MPC 8-K MPC Corporation Reports Unaudited Second Quarter 2007 Financial Results

Exhibit 99.1

FOR IMMEDIATE RELEASE

For more information:

Ross Ely, MPC Corporation

Phone (208) 893-1560

Email investorrelations@mpccorp.com

MPC CORPORATION REPORTS UNAUDITED SECOND QUARTER 2007 FINANCIAL RESULTS

Nampa, ID, August 17, 2007— MPC Corporation (AMEX:MPZ) today announced unaudited financial results for the quarter ended June 30, 2007. Net revenue was $53.6 million, a decline of $14.9 million, or 21.8%, compared to the same period in 2006. The net loss was $25.3 million, or $1.91 per basic and diluted common share. These results compare with a net loss of $25.4 million, or $2.11 per basic and diluted common share, over the same period in 2006.

The decline in revenue for the quarter was primarily the result of lower sales to the company’s commercial, state/local government, and education customers partially offset by higher revenues from sales to federal government customers. The company’s orders in backlog increased to $39 million at June 30, 2007 from $28 million at December 31, 2006.

Gross margin percentage for the second quarter was 13.1%, compared to 12.4% during the second quarter of 2006. SG&A expense for the quarter was $8.8 million, compared to $10.2 million during the second quarter of 2006, while R& D expense was $0.5 million, compared to $1.0 million during the second quarter of 2006. The improvement in the gross margin percentage and reductions in SG&A and R&D expense for the second quarter of 2007 were primarily due to cost cutting efforts initiated in 2006.

The $25.3 million net loss includes the effect of a non-operating non-cash charge of

$20.5 million related to the increase in the fair value of derivative financial instruments carried as derivative liabilities. The financial instruments consist of convertible debentures and warrants to purchase common stock of the company. The fair values of the derivatives are determined in part by, and fluctuate with, the market value of the company’s common stock, which increased in market value during the second quarter of 2007. The convertible debentures and warrants were sold in private placement financings in 2006.

More information about the Company’s results will be available on the Company’s Form 10-Q quarterly report to be filed with the U.S. Securities and Exchange Commission later today.

About MPC Corporation:

MPC Corporation (AMEX: MPZ), through its subsidiary MPC Computers, provides enterprise IT hardware solutions to mid-sized businesses, government agencies and education organizations. MPC offers standards-based server and storage products, along with PC products and computer peripherals, all of which are backed by an industry-leading level of service and support. For more information, visit MPC online at www.mpccorp.com.

Cautionary Statement

Certain statements in this press release are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including the statement with respect to turning the Company’s business around. These statements involve a number of risks, uncertainties and other factors that could cause actual results, performance or achievements of MPC Corporation to be materially different from any future results, performance or achievements expressed or implied by these forward-looking statements. MPC Corporation continues to face significant liquidity challenges and there is no assurance that it will be able to continue as a going concern. Other factors, which could materially affect such forward-looking statements, can be found in MPC Corporation’s' filings with the Securities and Exchange Commission at www.sec.gov. Investors, potential investors and other readers are urged to consider these factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements made herein are only made as of the date of this press release and MPC Corporation undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.

MPC CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands except share data)

	June 30,			December 31,
	2007			2006
	(Unaudited)
ASSETS
Current Assets
Cash and cash equivalents	$	1,867		$	4,839
Restricted cash		4,036			4,585
Accounts receivable, net		21,655			45,643
Inventories, net		26,532			18,189
Prepaid maintenance and warranty costs		7,584			6,391
Other current assets		683			935
Total Current Assets		62,357			80,582
Non-Current Assets
Property and equipment, net		3,591			4,914
Goodwill		22,197			22,197
Acquired intangibles, net		9,203			10,108
Long-term portion of prepaid maintenance and warranty costs		1,311			844
Other assets		2,829			3,792
Total Non-Current Assets		39,131			41,855
TOTAL ASSETS	$	101,488		$	122,437
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Accounts payable	$	24,208		$	32,536
Accrued expenses		4,696			4,354
Accrued licenses and royalties		1,533			1,540
Current portion of accrued warranties		2,323			2,220
Current portion of deferred revenue		18,938			15,607
Notes payable and debt		31,025			34,834
Total Current Liabilities		82,723			91,091
Long Term Liabilities
Non-current portion of accrued warranties		1,978			2,127
Non-current portion of deferred revenue		21,567			22,979
Derivative warrant liability		11,768			6,129
Derivative financial instruments at estimated fair value		34,362			21,234
Total Long Term Liabilities		69,675			52,469
TOTAL LIABILITIES		152,398			143,560
COMMITMENTS AND CONTINGENCIES
Shareholders' Equity
Preferred Stock, no par value; 1,000,000 shares authorized; no shares issued and outstanding at 2007 and 2006		-			-
Common Stock, no par value, 100,000,000 shares authorized; 13,505,018 and 12,147,438 shares issued and outstanding at 2007 and 2006, respectively		62,169			61,454
Accumulated Deficit		(113,079	)		(82,577	)
Total Shareholders' Equity (Deficit)		(50,910	)		(21,123	)
TOTAL LIABILITIES AND EQUITY	$	101,488		$	122,437

