MINNEAPOLIS – Nov. 14, 2012 – Nortech Systems Incorporated (NASDAQ: NSYS) today reported net sales of $25.5 million for the third quarter ended Sept. 30, 2012, compared to net sales of $28.3 million for the third quarter of 2011. Operating income for the third quarter of 2012 was $329,000, compared to $420,000 for the third quarter of 2011.

For the third quarter of 2012, Nortech Systems reported net income of $105,000, or $0.04 per diluted common share. This compares to net income of $183,000, or $0.07 per diluted common share, for the third quarter of 2011.

Nortech Systems reported net sales of $81.9 million for the nine months ended Sept. 30, 2012, compared to $85.1 million for the same period in 2011.  Operating income for the first nine months of 2012 was $976,000, compared to $1,046,000 reported for the same period in 2011. Net income for the nine-month period was $354,000, or $0.13 per diluted common share. This compares to $411,000, or $0.15 per diluted common share, reported for the same period in 2011, before a non-operating gain related to the Winland acquisition. With the non-operating gain, Nortech reported net income of $955,000, or $0.35 per diluted common share, for that period.

“Our diverse customer base is a definite strength because each customer is experiencing the current economic situation differently,” said Mike Degen, president and CEO of Nortech Systems.  “Some appear to be gaining momentum, while others are still making inventory adjustments or delaying orders.

“We started the year sharing optimism with our customers about a second-half recovery that is unfortunately not materializing,” Degen noted. “This is particularly true for many industrial customers — our largest segment.

“Lower overall sales volume in the quarter impacted our plant utilization and profitability,” added Degen, explaining that cost reductions and cost-avoidance initiatives were implemented to better match demand.

Along with reaffirming Nortech Systems’ long-term objectives, Degen emphasized his company’s ongoing commitment to deliver the right combination of engineering, manufacturing and supply chain services while continuing to closely monitor all customers and markets.

Conference Call

Nortech Systems announces a conference call to be held at 10:00 a.m. (CDT) on Thursday, Nov. 15, 2012, 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 www.nortechsys.com or at www.investorcalendar.com. A podcast (MP3 download) will also be available. The telephone replay will be available through Nov. 29, 2012, by dialing 877-660-6853 (from U.S.) or 201-612-7415 (International). To access the replay, the conference ID 401613 is required.

About Nortech Systems, Incorporated

Nortech Systems Incorporated (www.nortechsys.com), 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 and operating partners in the U.S., Asia and Latin America. Nortech Systems Incorporated 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.

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Contact:  Richard Wasielewski
Nortech Systems Incorporated (952) 345-2244
Warren Djerf
Brookside Communications Group (952) 920-3908