MINNEAPOLIS, Aug. 13 /PRNewswire-FirstCall/ -- STEN Corporation (Nasdaq: STEN), a Minneapolis-based diversified business, today reported results for its third fiscal quarter thirteen-week period ended June 29, 2008. The Company reported a net after-tax loss of $292,011 or $(.12) per diluted share for the third quarter period ended June 29, 2008. Revenues for the thirteen-week period ended June 29, 2008 were $5,035,913, an increase of 377 percent, or $3,979,309 from $1,056,604 for comparable period one year ago. The third quarter loss per share represented an improvement of $.08 per share from the second quarter of fiscal 2008. The Company's Stencor business accounted for $556,411, or 11%, of total revenue and the STEN Financial unit, including retail vehicle sales, contributed $4,479,502 in revenue for the third-quarter period ended June 29, 2008. The Company reported a net loss of $1,595,866 or $(.65) per diluted share for the thirty-nine weeks ended June 29, 2008. The loss in the third quarter ended June 29, 2008 resulted from costs associated with third-party auto dealer customers on business arrangements no longer utilized by the company. Also, following the end of the third quarter, STEN completed the sale of four retail check cashing and loan stores and therefore the results of this business and its disposition are reflected as discontinued operations.

Commenting on the third quarter and the current outlook, Kenneth Brimmer, CEO, noted, "We continue to make progress. The repositioning of our auto finance business to a focus on company-initiated finance contracts is delivering encouraging results. The recent sale of our check cashing business will allow us to focus on our core activities. As we look ahead to fiscal 2009, we will continue to build on our recent progress and see total revenue for the year exceeding $25 million and we are forecasting after-tax earnings from continuing operations in the range of $.35 to $.45 per share."

STEN Corporation and subsidiaries, headquartered in Minnesota, is a diversified business, primarily focused on its financing business and buy-here pay-here retail vehicle sales business through STEN Financial Corporation. The Company's Stencor business is a contract manufacturing business and distribution business. In addition to manufacturing medical and industrial products, the company manufactures and distributes ZERO BUG ZONE(TM) an environmentally-friendly pest-eliminator and Stencor also distributes Liquid Filter(TM) a unique product which enhances indoor air quality. These products are available at http://www.gozbiz.com.

STEN Corporation common stock is traded on the Nasdaq Capital Market under the symbol STEN. More information about STEN Corporation is available at the Company's website: http://www.stencorporation.com. Except for historical information contained herein, the disclosures in this news release are forward-looking statements that could be affected by certain risks and uncertainties, and actual results may differ materially, depending on a variety of factors. These risks are described in the Company's filings with the Securities and Exchange Commission. The Company undertakes no duty or obligation to update any of the forward-looking statements after the date of this release.





                      STEN CORPORATION AND SUBSIDIARIES
                    CONSOLIDATED STATEMENTS OF OPERATIONS
                                 (unaudited)

                          For the       For the       For the      For the
                          thirteen      thirteen    thirty-nine  thirty-nine
                         weeks ended   weeks ended  weeks ended  weeks ended
                        June 29, 2008 July 1, 2007 June 29, 2008 July 1, 2007

    REVENUES
      Stencor sales       $556,411      $304,454     $1,513,766     $951,902
      Vehicle sales,
       interest,
       and other         4,479,502       752,150      9,305,595    1,153,356
    TOTAL REVENUES       5,035,913     1,056,604     10,819,361    2,105,258

    COST AND EXPENSES
      Costs of goods
       sold related
       to Stencor          533,637       394,255      1,457,496    1,147,863
      Expenses related
       to STEN Financial
        Cost of
         autos sold      2,575,875       219,235      5,776,600      281,535
        Salaries and
         benefits          324,683       231,370        942,356      405,208
        Occupancy and
         operation
         expenses          207,232        87,784        513,391      137,148
        Depreciation
         and amortization   61,993        60,940        187,140      137,884
        Provision for
         credit losses     692,085        88,319      1,484,331       95,305
        Interest
         expense, net      761,567       193,196      2,006,140      318,291
      Selling, general
       and administrative  305,250       240,764        866,455      695,861