MPC CORPORATION

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands except for share data)

	Three Months Ended						Six Months Ended
	June 30						June 30
	2007			2006			2007			2006
Revenue	$	53,613		$	68,529		$	110,365		$	134,993
Cost of revenue		46,591			60,065			96,772			118,438
Gross margin		7,022			8,464			13,593			16,555
Operating expenses
Research and development expense		542			985			1,039			2,135
Selling, general and administrative expense		8,855			10,189			18,768			21,098
Depreciation and amortization		1,153			2,020			2,304			4,040
Impairment of acquired intangibles		-			19,484			-			19,484
Total operating expenses		10,550			32,678			22,111			46,757
Operating loss		(3,528	)		(24,214	)		(8,518	)		(30,202	)
Other (income) expense
Interest expense, net		1,503			1,166			3,021			2,644
Gain on vendor settlements		(225	)		(843	)		(225	)		(843	)
Change in estimated fair value of derivative financial    instruments		20,559			909			19,313			909
Other income		(44	)		(85	)		(125	)		(49	)
Total other (income) expense, net		21,793			1,147			21,984			2,661
Net loss	$	(25,321	)	$	(25,361	)	$	(30,502	)	$	(32,863	)
Basic and diluted weighted average Common
Shares outstanding		13,260			12,041			12,979			11,696
Basic and diluted loss per Common Share	$	(1.91	)	$	(2.11	)	$	(2.35	)	$	(2.81	)

MPC CORPORATION

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

	Six Months Ended June 30,
		2007			2006
OPERATING ACTIVITIES
Net Loss	$	(30,502	)	$	(32,863	)
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation		1,399			1,510
Amortization of intangibles		905			2,530
Impairment of intangibles		-			19,484
Amortization of deferred loan costs		459			365
Change in estimated fair value of derivative financial instruments		19,313			909
Stock compensation expense from vesting of restricted stock units		170			36
Gain on vendor settlements		(225	)		(843	)
Valuation of warrant exchange		-			767
Loss on disposal of assets		-			43
Accrued interest included in notes payable		27			32
Provision for bad debt		71			(30	)
Changes in Assets and Liabilities
Accounts receivable		23,917			12,586
Inventory		(8,343	)		(1,049	)
Prepaid maintenance and warranties		(1,659	)		7,742
Other current assets		249			627
Other non-current assets		504			(432	)
Accounts payable and accrued expenses		(3,184	)		(7,316	)
Accrued licenses and royalties		(7	)		3,099
Accrued warranties		(46	)		(308	)
Deferred revenue		1,919			(5,604	)
Net Cash Provided by Operating Activities		4,967			1,285
INVESTING ACTIVITIES
Purchase of property and equipment		(76	)		(115	)
Proceeds from the sale of fixed assets		-			2
Net Cash Used by Investing Activities		(76	)		(113	)
FINANCING ACTIVITIES
Net activity on line of credit		(7,912	)		(11,640	)
Net proceeds from notes payable		-			4,835
Restricted cash related to letters of credit and financing facility		549			-
Payment of note payable		(500	)		(126	)
Payments on capital leases		-			(121	)
Net proceeds from the exercise of stock options		-			27
Proceeds from the exercise of warrants		-			3,104
Payment of stock issuance costs		-			(155	)
Net Cash Used by Financing Activities		(7,863	)		(4,076	)
Net cash decrease for period		(2,972	)		(2,904	)
Cash at beginning of period		4,839			3,897
Cash at end of period	$	1,867		$	993