SOURCE: DAC Technologies Group International, Inc.

August 14, 2007 08:45 ET

DAC Technologies Announces Second Quarter Earnings and July Sales

LITTLE ROCK, AR--(Marketwire - August 14, 2007) - DAC Technologies (OTCBB: DAAT) today announced net income of $115,620 for the quarter ending June 30, 2007, as compared to net income of $92,316 for the same period in 2006, an increase of 25%. The Company's gross profit was $886,391 for the quarter ending June 30, 2007 as compared to $785,115 for the same period in 2006. This is an increase of $101,276, or 13%. Sales for the second quarter of 2007 were $2,739,903 versus $2,717,169 for the same period in 2006. The Company increased its gross margins in the second quarter from 29% in 2006 to 32% in 2007. Income from operations for the second quarter of 2007 was $266,441 as compared to $202,730 for the second quarter in 2006. This is an increase of $63,711, or 31%. Income before taxes also increased, from $151,594 in 2006, to $203,235 in 2007. This is an increase of $51,641, or 34%.

The Company also announced net sales for the month of July 2007 of $1,003,304 versus $933,269 for July 2006. This is an increase of $70,035, or 8%.

In agreement with our accounting firm, the Company has filed today amended quarterly reports for the periods ended June 30, 2006 and September 30, 2006. These reports reflect the actual results of operations as they occurred for these periods, including the price increases incurred during these periods. No adjustment to the Company's annual financial statements for the year ended December 31, 2006 are required, as the adjustments have already been accounted for in those statements. The first quarter of 2006 has not been restated, as the effect to this quarter was immaterial.

David A. Collins, Chairman and CEO, stated, "The Company has worked very hard to control expenses and increase gross margins upon learning of our decrease in gross margins in early 2007. Price increases announced in June of 2007 and tightly controlling expenses looks like it is beginning to pay off. The Company will continue with this effort and aggressively seek new business in all areas where it can use its extensive overseas manufacturing knowledge."

                DAC TECHNOLOGIES GROUP INTERNATIONAL, INC.
            Condensed Statements of Operations (Consolidated)
            For The Three Months Ended June 30, 2007 and 2006
                                Unaudited


                                                      2007         2006
                                                  -----------  -----------

Net sales                                         $ 2,739,903  $ 2,717,169
Cost of sales                                       1,853,512    1,932,054
                                                  -----------  -----------
Gross profit                                          886,391      785,115

Total operating expenses                              619,950      582,385
                                                  -----------  -----------

Income from operations                                266,441      202,730
                                                  -----------  -----------

Interest expense                                      (63,206)     (51,136)

Income before income tax provision                    203,235      151,594
                                                  -----------  -----------

Provision for income taxes                             87,615       59,278
                                                  -----------  -----------

Net income                                        $   115,620  $    92,316
                                                  ===========  ===========

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 Cabela's, Acusport, Jerry's, RSR, Maurice, Academy Sports, Sports Authority and others. DAC also provides gunlocks to OEM gun manufacturers such as Glock, SigArms, Savage, Marlin, Weatherby, as well as others. Also, DAC's products are distributed through catalog companies.

For Shareholder Information please call 1-800-920-0098 or email at investorrelations@dactec.com.

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) contains 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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