    TOTAL COST
     AND EXPENSES        5,462,322     1,515,863     13,233,909    3,219,095

          Loss from
           Continuing
           Operations
           Before
           Income Taxes   (426,409)     (459,259)    (2,414,548)  (1,113,837)

    BENEFIT FROM
     INCOME TAXES         (159,900)     (176,705)      (902,598)    (412,100)
    NET LOSS FROM
     CONTINUING
     OPERATIONS           (266,509)     (282,554)    (1,511,950)    (701,737)

      Income (loss)
       from
       Discontinued
       Operations          (40,802)       56,669       (134,484)    (274,017)
      Provision for
       (benefit from)
       income taxes
       from Discontinued
       Operations          (15,300)       21,805        (50,568)    (110,100)
      Net income
       (loss) from
       discontinued
       operations          (25,502)       34,864        (83,916)    (163,917)

    NET LOSS             $(292,011)    $(247,690)   $(1,595,866)   $(865,654)

    NET LOSS PER
     SHARE FROM
     CONTINUING
     OPERATIONS:
      Basic                 $(0.11)       $(0.14)        $(0.62)      $(0.35)
      Diluted               $(0.11)       $(0.14)        $(0.62)      $(0.35)
    NET INCOME
     (LOSS) PER
     SHARE FROM
     DISCONTINUED
     OPERATIONS:
      Basic                 $(0.01)        $0.02         $(0.03)      $(0.08)
      Diluted               $(0.01)        $0.02         $(0.03)      $(0.08)
    NET LOSS PER SHARE:
      Basic                 $(0.12)       $(0.12)        $(0.65)      $(0.44)
      Diluted               $(0.12)       $(0.12)        $(0.65)      $(0.44)
    WEIGHTED AVERAGE
     COMMON AND
     COMMON EQUIVALENT
     SHARES OUTSTANDING
      Basic              2,528,751     1,990,990      2,450,880    1,989,601
      Diluted            2,528,751     1,990,990      2,450,880    1,989,601



                      STEN CORPORATION AND SUBSIDIARIES
                           CONDENSED BALANCE SHEETS

                                    ASSETS
                                                   June 29,      September 30,
                                                     2008            2007
                                                  (unaudited)     (audited)

    CURRENT ASSETS
      Cash, cash equivalents                        $286,167       $156,399
      Current portion of loans receivable          2,786,918      2,057,475
      Other current assets                         6,320,702      4,341,292
        Total Current Assets                       9,393,787      6,555,166

    PROPERTY AND EQUIPMENT, NET                    1,282,512      1,051,013

    OTHER ASSETS
      Intangible assets, net                       1,073,381      1,228,889
      Loan receivable, net of current portion      6,613,197      4,487,466
      Other assets                                 3,695,166      3,990,145
        Total Other Assets                        11,381,744      9,706,500

          TOTAL ASSETS                            $22,058,043    $17,312,679

                     LIABILITIES AND STOCKHOLDERS' EQUITY
    TOTAL CURRENT LIABILITIES
      Line of credit, bank                                $0        680,000
      Current portion of long term debt            5,093,881      2,886,265
      Other current liabilities                    2,991,048      2,791,762
        Total Current Liabilities                  8,084,929      6,358,027

    LONG-TERM LIABILITIES
      Dealer reserves                                 41,792      1,076,707
      Long-term debt, net of current portion       8,948,840      4,457,458

    TOTAL LIABILITIES                             17,075,561     11,892,192

    TOTAL STOCKHOLDERS' EQUITY                     4,982,482      5,420,487

    TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY   $22,058,043    $17,312,679

    NET BOOK VALUE PER SHARE                           $1.97          $2.72

SOURCE STEN Corporation