Pacific Safety Products Inc.
TSX VENTURE : PSP

Pacific Safety Products Inc.

August 20, 2007 06:00 ET

Pacific Safety Products Inc. Announces Debt Reduction and Working Capital Strength

KELOWNA, BRITISH COLUMBIA--(Marketwire - Aug. 20, 2007) - Pacific Safety Products Inc. (TSX VENTURE:PSP) ("PSP" or "the Company") is pleased to announce it has made its penultimate debt repayment. As of July 2007, the Company has current debt of $400,000 and no remaining long term debt.

"In the current market environment with concern over debt and liquidity causing investment volatility, PSP has a healthy balance sheet with essentially no outstanding debt. Our working capital at July 2007 is over $5.6 million including $3 million in cash," said Valerie Dougans, PSP's CFO. "Action taken by Management over the last year has ensured that PSP has generated sufficient capital and resources to manage its affairs from its own finances."

The Company also announced it has recently received three orders from Canadian customers for Tactical Armour with an aggregate value of in excess of $1 million and options that could double the value over the next 24 months.

OVERVIEW OF THE BUSINESS

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. The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Forward-Looking Statements

This news release contains certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical fact, that address events or developments that the Company expects to occur, are forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Forward-looking statements in this document include statements regarding the intent, belief or current expectations of the Company with respect to the acquisition of Gator Hawk. There are no assurances that the Acquisition will be accretive to the Company or that the business acquired will be successfully integrated into PSP's current business.

Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in the forward-looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include: failure to successfully negotiate or subsequently close such transactions, inability to obtain required shareholder or regulatory approvals, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. Forward-looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made. The Company undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change.

These statements are based on a number of assumptions, including, among others, assumptions regarding general business and economic conditions, the timing of the receipt of shareholder, regulatory and governmental approvals for Pacific Safety's proposed transactions, and the ability of management to successfully consummate the proposed transactions. The foregoing list of assumptions is not exhaustive. Events or circumstances could cause results to differ materially.

Contact Information

  • Pacific Safety Products Inc.
    David Scott
    Chairman and Chief Executive Officer
    (250) 491-0911 or Toll Free: 1-888-PSP-ARMR (1-888-777-2767)
    (250) 491-0930 (FAX)
    Email: dscott@pacsafety.com
    Website: www.pacsafety.com