SOURCE: DAC Technologies Group International, Inc.

August 15, 2008 08:30 ET

DAC Technologies Announces Six Months Results and July Sales

LITTLE ROCK, AR--(Marketwire - August 15, 2008) - DAC Technologies (OTCBB: DAAT) today announced results for the quarter ended June 30, 2008. For the six months ended June 30, 2008, the Company reported net sales of $5,440,027 as compared to $5,579,528 for the same period in 2007, a decrease of 2%. Net sales for the three month period ending June 30, 2008 were $2,724,258 versus $2,739,903 for 2007. Gross sales for July 2008 were $1,213,339 versus $1,026,067 in July 2007, an increase of 18%. Net income for the six months ending June 30, 2008 was $50,064 as compared to $98,418 for the same period in 2007.

David A. Collins, Chairman and CEO, stated, "The Company's gross margin in the second quarter was affected by the tremendous increase in commodity prices, increases in container shipping prices from China, and the devaluation of the US dollar versus the Chinese RMB. This trend now seems to be reversing itself as commodity prices have dropped from their highs in May/June by an average of 20%. The US dollar is showing strength and stabilizing against the Chinese currency. The price of oil has dropped significantly and we are hopeful that shipping expenses will stabilize or be reduced."

Collins also stated, "Sales for the first six months came in about where we expected. We were disappointed in the decrease in gross margins in the second quarter, but that situation seems to be, at a minimum, stabilizing. The Company continues to be successful at introducing new products as evidenced by its new fireplace accessory line that will begin shipping to Wal-Mart in the third quarter, and by the addition of household cleaning items. Although these items do not have the gross margins of our gun cleaning items, they offer an opportunity for tremendous growth at reasonable and profitable gross margins."

Collins further stated, "The Company still projects sales in the third and fourth quarters combined to be between $11,000,000 and $13,000,000, a big contributing factor being the shipment of our fireplace accessories. The Company has also received a commitment of almost $1,000,000 on a Holiday promotion with Wal-Mart. We expect annual sales for 2008 of between $16,000,000 and $18,000,000, and net profits between eleven and thirteen cents per share. The Company continues to tightly control expenses and improve its strong financial condition, as evidenced by current assets of $5.62 million and current liabilities of only $1.55 million, a current ration of 3.6 to 1, and shareholder equity of $4,757,145. The Company will continue to develop new products, and in fact, has been asked to work on a significant amount of new household cleaning items for 2008."

About DAC:

DAC Technologies Group International, Inc. is an outsource manufacturer of high quality, reasonably priced security safes, gunlocks, gun cleaning kits, sporting goods, household cleaning products and various hardware items. 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.

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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