Sierra Monitor Corporation (Sierra Monitor) has reported net sales of $13.75 million for the year-end 2008, up 6%, compared with the net sales of $13 million in the previous year-end. It has also reported a net income of $485,706, or $0.04 per share, for the year-end 2008, compared with the net income of $581,038, or $0.05 per share, in the previous year-end.

Financial Highlights:

Achieved fourth quarter sales of $3,314,741;

Increased fourth quarter income from operations by 96% to $236,138, compared to prior year;

Generated fourth quarter net income of $115,757, an increase of 138% compared to prior year;

Earned net income of $0.01 per share (basic and diluted) for the fourth quarter.

Business Highlights:

Received significant order for Open Path Hydrogen Sulfide detection systems for use in a petrochemical facility in Colombia;

Qualified and received first order for FieldServer in a unique application allowing intelligent office environments to interface with building automation systems;

Supplied gas detection systems to the City of Los Angeles for use in a maintenance facility for trash and sweeper vehicles;

Completed delivery of eight gas detection systems for use on board the newly commissioned USS George H. W. Bush, a Nimitz-class aircraft carrier;

Qualified a custom ProtoCessor for a major supplier of roof-top air conditioning controllers.

Fourth Quarter and Twelve Months 2008 Financial Results:

Total sales for the quarter ended December 31, 2008 were $3,314,741, compared to the $3,355,625 reported for the same period of 2007.

Sierra Monitor posted GAAP net income of $115,757, or $0.01 per share (basic and diluted), for the quarter ended December 31, 2008, compared to GAAP net income of $48,621, or $0.00 per share (basic and diluted), for the same period of 2007.

Sierra Monitor posted non-GAAP net income of $262,973, or $0.02 per share (basic and diluted), for the fourth quarter ended December 31, 2008, compared to non-GAAP net income of $171,739, $0.02 per share (basic) and $0.01 (diluted), for the same period of 2007. Sierra Monitor posted non-GAAP net income of $929,171, or $0.08 per share (basic and diluted), for the twelve months ended December 31, 2008, compared to non- GAAP net income of $918,960, or $0.08 per share (basic and diluted), for the same period of 2007.

“Our employees continue to perform at high levels allowing us to achieve profitability despite the current challenging business environment,” said Gordon Arnold, president and chief executive officer. “We expanded the gas detection sales team by opening a Dubai office in October, and we expanded the FieldServer sales team by opening a Midwest sales office in December. Our cautious expense management resulted in lower engineering and sales expenses partially offset by an increase in general and administrative expenses as we continue to meet our compliance reporting obligations. With a strong balance sheet and no debt, our fundamental business structure remains sound,” he said.

Cash Position:

Sierra Monitor had $1,338,647 in cash at December 31, 2008 and no debt. Trade receivables at December 31, 2008 were $1,661,846. The company’s Days Sales

Outstanding in Accounts Receivable (DSOs) was 44 days.

Sierra Monitor is a US based cleantech focused company that delivers information technology for environment measurement and control.