Pacific Safety Products Inc.

Pacific Safety Products Inc.

March 02, 2005 16:01 ET

Pacific Safety Products Inc. Receives $2.6 Million Increase in Canadian Military Fragmentation Protective Vest Contract Value


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: PACIFIC SAFETY PRODUCTS INC.

TSX VENTURE SYMBOL: PSP

MARCH 2, 2005 - 16:01 ET

Pacific Safety Products Inc. Receives $2.6 Million
Increase in Canadian Military Fragmentation Protective
Vest Contract Value

KELOWNA, BRITISH COLUMBIA--(CCNMatthews - March 2 2005) - Pacific Safety
Products Inc. (TSX VENTURE:PSP) ("PSP" or "the Company") announces it
has received an amendment increasing the value of the contract with the
Canadian Department of National Defence for Fragmentation Protective
Vests by $2.6 million.

The increase in the contract value was due to a request by DND to make
certain design modifications to the product in order to enhance its
overall performance. A change in the size matrix, increasing the amount
of larger vests required, also added to the total value of the contract.

"While this request for changes by the Crown has delayed our ability to
get this contract into production," comments Brad Field, CEO, "more
importantly it means that our Forces will get an improved product and
PSP has received a significant bump in the overall value of the
contract."

Production of the contract commenced in February of this year and is
expected to be completed in either the middle of fiscal 2007 or the
middle of fiscal 2008, depending on whether the Government exercises its
option quantities for the contract. The total value of the contract now
stands at between $23 million and $32 million and brings PSP's total
order book with options to just over $60 million.

"As in all major contracts of this sort, it is a logistical challenge to
work out the initial bugs and get them into full production," said
Field. "Everyone involved in the contract including the Government's
contract managers, PSP staff and suppliers have worked diligently to
ensure that our Canadian Forces get the best quality products possible
for keeping them safe while in harms way."

PSP was also awarded a $24 million contract, with the potential of
increasing to $28 million, in August of 2004 for Chemical Warfare
Coveralls. This contract is currently going through the final
pre-production processes such as first-article qualification and raw
material procurement and is scheduled to go into production in early
summer this year.

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. These products are
marketed under the labels Pacific Emergency Products®, PROTECTED by
PSP™, EXPLOSAFE®, and O2B.O.S.S.™. The Company's primary
customers include military agencies, law enforcement agencies, private
security companies, fire departments and emergency medical service
organizations.

The Company strives to provide quality protection solutions by
effectively integrating the latest technologies to serve these
customers' needs. Founded in 1984, PSP has grown to include more than
130 employees at three Canadian facilities in Kelowna, British Columbia;
Brampton, Ontario; and Arnprior, Ontario. These facilities are equipped
with complete design, production and research capabilities. The Kelowna
facility has one of the most advanced non-government operated ballistic
research labs in North America.

In light of the sensitive nature of its products and customers, PSP may
not disclose all information regarding end-users, government agencies or
countries purchasing its products. It continues to be PSP's corporate
policy to conduct business only with recognized domestic law
enforcement, military and government agencies and foreign agencies that
are approved by the Canadian Department of Foreign Affairs and
International Trade.

Pacific Safety Products Inc. 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, Alberta Securities Commission, the Ontario
Securities Commission and / or 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.

PSP™, PROTECTED BY PSP™, O2BOSS™ and ...we bring everyday
heroes home safely.™ are trademarks of Pacific Safety Products Inc.

Pacific Emergency Products® and EXPLOSAFE® are registered trademarks
of Pacific Safety Products Inc.

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Pacific Safety Products Inc.
    Brad Field
    Chief Executive Officer
    1-800-667-5487 or (250) 491-0911
    bfield@pacsafety.com
    or
    Pacific Safety Products Inc.
    Investor Relations
    1-800-667-5487 or (250) 491-0911
    ir@pacsafety.com
    www.pacsafety.com
    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of this release.