HAC Harbor Acquisition Corp.

Harbor Acquisition Corporation (AMEX: HAC, HAC.U, HAC.WS) (�Harbor�) and Elmet Technologies, Inc. (�Elmet�), announced the financial results for Elmet�s first quarter ended April 1, 2007. Elmet is a privately-held, fully-integrated manufacturer of custom designed and engineered advanced enabling materials (�AEM�) products that are manufactured primarily with molybdenum and tungsten. On October 17, 2006, Harbor and Elmet announced they signed a definitive agreement for Harbor to acquire Elmet. Following consummation of the acquisition, Elmet�s current management team, led by John S. Jensen, CEO, will continue to lead the organization and the combined company will change its name to Elmet Technologies Corporation. �Elmet showed continued strength in our sales and backlog of AEM products in the first quarter of 2007,� commented Mr. Jensen, CEO of Elmet. �We are continuing to invest in manufacturing improvements, new products and sales and marketing, directed at growing our AEM product line. This investment has manifested itself in increased AEM sales to new and existing customers in 2007.� Q1 2007 Results Sales for the first quarter of 2007 increased to $14.5 million from $14.4 million for the first quarter of 2006, primarily as a result of increased sales of AEM products, which were partially off-set by a reduction in sales of contract lighting products. Sales of AEM products increased to $9.9 million for the first quarter of 2007 from $8.7 million for the first quarter of 2006, an increase of approximately 15%, primarily due to continued growth in demand for products used in the medical, semi-conductor, electronics and furnace markets. Contract sales, consisting of sales of lighting products under a supply agreement, decreased to $2.6 million for the first quarter of 2007 from $3.7 million for the first quarter of 2006, a decrease of 30%, primarily due to weaker demand for these products. Sales of purchase products decreased to $2.0 million for the first quarter of 2007 from $2.1 million for the first quarter of 2006. Gross profit increased to approximately $5.0 million for the first quarter of 2007 from $4.8 million for the first quarter of 2006, as a result of a continued shift to higher margin AEM products. Gross margin increased to 34.3% for the first quarter of 2007 from 33.1% for the first quarter of 2006 as a result of improved product mix and manufacturing performance. Elmet�s selling, general and administrative expenses increased to $2.1 million for the first quarter of 2007 from approximately $1.3 million for the first quarter of 2006, primarily as a result of costs associated with the sale of Elmet to Harbor ($0.4 million), increased costs associated with the debugging and installation of an enterprise software system ($0.2 million), and increased sales and marketing costs ($0.1 million). Elmet believes costs associated with the debugging and installation of its enterprise software system will cease during the third quarter of 2007. Net income decreased to $1.2 million for the first quarter of 2007 from $1.6 million for the first quarter of 2006, primarily as a result of increase selling, general and administrative expenses. Backlog as of April 1, 2007 was $11.5 million. Backlog consists primarily of purchase orders received for products deliverable within 90 days. Backlog should not be relied upon as indicative of Elmet�s revenues for any future period. Earnings before interest, taxes, depreciation and amortization (�EBITDA�), which is a non-GAAP measure, for the first quarter of 2007 excluding non-recurring expenses related to the proposed transaction with Harbor, as well as expenses associated with the enterprise software system, increased to $4.3 million compared to $4.1 million for the first quarter of 2006. The increase in adjusted EBITDA was primarily attributable to a favorable mix shift to AEM products with higher margins and improved cost controls in Elmet�s manufacturing facility. The table below reconciles Elmet's adjusted EBITDA (as described in the preceding paragraph) to Elmet's net income (loss) from continuing operations for the quarters ended April 2, 2006 and April 1, 2007. (in thousands) � Quarter Ended April 2, 2006 Quarter Ended April 1, 2007 � Net income (loss) $ 1,583� $ 1,188� Interest expense 644� 753� Depreciation and amortization 616� 847� Provision for income taxes 1,212� 950� � Transaction related expenses and systems implementation costs(1) 0� 589� � � � Adjusted EBITDA $ 4,055� $ 4,327� 1. Includes (i)�professional service fees and expenses for the transactions described in Harbor proxy statement, and (ii)�implementation expenses paid to information technology consultants and temporary employees for installing and debugging Elmet�s enterprise software system. About Elmet Technologies, Inc. Originally founded in 1929, Elmet was founded in late 2003 and became an independent company in early 2004 when its current CEO Jack Jensen led the management buyout of Elmet from its former parent, Philips Electronics North America Corporation. Under Jensen and his management team, Elmet has enjoyed growth by providing innovative refractory metal