Nortech Systems Reports Third Quarter Results
Sales and Profits Rise in Quarter from Prior Year

MINNEAPOLIS – Nov. 13, 2013 – Nortech Systems Incorporated (NASDAQ: NSYS) today reported net sales of $27.4 million for the third quarter ended Sept. 30, 2013, a seven percent increase over the third quarter of 2012, when sales were $25.5 million. Operating income for the third quarter of 2013 was $376,000, a 14 percent increase over the third quarter of 2012.

The company’s net income for the third quarter of 2013 was $218,000, or $0.08 per diluted common share. This compares to $105,000, or $0.04 per diluted common share, for the third quarter of 2012.

For the nine months ended Sept. 30, 2013, Nortech Systems reported net sales of $81.8 million, compared with $81.9 million for the same period in 2012. Net income for the nine-month period ended Sept. 30, 2013, was $546,000, or $0.20 per diluted common share, compared with $354,000, or $0.13 per diluted common share, for the same period in 2012. Net income throughout 2013 was positively impacted by the reinstatement of the federal R&D tax credit.

“It’s gratifying to post a quarterly sales increase in an economy that continues to be challenging,” said Mike Degen, Nortech Systems’ CEO. “Our positive results so far during 2013 have met our expectations and demonstrate we’re executing on our business fundamentals.”

Degen added that the company’s profitability is being aided by the increased revenue in the quarter and a number of corporate initiatives focused on business development activities and lowering the overall cost of operations.

Conference Call
Nortech Systems announces a conference call to be held at 10:00 a.m. (CST) on Thurs., Nov. 14, to discuss the company’s third quarter results. Anyone interested in participating in the conference can access the call by dialing 877-407-8031 from within the United States, or 201-689-8031 if calling internationally. An audio webcast and replay of this conference call can be accessed at the investor relations portion of Nortech Systems’ website at ( or at ( A podcast (MP3 download) will also be available. The telephone replay will be available through Nov. 28, 2013, by dialing 877-660-6853 (from U.S.) or 201-612-7415 (International). To access the replay, the conference ID 10000745 is required.

About Nortech Systems Incorporated
Nortech Systems Incorporated (, based in Wayzata, Minn., is a full-service electronics manufacturing services (EMS) provider of wire and cable assemblies, printed circuit board assemblies and higher-level complete box build assemblies for a wide range of industries. Markets served include industrial equipment, aerospace/defense and medical. The company has manufacturing capabilities in the U.S and Latin America. Nortech Systems is traded on the NASDAQ Stock Market under the symbol NSYS.

Forward-Looking Statements
This press release contains forward-looking statements made pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. While this release is based on management’s best judgment and current expectations, actual results may differ and involve a number of risks and uncertainties. Important factors that could cause actual results to differ materially from the forward-looking statements include, without limitation: volatility in market conditions which may affect market supply of and demand for the company’s products; increased competition; changes in the reliability and efficiency of operating facilities or those of third parties; risks related to availability of labor; commodity and energy cost instability; general economic, financial and business conditions that could affect the company’s financial condition and results of operations; as well as risk factors listed from time to time in the company’s filings with the SEC.

Condensed Statements of Income

Three months ended Sept 30, Nine months ended Sept 30,
                     Unaudited                      Unaudited
        2013         2012         2013         2012

Net Sales

$27,389,275 $25,520,963 $81,765,375 $81,915,222

Income from Operations

      376,181       328,671       972,909      975,688

Other Expenses

     (71,264)     (166,506)     (262,683)     (429,792)

Income before
Income Taxes

     304,917       162,165       710,226        545,896

Income Tax Expense

      87,000        57,000       164,000        192,000

Net Income

    217,917      105,165       546,226        353,896

Net Income Per
Basic & Diluted
Common Share

     $0.08        $0.04         $0.20          $0.13

Weighted Avg Number
of Common Shares
Basic & Diluted

  2,742,992    2,742,992   2,742,992     2,742,992

Condensed Balance Sheets

Sept 30, 2013
December 31, 2012

Current Assets

$35,960,166 $32,691,371

Property and Other
Long-Term Assets

  11,250,380 11,823,528

Total Assets

$47,210,546 $44,514,899

Current Liabilities

$20,941,154 $20,131,441

Long-Term Debt

    4,577,990 3,248,227

Shareholders’ Equity

   21,691,402 21,135,231

Total Liabilities and
Shareholders’ Equity

 $47,210,546 $44,514,899

Richard Wasielewski
Nortech Systems Inc. (952) 345-2244
Warren Djerf
Brookside Communications Group
(952) 920-3908 /