Pacific Safety Products Inc.

Pacific Safety Products Inc.

December 17, 2007 06:00 ET

Pacific Safety Products Inc. Announces Contract Award

KELOWNA, BRITISH COLUMBIA--(Marketwire - Dec. 17, 2007) - Pacific Safety Products Inc. (TSX VENTURE:PSP) -

PSP has been awarded a contract amendment by Public Works and Government Services Canada for the supply of modular components for the Fragmentation Protective Vest to the Department of National Defence. The total value of this contract amendment is estimated at $5 million with approximately $3.8 million for delivery this fiscal year with options for another $1.2 million. The value of this and other unfilled orders on this contract now stands in excess of $8 million including options.

This award is part of a previously announced $20 million of new business for the company.

PSP is a major supplier of ballistic protection products used by the Canadian Forces and continues to evolve new products to enhance the safety of its end users. Additional Products are under development by PSP for multiple applications with this customer and others. The Company estimates that annual revenues from this product area to be in the range of $8 million to $12 million.

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 armor 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 armor manufacturer in Canada and supplies its products to the Canadian Department of Defence, Federal Government Agencies and major law enforcement organizations across the country. The Company, through its U.S. subsidiary Sentry Armor Systems Inc., provides body armor 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 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 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 which may be 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 stated. These factors include, but are not limited to changes in the laws, regulations, policies and economic conditions, including inflation, interest and foreign currency exchange rates, of countries in which the Company does business; competitive pressures; successful integration of structural changes, including restructuring plans, acquisitions, divestitures and alliances; cost of raw material, 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
    (250) 491-0911
    Pacific Safety Products Inc.
    Jacques Bonaventure
    VP Corporate Development
    (613) 623-6001 x. 226