Pacific Safety Products Inc.
TSX VENTURE : PSP

Pacific Safety Products Inc.

January 16, 2006 16:47 ET

Pacific Safety Products Inc. Announces Price Reservation for Employee Share Ownership Plan Offering

KELOWNA, BRITISH COLUMBIA--(CCNMatthews - Jan. 16, 2006) - Pacific Safety Products Inc. ("PSP" or the "Company") (TSX VENTURE:PSP) announces the following update to its Employee Share Ownership Plan ("ESOP" or "the Plan").

In accordance with the Company's ESOP, the purchase price for the next offering period, being January 15, 2006 to January 31, 2006, has been set at the closing price of the shares on the TSX Venture Exchange effective today. The price is reserved at $0.43 per share and applies to shares purchased in full and to shares purchased through the payroll deduction plan during the offering period.

The Employee Share Ownership Plan has been in place since 2001. A total of 373,194 shares have been purchased by the employees for proceeds of $222,167 and 76,907 shares have been matched by the Company since the inception of the Plan.

A maximum of 300,000 shares can be subscribed for and issued as per the guidelines of the Plan. Shares are issued from Treasury with the proceeds, net of issue costs, being recorded as an increase to Shareholders' Equity and the value of the shares matched by the Company being recorded as a compensation expense. A copy of the plan is filed on SEDAR under the Company's public documents and can been accessed at www.sedar.com.

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. These products primarily include body armor to protect against ballistic, stab and fragmentation threats. PSP is the largest armor manufacturer in Canada and has significant international customers. 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.

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