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NEWS RELEASE TRANSMITTED BY Marketwire FOR: Pacific Safety Products Inc.TSX VENTURE SYMBOL: PSP Pacific Safety Products Inc. Announces Improved Third Quarter Results MAY 27, 2008 - 06:00 ETKELOWNA, BRITISH COLUMBIA--(Marketwire - May 27, 2008) - Pacific Safety Products Inc. (TSX VENTURE:PSP) ("PSP" or "the Company") today announced financial results for its third quarter of fiscal 2008. For the quarter ending March 31, 2008, the Company reported, on a consolidated basis, net income after taxes of $0.3 million on sales of $10.6 million. This is a significant improvement over prior quarter sales of $7.3 million and a net loss of $1.4 million. Quarter Highlights: - Secured a new two year contract with a large government agency for the supply of armour products. The estimated value of the contract is between $14 and $16 million. - US Law Enforcement sales increased more than 25% for the three month period ending March 31, 2008 compared to the three month period ending December 31, 2008. - Almost a threefold increase in Canadian defence sales for the three month period ending March 31, 2008 compared to the three month period ending December 31, 2008. - Launched technologically advanced products aimed at the security and defence sector. Mr. David Scott, CEO, commented, "The significant improvement in quarter three results reinforces my belief that we have the right strategy and the right people to pursue continued expansion in both the United States and Canada in the coming years. Our investments in our US operations and APS Distributors Ltd. in Canada are continuing to gain traction and now account for almost 40% of total sales. We look forward to these acquisitions driving increased sales growth over the coming years." "Also our newly formed Defence Group shows considerable promise with the launch of a revolutionary new combat helmet liner to protect soldiers from the brain damaging effects of blast and impact shocks to the head. This and other initiatives are expected to further enhance our capability to compete and win new business in the defence and security sector," added Mr. Scott. Mr. Scott also commented, "With respect to guidance for Fiscal 2008, the Company expects to improve on its previous guidance of a net loss after tax of $0.5 million and cut its losses by half to show a net loss after tax of $0.25 million. Sales for the year will be between $34 million and $35 million as a result of rescheduling some current backlog of Defence products from Quarter 4, Fiscal 2008 into Quarter 1, Fiscal 2009 to accommodate new product line start up." For complete consolidated financial statements with notes and management discussion and analysis please refer to PSP's annual report to shareholders. This report is posted on SEDAR (www.sedar.com) and on our web site or one can be requested by contacting PSP using the methods listed at the end of this release. Summary interim consolidated financial results for the quarter ended March 31, 2008 and March 31, 2007, are as follows:
About PSP 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 armour 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 armour 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 armour 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. FOR FURTHER INFORMATION PLEASE CONTACT: Pacific Safety Products Inc. David Scott Chief Executive Officer (613) 623-6001 or Toll Free: 1-888-PSP-ARMR (1-888-777-2767) (613) 623-6169 (FAX) Email: dscott@pacsafety.com Website: www.pacsafety.com |
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