SOURCE: DAC Technologies Group International, Inc.

November 14, 2006 08:45 ET

DAC Technologies Announces Quarterly Results for Period Ending September 30, 2006

LITTLE ROCK, AR -- (MARKET WIRE) -- November 14, 2006 --DAC Technologies (OTCBB: DAAT) today announced that net sales for the three months ending September 30, 2006 were $3,936,195 as compared to $3,193,129 for the same period in 2005. This is an increase of $743,066, or 23%. Net income for the three month period ending September 30, 2006 was $341,188 as compared to $280,737 for the same period in 2005. This is an increase of $60,451, or 22%. Earnings per share for the three month period was $0.06 per share versus $0.05 in 2005, an increase of 20%.

For the nine month period ending September 30, 2006, net sales were $9,416,561, as compared to $7,720,369 for the same period in 2005, an increase of $1,696,192, or 22%. Net income for the nine month period was $744,266 as compared to $633,829 for the same period in 2005. This is an increase of $110,437, or 17%. Earnings per share for the nine month period was $0.12 per share versus $0.10 in 2005. This is an increase of $0.02, or 20%.

David A. Collins, Chairman and CEO, stated, "The increase in net income of 22% in the third quarter of 2006 is considerably higher than the increases in the first and second quarters of this year. Net income increased 18% in the first quarter and 10% in the second quarter. This increase is in spite of the fact that the Company has experienced higher than normal interest expense due to rising interest rates and the need to carry larger inventories to support our increased sales. The Company also experienced higher than normal increases in shipping costs due to fuel surcharges."

Collins also stated, "The Company continues to expand its product line and develop new products in the sporting goods area, and areas outside sporting goods. The Company has developed a new aluminum camping table that will begin shipping in January 2007 to Wal-Mart. This one item will add additional revenues in excess of seven figures in 2007. Also, the Company will begin shipping to Wal-Mart a new hunting seat in the December-January timeframe. The Company is also finalizing items for the housewares market, such as can openers, and anticipates to begin shipping in January 2007."

    DAC TECHNOLOGIES GROUP INTERNATIONAL, INC.
    Condensed Statements of Operations (Consolidated)
    For The Three Months Ended September 30, 2006 and 2005


                                                     $ Increase  % Increase
                               2006         2005     (Decrease)  (Decrease)
                           -----------  -----------

Net sales                  $ 3,936,195  $ 3,193,129  $    743,066       23%
Cost of sales                2,539,587    2,033,405       506,182       25%
                           -----------  -----------  ------------
Gross profit                 1,396,608    1,159,724       236,884       20%
                           -----------  -----------  ------------

Operating expenses
  Selling                      293,594      218,735        74,859       34%
  Shipping and warehouse       211,031      154,693        56,338       36%
  General and
   administrative              270,015      263,169         6,846        3%
                           -----------  -----------  ------------
Total operating expenses       774,640      636,597       138,043       22%
                           -----------  -----------  ------------

Income from operations         621,968      523,127        98,841       19%

Other income (expense)
  Interest expense             (79,774)     (57,586)       22,188       39%
                           -----------  -----------  ------------

Income before income tax
 provision                     542,194      465,541        76,653       16%

Provision for income taxes     201,006      184,804        16,202        9%
                           -----------  -----------  ------------

Net income                 $   341,188  $   280,737  $     60,451       22%
                           ===========  ===========  ============

Basic and diluted earnings
 per share                 $      0.06  $      0.05  $       0.01       20%
                           ===========  ===========  ============

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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