PPI Announces Major New Order and New Appointment
Ceramic Protection Corporation (the “Corporation”), a leading manufacturer and distributor of advanced ballistic protection products, announced today that its wholly-owned subsidiary Protective Products International Corp. (“PPI”) of Sunrise, Florida has been awarded a competitive order for Modular Tactical Vests (MTVs) in the amount of approximately CAD $38 million by the U.S. military.
Mr. John Walsh, President of the Corporation, stated today that “This new order, coming so soon after our recent acquisition of PPI, highlights the soundness of the Corporation’s growth strategy and is a compliment to the hard work of the entire PPI team. This order constitutes a major step forward for the Corporation in both growing revenues and in offering a more diversified product mix to the US and international defense and security marketplace.”
Mr. Steve Giordanella, President of PPI, noted that: “This award constitutes an important step forward in developing a presence in the protective products marketplace, especially in the rapidly developing defense sector. The adoption of our products by the U.S. military indicates that we have attained world-class standards in manufacturing and product development at a time when there is an urgent need to protect U.S. military and security personnel. We are proud to be able to provide our products to this important and growing market.”
Mr. Walsh also commented that the order brings the Corporation’s current backlog to approximately CAD $63 million. Deliveries of the MTVs to the U.S. military are to begin in November 2006 and are to be completed by December 2007. He further noted that “This new order will provide a strong new base of revenues for the current year and throughout 2007 and indicates that PPI has both the manufacturing and the product development capability for solid potential future growth. The Corporation welcomes this exciting new development and we will be working hard to continue to develop this and other new protective product lines.”
Mr. Larry Moeller, Chairman, today announced that Mr. Steve Giordanella, President of PPI and a member of the Board of Directors of the Corporation (the “Board”), has been appointed as Chief Executive Officer of the Corporation. Mr. Moeller commented that “Mr. Giordanella has exhibited outstanding business and personal leadership qualities since the acquisition of PPI by the Corporation in May 2006 and his clear and continuing commitment to CPC is a major asset to the Corporation and its shareholders. On behalf of the Board, we are proud to acknowledge, through this appointment, Mr. Giordanella’s outstanding abilities which he brings to the Corporation. We look forward to his continuing contributions in planning and executing the Corporation’s future diversification and growth strategies.”
Business of the Corporation
Ceramic Protection Corporation, headquartered in Calgary, Alberta, Canada, with offices in Newark, Delaware and Sunrise, Florida, USA, is an ISO 9001:2000 certified manufacturer and distributor of advanced materials for use in the ballistic protection marketplace. The Corporation manufactures a wide range of products used to provide protection for personnel and vehicles, including a wide range of ceramic armour products, multiple composite-based products, and a full line of soft armour products. The Calgary plant manufactures alumina ceramic and fiberreinforced composites used for ballistic protection of personnel and vehicles. In conjunction with its wholly owned subsidiary, CPC America of Newark, Delaware, the Corporation also manufactures a wide range of boron carbide, silicon carbide, and polyethylene products for use in personnel armour systems. PPI of Sunrise, Florida, manufactures a wide range of soft armour products for the law enforcement and military markets.
Forward Looking Statements
This release may contain forward looking statements including expectations of future sales, cash flow and earnings. These statements are based on current expectations that involve a number of risks and uncertainties that could cause actual results to differ from those anticipated. These risks include, but are not limited to, uncertainties associated with the defense industry, commodity prices, exchange rate fluctuations and risks resulting from the potential delays or changes related to government orders in the defense sector. The Corporation depends on reliable supplies of high quality source materials used in the manufacturing of wear management and armour products, including aramid fabrics and polyethylene plates, and works actively with key suppliers to ensure that requirements and demands for these materials are anticipated and properly met.
The foregoing is not exhaustive and other risks are detailed from time to time in other disclosure filings of the Corporation. Should one or more of these risks or uncertainties materialize, or should stated assumptions underlying the forward looking statements prove incorrect, actual results may vary materially from those described herein as anticipated, believed, estimated or expected. The reader is also referred to other uncertainties and risks discussed in detail in the MD&A section of the Corporation’s December 31, 2005 Annual Report dated March 17, 2006, and also the Corporation’s Annual Information Form.
In light of certain sensitive aspects in regard to customers and products, the Corporation may choose not to disclose all information related to the purchasers of its products, such as government agencies, countries or other end-users. Export sales of armour products manufactured in Canada must first be approved by the Canadian Department of Foreign Affairs and International Trade. Other armour sales may be made to recognized domestic agencies such as the military and those involved in local, provincial or national law enforcement.