OLATHE, Kan., Dec. 17 /PRNewswire-FirstCall/ -- Butler National Corporation (OTC Bulletin Board: BUKS), a leading manufacturer and provider of support systems for "Classic" commercial and military aircraft, announces its financial results for the second quarter fiscal 2008 for the period ended October 31, 2007 . In conjunction with the release, the Company has scheduled a conference call Tuesday, December 18, 2007 at 9:00 AM Central Standard Time .

What: Butler National Corporation Second Quarter Fiscal 2008 Financial Results Conference Call When: Tuesday, December 18, 2007 - 9:00 AM Central Standard Time How: Live via phone by dialing 800-624-7038. Code: Butler National Corporation. Participants to the conference call should call in at least 5 minutes prior to the start time.

Clark Stewart , President & CEO, Butler National Corp., will be leading the call and discussing results of the second quarter, the status of new and existing orders, gaming activities and an outlook on the balance of fiscal 2008.

Historical selected financial data related to all operations: Quarter Ended October 31 Six Months Ended October 31 (In thousands except per (In thousands except per share data) share data) 2007 2006 2005 2007 2006 2005 Net Sales $4,234 $4,355 $5,053 $8,941 $7,431 $9,165 Operating Income 335 433 240 745 596 549 Net Income 187 266 107 419 310 313 Total Assets 20,856 18,489 18,979 20,856 18,489 18,979 Long-term Obligations 2,528 1,699 1,885 2,528 1,699 1,885 Shareholders' Equity 11,067 10,139 9,632 11,067 10,139 9,632 New Product Research and Development Cost 801 535 378 1,373 1,034 799 nr = not report

Management Comments:

"Our sales for the fiscal quarter-ended October 31, 2007 , decreased 2.8% to $4.2 million as compared to $4.4 million for the same period in fiscal 2007. Net income decreased 30% to $187,000 as compared to $266,000 for the same period in fiscal 2007. We continue our efforts to improve the profitability in the delivery of high-value "Classic Aviation" products.

We expensed $801,000, 19% of our sales, on product development. We feel this expenditure for the design and development engineering, testing, and certification of new products may stabilize our long-term revenues and enhance our profits.

As of October 31, 2007 , we had a commitment to purchase property in Dodge City, Kansas for approximately $1,700,000. We closed on this property November 15, 2007 . Total borrowings for this acquisition are $1,376,000. We capitalized a total of $255,000 for development in support of our Kansas-owned gaming proposal during the six months ending October 31, 2007 . In addition, we expensed approximately $418,000 related to the proposed gaming development activities in Kansas. We believe this will position Butler for a gaming management agreement that may be awarded by the state of Kansas during the next calendar year.

Sales from Aircraft Modifications including modified aircraft increased $401,000 (19.1%) from $2.1 million in the second quarter of fiscal year 2007 to $2.5 million in the current three months of fiscal 2008. Revenues from non-RVSM modification services increased $284,000 in the second quarter of fiscal 2008. RVSM revenues increased by 18% in the second quarter of fiscal 2008, compared to the second quarter of fiscal 2007. The modifications segment had an operating profit of $166,000 for the three months ended October 31, 2007 compared to operating profit of $95,000 for the three months ended October 31, 2006 .