solutions to OEMs serving such industries as data storage, semiconductor, medical, electronics and lighting. Elmet now employs approximately 240 personnel, including highly-skilled sales, design, engineering, and production professionals at its Lewiston, Maine headquarters. Elmet�s products are typically custom-engineered components used in products such as medical imaging devices, silicon wafer chip manufacturing equipment, and specialty commercial and residential lighting applications. About Harbor Acquisition Corporation Based in Boston, Harbor is a publicly traded, special purpose acquisition corporation (�SPAC�) formed to acquire a company in the industrial or consumer products sectors. The contemplated transaction is subject to shareholder approval, along with certain regulatory approvals including the filing of a proxy statement with the Securities and Exchange Commission. Upon completion of the transaction, Harbor intends to change its corporate name to Elmet Technologies Corporation. Forward Looking Statements This press release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the �Securities Act�), and Section 21E of the Securities Exchange Act of 1934, as amended (the �Exchange Act�). These forward-looking statements are based on current expectations and projections about future events and no party assumes an obligation to update any such forward-looking statements. These forward-looking statements are subject to known and unknown risks, uncertainties and assumptions about Harbor and Elmet that may cause actual results to be materially different from any future results expressed or implied by such forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as �may,� �should,� �could,� �would,� �expect,� �plan,� �anticipate,� �believe,� �estimate,� �continue,� or the negative of such terms or other similar expressions. Factors that might cause our future results to differ from those statements include, but are not limited to, the failure of Harbor�s stockholders to approve the acquisition and the transactions contemplated thereby; the number and percentage of Harbor�s stockholders voting against the acquisition and electing to exercise their redemption rights; changing interpretations of generally accepted accounting principles; costs associated with continued compliance with government regulations; legislation or regulatory environments, requirements or changes adversely affecting the businesses in which Elmet is engaged; the continued ability of Elmet to successfully execute its business plan involving the proper management of its human resources and assets; demand for the products and services that Elmet provides; continued availability of, and changes in pricing for, raw materials used by Elmet; general economic conditions; geopolitical events and regulatory changes; as well as other relevant risks detailed in Harbor�s filings with the Securities and Exchange Commission. Additional Information This communication is being made in respect of the proposed transaction involving Elmet, its stockholders and Harbor. In connection with the proposed transaction, Harbor will file with the Securities and Exchange Commission a definitive proxy statement on Schedule 14A for the stockholders of Harbor describing the proposed transaction. Harbor will be filing other documents with the SEC as well. BEFORE MAKING ANY VOTING OR INVESTMENT DECISIONS, INVESTORS ARE ADVISED TO READ, WHEN AVAILABLE, HARBOR�S DEFINITIVE PROXY STATEMENT IN CONNECTION WITH THE SOLICITATION OF PROXIES FOR THE SPECIAL MEETING BECAUSE THIS PROXY STATEMENT WILL CONTAIN IMPORTANT INFORMATION. The definitive proxy statement will be mailed to stockholders as of a record date to be established for voting on the proposed transaction. Stockholders will also be able to obtain a copy of the definitive proxy statement and other documents related to the transaction that are filed with the SEC, without charge, once available, at the SEC�s Internet site (http://www.sec.gov) or by directing a request to Harbor Acquisition Corporation at One Boston Place, Suite 3630, Boston , Massachusetts 02108. As a result of the review by the SEC of the proxy statement, Harbor may be required to make changes to its description of the acquired business or other financial or statistical information contained in the preliminary proxy statement previously filed by Harbor with the SEC. Harbor and its directors and officers and other members of management and employees may be deemed to be participants in the solicitation of proxies in respect of the proposed transaction with Elmet and its stockholders. Information regarding Harbor�s directors and executive officers is set forth in Harbor�s final prospectus dated April 27, 2006, and the definitive proxy statement relating to the proposed transaction with Elmet and its stockholders when it becomes available. Harbor�s final prospectus also contains a description of the security holdings of the Harbor officers and directors and of Ferris Baker Watts, the managing underwriter of Harbor�s initial public offering consummated on May 1, 2006, and their respective interests in the successful consummation of this business combination.