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NEWS RELEASE TRANSMITTED BY Marketwire FOR: Pacific Safety Products Inc.TSX VENTURE SYMBOL: PSP Pacific Safety Products Inc. Announces Sale of Building and Elimination of Long Term Debt JUN 28, 2007 - 15:24 ETKELOWNA, BRITISH COLUMBIA--(Marketwire - June 28, 2007) - Pacific Safety Products Inc. (TSX VENTURE:PSP) ("PSP" or "the Company") is pleased to announce it has sold its Kelowna, BC facility to a local company, McIntosh Properties, for $3 million. The transaction is an all cash deal and will close on or about July 6, 2007. The decision to sell the building was part of management's strategy to reduce long term debt and generate cash flow for future growth. David Scott, Chairman and CEO comments, "In October 2005 PSP had long term debt obligations in excess of $5 million and an operating line of credit that was committed close to the $2 million limit. Our management team made the elimination of these obligations a priority in its going forward business strategy. It is our belief that small cap companies encumbered with significant debt have very limited room for maneuverability or investment for growth. We wanted PSP to have the freedom to grow and invest in its future." "We are proud that the decisions taken 20 months ago have resulted with this latest announcement in the elimination of all long term debt. As of the close of this transaction we will have $0.8 million of short term debt, an unused operating line of $2 million and operating cash in excess of $2 million. This represents a $7.6 million turnaround in less than 8 quarters. In that same time period, we have doubled revenue and increased shareholder value as measured by an increase in market cap by 243%." OVERVIEW OF THE BUSINESS The mission statement of Pacific Safety Products Inc. is ...we bring everyday heroes home safelyTM. 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. 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. The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. FOR FURTHER INFORMATION PLEASE CONTACT: 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 |
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