Stanley (SXE)

Issuer Purchases of Equity Securities

(1) Represents shares of common stock repurchased by the Company to satisfy certain employees’ tax obligations upon the vesting of restricted stock on May 3, 2008.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Recent Sales of Unregistered Securities

The following information relates to all securities issued or sold by us within the three months ended September 30, 2006, and not registered under the Securities Act.  The transactions described below were conducted in reliance upon the exemptions from registration provided in Rule 701 promulgated under Section 3(b) of the Securities Act and/or Section 4(2) of the Securities Act and the rules and regulations promulgated thereunder.  There were no underwriters employed in connection with these transactions.  All information reflects the 30-for -1 stock split, which took effect on September 12, 2006.

During the quarter ended September 30, 2006, the Company issued to five members of the Company’s board of directors an aggregate of 21,600 shares of the Company’s common stock as compensation for their service on our board of directors. These shares were valued at the time of issuance at $10.28 per share, for an aggregate value of $222,048.

During the quarter ended September 30, 2006, one employee exercised options to purchase 3,900 shares of the Company’s common stock at an aggregate exercise price of $14,335.

Use of Proceeds

On October 23, 2006, we received the proceeds from our initial public offering of 6,234,720 shares of our common stock at a price of $13.00 per share. Our net proceeds from the initial public offering, after deducting the underwriting discount of $5.7 million and estimated offering expenses of $3.4 million, were $72.0 million. Selling shareholders offered and sold a total of 1,010,280 shares of our common stock in the initial public offering at a price of $13.00 per share. Net proceeds to the selling shareholders, after deducting the underwriting discount of $0.9 million, were $12.2 million. The lead managers for the initial public offering were Citigroup Global Markets Inc, (Citigroup) and Wachovia Capital Markets, LLC, with Citigroup acting as sole book-runner. Payments of expenses were to persons other than our directors or officers (or their associates), persons owning 10% or more of our common stock, or our affiliates. The offer and sale of all of the shares in the initial public offering were registered under the Securities Act pursuant to a registration statement on Form S-1 (File No. 333-134053), which was declared effective by the SEC on October 17, 2006.

The net offering proceeds to us were used in October 2006 to repay approximately $61.5 million of debt under our senior credit facility.

Purchases of Equity Securities

A summary of our repurchases (in thousands, except average price per share) during the quarter ended September 30, 2006 is as follows:

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