summary of activity in the stock option plan for the six months ended June 29, 2012 follows (shares in thousands):

				Weighted-
				Average
	Number			Exercise
	of Shares			Price

Outstanding at beginning of the period		1,151		$	3.74
Granted		101			0.23
Exercised		-			-
Forfeited or expired		(89	)		6.59
Outstanding at end of the period		1,163			3.22

Exercisable at end of the period		994		$	3.68

Assumptions Used in Calculating Fair Value of Options by Black Scholes Option Pricing Model

options under the Company’s stock option plan. The weighted average values of employee stock options granted under the stock option plan, as well as the weighted average assumptions used in calculating these values during the first six months of 2012, were based on estimates at the date of grant as follows:

Risk-free interest rate	0.36	%
Dividend yield	0.0	%
Volatility	396	%
Expected life (in years)	3.5