Pacific Safety Products Inc.
TSX VENTURE : PSP

Pacific Safety Products Inc.

August 09, 2006 06:00 ET

Pacific Safety Products Inc. Preliminary Year End Results

KELOWNA, BRITISH COLUMBIA--(CCNMatthews - Aug. 9, 2006) - Pacific Safety Products Inc. (TSX VENTURE:PSP) ("PSP" or "the Company") -

Pacific Safety Products today announced its preliminary financial results for fiscal year 2006. These results are subject to completion of audit, expected within the next 30 days.

For the year ended June 30, 2006, the Company reported revenue of $32.2 million, EBITDA of $2.6 million and Net Income before taxes of $1.073 million.

"Management is extremely pleased with these results, particularly having addressed a serious shortfall in the first quarter and a restructuring cost of approximately three quarters of a million dollars," said David Scott, CEO.

"Accomplishments for FY2006 include:

- Realizing the expected gross margins on our major contracts

- Generating healthy growth in our core business lines.

- Launching Sentry Armor Systems in the United States

- Introducing the Sigma 6 Armour line

- Partnering with i-systems to market an integrated clothing solution

- Improving the balance sheet through cash generation and reduction of debt obligations."

"Going forward we expect to see continued growth and profitability for the company," continues Scott. "In a few days we will issue our fiscal year 2007 outlook which will share our views on market conditions and expectations for the Company."

OVERVIEW OF THE BUSINESS

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. 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.

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.

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