Sequoia Voting Systems Awards Jaco Electronics Multi-Million Dollar, Follow-on Electronic Flat Panel Display (FPD) Voting Machine Manufacturing Order.

HAUPPAUGE, N.Y. & OAKLAND, Calif. -- Jaco Electronics, Inc. (Nasdaq: JACO), a distributor and integrator of electronic components and flat panel solutions, today announced that Sequoia Voting Systems (www.sequoiavote.com), a unit of Smartmatic, has awarded Jaco a new, multi-million dollar order to manufacture flat panel display (FPD) voting machines. The new contract calls for Jaco to manufacture 5,000 EDGE 2, 15-inch flat panel touch-screen voting machines.

The new order follows Sequoia Voting Systems' September 2005 voting machine order for 3,000 units from Jaco. In total, Jaco has received orders to manufacture approximately 11,500 voting machines for Sequoia since last September.

Jaco Chairman and Chief Executive Officer Joel Girsky, commented, "This new order from Sequoia highlights the growing awareness among voting jurisdictions and the public of the benefits and integrity of FPD, touch-screen voting machines and represents Jaco's largest voting machine purchase order to date. Sequoia has designed an excellent, user-friendly voting station that facilitates the entire voting process and we are proud that Sequoia has again selected Jaco as their voting machine partner. With our display solutions group's in-house engineering and integration center we have the capacity to deliver leading-edge FPD solutions to a broad range of customers and for myriad applications."

Many jurisdictions and municipalities are in the process of replacing outdated technology with new systems that comply with the Help America Vote Act by providing voters with notification of errors, an opportunity to correct their ballot before it is cast and accessibility features to ensure that voters with disabilities can cast their ballot privately and independently. The machines are also equipped with voter verifiable paper records, pioneered by Sequoia and successfully utilized in the 2004 primary and general elections.

About Sequoia Voting Systems

Sequoia Voting Systems has provided election services and support to state and local government for more than 100 years - dating back to the nation's first lever-based mechanical voting equipment in the 1890s. Sequoia products and services include election management software, voter registration database management systems, precinct-based optical scan ballot readers, high-speed central count optical scan ballot readers, electronic voting technology and ballot layout and printing services. In 2005, Sequoia combined with Smartmatic Corporation of Boca Raton, Florida, to create the largest international provider of voter-verifiable electronic voting technology.

About Jaco Electronics

Jaco is a leading distributor of electronic components to industrial OEMs and contract manufacturers. Jaco distributes products such as semiconductors, capacitors, resistors, electromechanical devices, flat panel displays (FPD) and power supplies, which are used in the manufacture and assembly of electronic products, including: telecommunications equipment, computers and office equipment, medical devices and instrumentation, industrial equipment and controls, military/aerospace systems and automotive and consumer electronics.

Jaco has two distribution centers and 16 strategically located sales offices throughout the United States, and one in Beijing, China. The Company operates an in-house FPD integration center housing its engineering and manufacturing staff and operations. The integration center enhances Jaco's ability to provide customers with unique value-added display solutions and a "one-stop" source for their FPD supply and integration requirements. In addition to customized FPD solutions, Jaco provides a variety of value-added services including automated inventory management services and assembling stock items for customers into pre-packaged kits.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: This press release provides historical information and includes forward-looking statements that are subject to numerous assumptions, risks and uncertainties, including, but not limited to, our dependence on a limited number of distributors for our products, that most of our distributor agreements are cancelable upon short notice, the impact of downturns in our industry and the general economy, the market for our products is very competitive, the impact of disruptions in air or sea transportation and possible future legislative or regulatory changes on our business, volatility in electronic components' pricing may reduce our profit margins, the level of costs or difficulties incurred in connection with integrating the operations of businesses we acquire, the financial strength of our customers and suppliers, and other risks disclosed from time to time in our Securities and Exchange Commission filings. The forward-looking statements in this press release involve assumptions, risks and uncertainties that could cause our actual results or performance, including margins, SG&A expenses as a percentage of revenues and earnings per diluted share, to differ materially from those expressed in the forward-looking statements. We believe that all forward-looking statements made by us have a reasonable basis, but we cannot assure you that management's expectations, beliefs or projections as expressed in the forward-looking statements will actually occur or prove to be correct. As a result, our actual results may differ materially from the information set forth herein.