ENTORIAN TECHNOLGIES (GREY:ENTN)

Second quarter GAAP net income was $0.8 million, or $0.21 per diluted share, compared to a first quarter GAAP net loss of ($94,000), or ($0.02) per diluted share. Excluding non-cash charges for stock-based compensation of $0.2 million and amortization of acquisition intangibles totaling $0.8 million, non-GAAP net income for the second quarter was $1.8 million, or $0.47 per diluted share, compared to the non-GAAP net income of $1.0 million, or $0.25 per share, in the previous quarter. A reconciliation of GAAP results to non-GAAP results has been provided in the financial statement tables following the text of this press release.

Management Commentary and Business Outlook

“We are pleased with our performance in the second quarter of this year, in which we returned to profitability on a GAAP basis. This major accomplishment was the result of our team’s continued effort to grow our business while improving gross margins and reducing our overall expenses, and in particular, our general and administrative expenses. However, we remain cautious about the demand levels for the remainder of 2010 based on several factors, including the availability of federal and state budgets and the economy in general,” stated Stephan Godevais, Entorian’s president and CEO.