MINNEAPOLIS, Jan. 12 /PRNewswire-FirstCall/ -- STEN Corporation (Nasdaq: STEN), a Minneapolis-based diversified business; today reported results for its year ended September 28, 2008. The Company reported a net loss for the year ended September 28, 2008, of $8,021,386 or $3.25 per diluted share compared to a net loss for the year ended September 30, 2007 of $2,205,714 or $1.11 per diluted share. For the year ended September 28, 2008, the Company had a loss from continuing operations of $5,435,061 or $2.71 per diluted share and a loss from discontinued operations of $1,344,325 or $0.54 per diluted share. This compares to a loss from continuing operations of $2,753,542 or $0.93 per diluted share and a loss from discontinued operations of $344,376 or $0.18 per diluted share for the year ended September 30, 2007. A significant portion of the loss relates to non-cash charges including recording an allowance against approximately $2.96 million in net deferred tax assets. Kenneth Brimmer, CEO noted, "As a small finance company dealing with sub-prime borrowers we were hurt particularly hard by the marketplace events of the last year including the historic crisis in the credit markets, the most significant general economic recession in more than 20 years, the historic low levels of investor confidence, and the ever-increasing costs associated with being a public company. The combined effects of all these factors contributed to the significant loss for the year."

The Company also reported that on January 12, 2009, the Company received a Staff Deficiency Letter regarding a deficiency in the composition of the Company's Audit Committee for the period from October 28, 2008 to December 12, 2008. Due to the resignation of Steven F. Sabes from the Board and Audit Committee on October 28, 2008, the Company became non-compliant with the audit committee requirement for continued listing on The Nasdaq Stock Market as set forth in Marketplace Rule 4350(d)(2) because the Company's Audit Committee was comprised of only two instead of three members. On December 12, 2008, the Company's Board of Directors appointed Gervaise Wilhelm, an independent director, to serve on the Audit Committee. As a result of this action, the Company's Audit Committee is now comprised of three members, all of whom are independent directors. Accordingly, as stated in the Staff Deficiency Letter, the Nasdaq staff has determined that the Company has regained compliance with the Marketplace Rule 4350(d)(2).

STEN Corporation and Subsidiaries, headquartered in Minnesota, is a diversified business, primarily focused on its financing business through STEN Financial Corporation.

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: 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
                                       (AUDITED)

                                                   09/28/2008   09/30/2007

    REVENUES
      Stencor sales                                $2,053,430   $1,444,822
      STEN Financial, auto loan interest
       and other                                    2,416,110    1,164,603
      STEN Financial, vehicle sales                11,402,061    1,167,212
    TOTAL REVENUES                                 15,871,601    3,776,637

    COST AND EXPENSES
      Costs of goods sold related to Stencor        2,079,164    1,903,240
      Loss on impairment of Stencor assets            650,000
      Expenses related to STEN Financial
       Cost of autos sold                           7,755,240    1,002,808
       Salaries and benefits                        1,307,904      727,352
       Occupancy and operation expenses               778,980      240,923
       Depreciation and amortization                  251,853      200,301
       Provision for credit losses                  3,435,116    1,160,936
       Interest expense, net                        3,297,357      626,728
       Loss on impaired of STEN Financial asset       571,667            -
     Selling, general and administrative            1,179,381      667,891

    TOTAL COST AND EXPENSES                        21,306,662    6,530,179

      Loss from Continuing Operations
       Before Income Taxes                         (5,435,061)  (2,753,542)

    Provision for (benefit from) income taxes       1,242,000     (892,204)

    NET LOSS FROM CONTINUING OPERATIONS            (6,677,061)  (1,861,338)

      Loss from Discontinued Operations Before
       Income Taxes                                (1,344,325)    (550,844)
    Benefit from income taxes                               0     (206,468)
      Loss from discontinued operations            (1,344,325)    (344,376)
    NET LOSS                                      $(8,021,386) $(2,205,714)

    NET LOSS PER SHARE FROM CONTINUING OPERATIONS:
      Basic                                            $(2.71)      $(0.93)
      Diluted                                          $(2.71)      $(0.93)
    NET LOSS PER SHARE FROM DISCONTINUED
     OPERATIONS:
      Basic                                            $(0.54)      $(0.18)
      Diluted                                          $(0.54)      $(0.18)
    NET LOSS PER SHARE:
      Basic                                            $(3.25)      $(1.11)
      Diluted                                          $(3.25)      $(1.11)
    WEIGHTED AVERAGE COMMON AND COMMON
     EQUIVALENT SHARES OUTSTANDING
      Basic                                         2,470,348    1,989,975
      Diluted                                       2,470,348    1,989,975




                         STEN CORPORATION AND SUBSIDIARIES
                        CONSOLIDATED CONDENSED BALANCE SHEETS
                                      (AUDITED)

                                       ASSETS

                                                      09/28/08     09/30/07     09/30/07
    CURRENT ASSETS
      Cash and cash equivalents                       $242,733     $156,399
      Current portion of notes and loans receivable  2,817,234    2,213,649
      Other current assets                           3,134,249    3,103,852
      Assets of discontinued operations                 80,074    1,928,575
        Total Current Assets                         6,274,290    7,402,475

    PROPERTY AND EQUIPMENT, NET                        824,141    1,051,012

    OTHER ASSETS
      Notes and loan receivable, net of
       Current portion                               8,813,057    5,695,849
      Other assets                                   2,313,649    3,163,343
        Total Other Assets                          11,126,706    8,859,192

    TOTAL ASSETS                                   $18,225,137  $17,312,679


                          LIABILITIES AND STOCKHOLDERS' EQUITY

    CURRENT LIABILITIES
      Current portion of long-term debt             $5,442,524   $2,886,265
      Other current liabilities                      1,791,706    1,845,010
      Liabilities of discontinued operations         1,344,407    1,626,752
       Total Current Liabilities                     8,578,637    6,358,027

    LONG-TERM LIABILITIES
      Dealer reserves                                   27,303    1,076,707
      Long-term debt, net of current portion        10,983,738    4,457,458
       Total Long-Term Liabilities                  11,011,041    5,534,165

         Total Liabilities                          19,589,678   11,892,192

    STOCKHOLDERS' EQUITY                            (1,364,541)   5,420,487

    TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY     $18,225,137  $17,312,679

SOURCE STEN Corporation