SOURCE: DAC Technologies Group International, Inc.

March 16, 2007 08:30 ET

DAC Technologies Announces 2006 Sales Results

LITTLE ROCK, AR -- (MARKET WIRE) -- March 16, 2007 --DAC Technologies (OTCBB: DAAT) today announced net sales for the year ended December 31, 2006 of $15,476,881 as compared to $13,351,115 for 2005. This is an increase of $2,125,766, or 16%.

David A. Collins, Chairman and CEO, stated, "Overall, we are pleased with the increase in sales over 2005. However, due to a number of factors, we have experienced a decrease in our gross profit margins of about 5% for the year as compared to last year. During 2006, we experienced some significant price increases on some of our items, particularly some of the gun cleaning kits. These increases were due to increases in commodity prices for brass, metal, plastic, as well as wood. There has also been a devaluation of the US dollar versus the Chinese RMB of 4% in the past year. Since our Chinese manufacturers operate their business in RMB, they are now receiving 4% less when they convert the US dollars we pay into RMB. This has caused them to have to increase their prices to recover this loss. It has been difficult to raise our own prices in response to these increases. We are currently working with our manufacturers to develop ways to reduce our costs as best we can."

Collins also stated, "The effect of these reduced margins will have an impact on our profit levels, therefore we will not meet our earnings estimates. Although the Company is still very profitable, it appears that our earnings will fall below 2005 because of the decrease in gross margins."

Bob Goodwin, CFO, added, "Due to some issues with the new accounting software installed at the beginning of 2006, we did not become aware of the decrease in our margins until after year end. These issues have been corrected."

Collins further stated, "On a positive note, the Company continues to grow. We have shipped 3,200 Wal-Mart Stores our new camping table as a year-round item. We have also shipped them the new hunting Turkey seat for the spring Turkey hunting season. The Company will also be shipping a major, 1,200 store retailer, six new gun cleaning kits for their spring/summer module as the one item they carried last year did extremely well. These kits will be year-round items. The Company is also manufacturing a new fish fillet knife set in a blow mold case at the request of customers. This new item should be finished in approximately four to six weeks. The Company has also hired the premier sales rep group to represent the Company in the southeast part of the United States, and is reviewing the performance of our other sales reps."

About DAC:

DAC Technologies Group International, Inc. is an outsource manufacturer of high quality, reasonably priced security safes, gunlocks, gun cleaning kits and security products, as well as accessory items for the sporting goods market. DAC distributes its products through mass merchandisers such as Wal-Mart and Kmart, and sporting goods retailers and distributors such as Dick's, Big Five, Cabela's, Acusport, Jerry's, RSR and others. DAC also provides gunlocks to OEM gun manufacturers such as Glock, SigArms, Savage, Marlin and Taurus, as well as others. Also, DAC's products are distributed through catalog companies.

The Private Securities Reform Act of 1995 provides a "safe harbor" for forward-looking statements. Certain information included in this press release (as well as information included in written statements to be made) contain statements that are forward looking, such as those relating to consummation of the transaction, anticipated future revenue of the Company's and success of current public offerings. Such forward looking information involves important risks and uncertainties that could significantly affect anticipated results in the future and, accordingly, such results may differ materially from those expressed in any forward looking statements.

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