Pacific Safety Products Inc.
TSX VENTURE : PSP

Pacific Safety Products Inc.

June 26, 2009 08:38 ET

Pacific Safety Products Inc. Announces Staff Reductions

KANATA, ONTARIO--(Marketwire - June 26, 2009) - Pacific Safety Products Inc. (TSX VENTURE:PSP) ("PSP" or "the Company") today announced a reduction of 21 full time equivalent positions across its three locations; Arnprior Ontario, Halifax Nova Scotia and Dover Tennessee. These reductions include administrative, clerical, production support and manufacturing jobs. A further 10 manufacturing employees were placed on temporary lay-off and are expected to return to work within the next 30 days.

Chief Executive Officer, David Scott, commented; " The permanent positions eliminated are a result of a number of factors including; product mix, integration of support functions and automation of certain business processes. The temporary lay-off is to allow for product line change-over and new order timing."

Mr. Scott also commented; "Our current projection for fiscal year 2010, which begins 1 July, is for revenues to be at or near the same level as the current fiscal year, which is in the $34 to $36 million range. The improvements made in the organization over the last 12 months allow us to process the same amount of business with fewer resources. We continue to invest in new opportunities, both short and medium range, to bolster revenue in the longer term."

About PSP

The mission statement of Pacific Safety Products Inc. is ...we bring everyday heroes home safely™. PSP is an established industry leader in the production, distribution and sale of high-performance and high-quality safety products for the defence and security market. These products include body armour to protect against ballistic, stab and fragmentation threats, ballistic blankets to reduce blast effects, and protective products against chemical and biological hazards. PSP is the largest armour manufacturer in Canada, directly supplying the Canadian Department of Defence, Federal Government Agencies and major Canadian law enforcement organizations. The Company also provides specialized law enforcement and safety products through APS Distributors, a division of PSP that services law enforcement and public safety agencies across the country. The Company, through its U.S. subsidiary Sentry Armor Systems Inc., provides body armour products to U.S. based law enforcement and private security firms. The Company also produces tactical clothing and emergency medical kits. Pacific Safety Products is a reporting issuer in British Columbia, Alberta and Ontario, Canada and publicly trades under the symbol PSP on the TSX Venture Exchange.

Forward Looking Statements: This news release may contain forward looking statements based on management's expectations, estimates and projections. All statements that address expectations or projections about the future, including statements about the Company's strategy for growth, product development, market position, expected expenditures, results of cost reduction initiatives and financial results are forward looking statements. Some of the forward looking statements may be identified by words like "expects", "anticipates", "plans", "intends", "projects", "indicates", and similar expressions. These statements are not guarantees of future performance and involve a number of risks, uncertainties and assumptions. Many factors, including those discussed more fully elsewhere in this release and in documents filed with the British Columbia Securities Commission, the Alberta Securities Commission, the Ontario Securities Commission, the TSX Venture Exchange, as well as others, could cause results to differ materially from those anticipated. These factors include, but are not limited to the potential impact of the current economic downturn on the Company's business, the unpredictability of purchasing patterns by governmental agencies, the possibility of a deterioration in the Company's working capital position, the impact on the Company's liquidity if it were to go offside of the covenants in its debt facilities, the impact that changes in supplier payment terms or slow payment of accounts receivable could have on the Company's liquidity, the unavailability of or increase in price of external capital to finance the Company's research, development and growth initiatives, changes in the laws, regulations, policies and economic conditions, including inflation, interest and foreign currency exchange rates fluctuations of countries in which the Company does business; competitive pressures; successful integration of structural changes or downsizing initiatives, including restructuring plans, acquisitions, divestitures and alliances; cost of raw material, the uncertainty associated with the outcome of research and development of new products, including regulatory approval and market acceptance; and seasonality of sales in some products.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Pacific Safety Products Inc.
    David Scott
    Chief Executive Officer
    (613) 254-9488 ext. 322
    www.pacsafety.com