Pacific Safety Products Inc.

Pacific Safety Products Inc.

June 12, 2008 06:00 ET

PSP Announces Corporate Update

KANATA, ONTARIO--(Marketwire - June 12, 2008) - Pacific Safety Products Inc. (TSX VENTURE:PSP), a leader in the field of protective body armour and soldier systems equipment announces, as part of its Investor Communications plan, an update on its business initiatives.

New Defence initiatives:

PSP continues to invest in strengthening its position in the developing market for the dismounted soldier programs in the USA, Canada and other selected international markets. The Company believes the integration of protective products with situational awareness is key to future growth in this market. Recent developments in this area include:

U.S. Army Opportunities

- The Company has been requested to provide pre-production units of its revolutionary helmet liner product to the U.S. Army for user trials scheduled for later this year. This is an early reinforcement of PSP's strategy to focus on U.S. military program opportunities.

- PSP has been invited to participate in wear trials of two body armor products for the U.S. Army. These trials will occur this summer. A decision on follow on procurement strategy and fielding will follow before the end of this year.

Canadian Department of Defence Opportunities

- PSP has identified both short and mid term opportunities for its current suite of protective products as well as longer term new programs. The Company estimates potential sales of $10 to $15 million within the next six to nine months for existing designs with advance orders possibly as early as its Quarter One of Fiscal 2009.

U.S. Law Enforcement Market Growth:

PSP through its US subsidiary Sentry Armor Systems Inc. is making steady progress in growing its law enforcement body armour business. Sentry has more than a 50% increase in its revenue from Fiscal 2007 to Fiscal 2008 and the Company expects growth in that range to continue into the future. Through the acquisition of Gator Hawk Armor (GH Armor) the Company has also accessed an international market for its products. Recent developments in this business area include:

U.S. Law Enforcement

- Sales for GH Armor and other PSP products manufactured in the USA continue to strengthen. May was the best month ever for new orders for the U.S. subsidiary with over $1 million of bookings.

International Orders

- Increased sales activity in our international markets for soft body armour with orders from Japan, Spain, Mexico and the United Arab Emirates. These are estimated to generate $2 million of revenue in the next 12 months.

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, directly supplying the Canadian Department of Defence, Federal Government Agencies and major Canadian law enforcement organizations. The Company also provides specialized law enforcement and safety products through APS Distributors, a wholly-owned subsidiary that services law enforcement and public safety agencies 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.
    Mr. Jacques Bonaventure
    Vice President Corporate Development
    (613) 623-6001 ext. 226