T.J.T., Inc. Reports Results for Second Quarter of Fiscal 2011

T.J.T., Inc. (the Company), (Pink Sheets:AXLE) –T.J.T., Inc., a major supplier of axles, tires, and set-up supplies to the manufactured housing industry announced a net loss of $296,000 for its second quarter of fiscal 2011.

Net sales decreased 14 percent in the three month period ending March 31, 2011 as compared to the same period a year ago. Net sales are down 21 percent for the six month period ending March 31, 2011 as compared to the same period in 2010. Net sales of axles and tires decreased 16 percent quarter over quarter, while sales of accessories decreased 7 percent. Net sales of axles and tires decreased 28 percent in the first six months of 2011 compared to 2010; net sales for accessories and siding decreased 2 percent in that same time period.

In 2010, the axle and tire segment included sales associated with utilizing the Company’s freight trucks to provide motor carrier services to outside customers. Sales associated with motor carrier services were $57,000 and $180,000 in the three and six month periods ended March 31, 2010, respectively. Motor carrier services were discontinued on February 15, 2010. Excluding sales associated with motor carrier services, net sales declined 10 percent and 16 percent in the three and six month periods of 2011, respectively, as compared to the same periods a year ago.

The Company’s gross margin increased more than 5 percentage points in the three and six month periods ended March 31, 2011 as compared to the same periods in 2010. The increased margin in the axle and tire segment for both periods is primarily due to inventory lower of cost or market adjustments incurred in the third and fourth quarters of fiscal 2010, coupled with reductions in direct expenses associated with discontinuing motor carrier services. Manufacturing expense declined as production levels have aligned more closely with market demand and finished goods inventory has been kept to a minimal level, improving gross margin in both the three and six month 2011 periods compared to 2010.

Gross margin for the accessories business segment increased to 37 percent in the second quarter of 2011 compared to 34 percent in the same quarter a year ago. Accessories gross margin in the second quarter increased as inventory that was written down in the third and fourth quarters of fiscal 2010 was sold at higher than expected prices. During the first half of fiscal 2011, the accessories gross margin declined slightly when compared to 2010.

Consolidated selling, general, and administrative (SG&A) expense decreased $126,000 and $212,000 during the three and six month periods, respectively, when compared to the same 2010 periods. SG&A declined primarily as a result of reductions in wages and other employee related expenses offset by increased bad debt expense. The Company incurred bad debt charges of $58,000 in 2011 as a result of Palm Harbor Homes filing for bankruptcy on November 29, 2010.

The Company’s net loss for the quarter ending March 31, 2011 was $296,000 compared to a net loss of $371,000 for the same quarter a year ago. The net loss for the six months ended March 31, 2011 was $582,000 compared to a net loss of $732,000 in the same six month period a year ago. Improvements to net loss in both periods is due to increases in gross profit while SG&A declined. The net loss in 2011 includes an impairment loss on real estate held for sale of $88,000, offset by $30,000 of income related to the Company selling its interest in Ladder Lift Systems, L.L.C. The Company did not record a tax benefit in either period because there are no carryback provisions available. A valuation allowance has been recorded in 2011 to reduce the carrying amounts of deferred tax assets at March 31, 2011 to zero.

Established in 1977, T.J.T., Inc. is a major provider of recycled axles and tires to the manufactured housing industry. It operates recycling facilities in Idaho, Washington, California, and Colorado, and serves 14 western states. In addition to the recycling business, T.J.T. also sells aftermarket products to manufactured housing and residential markets.

This release contains certain forward-looking statements, which are based on management’s current expectations including, but not limited to, general economic conditions, changes in interest rates, deposit flows, real estate values, competition, and changes in legislation or regulations, and other economic, competitive, governmental, regulatory, and technological factors affecting the company’s operations, pricing, products, and services. Any forward looking statement speaks only as of the date on which the statement is made, and the Company undertakes no obligation to update any forward looking statement.

Copies of this report and additional financial information can be found at www.pinksheets.com, or you may contact:

Jerome Light

President

T.J.T., Inc.

208-365-5321