March 22, 2004
Pacific Safety Products Inc. Wins $20 Million Military Contract for Body Armor
For Immediate Release
KELOWNA, BRITISH COLUMBIA - Pacific Safety Products Inc. - (PSP: TSX Venture Exchange) - ("PSP" or "the Company") is pleased to announce the award of a $20.1 contract for the provision of a Fragmentation Protective Vest to the Canadian Department of National Defence.
The initial contract is for 35,000 fragmentation vests and vest components which will be manufactured at PSP's production facilities over a two-year period. Following completion of the initial contract the Government has the option to purchase up to 15,000 additional vests which would increase the total contract amount to more than $27 million.
"PSP has worked closely with DND's Clothe the Soldier Project for almost ten years on various aspects, including product design and development," says Roger Soar, Director of Military and Government Sales. "We are pleased to work with DND again on this significant manufacturing contract for fragmentation protective vests and look forward to continuing our relationship."
The Fragmentation Protective Vest is the Canadian Army's next generation of soft body armour and incorporates the latest state-of-the-art technology. The vest is one component of the omnibus Clothe the Soldier project and provides individuals with fragmentation protection against grenades, mortar bombs and artillery. The vest incorporates the use of lightweight and flexible aramid fibers to provide more protection and comfort for the Canadian soldier.
"The award of this project is a major milestone for PSP," says, Brad Field, President and CEO. "With this contract comes two or more years of steady revenues which will contribute significantly to PSP's cash flow and profitability. This is also an opportunity for PSP to grow its existing revenues in key strategic areas through organic growth and acquisitions."
"It is a great accomplishment for everyone at PSP to be recognized by Canada's Department of National Defence for the Company's research and development expertise and manufacturing capabilities in producing these life saving products for our Canadian soldiers - continuing to deliver on our mission to bring everyday heroes home safely," stated David Scott, PSP's Chairman of the Board.
PSP was awarded the contract by Public Works and Government Services Canada and will employ approximately 22 additional personnel to meet the final delivery date in winter 2006.
The mission statement of Pacific Safety Products Inc. is "...we bring everyday heroes home safely."(TM). PSP is an established industry leader in the production, distribution and sale of high-performance safety products such as: ballistic, stab and fragment protection vests; bomb and land mine retrieval suits; tactical clothing; emergency medical kits and rescue equipment. The Company strives to provide effective protective solutions for its customers by seeking out the latest technologies to serve their 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 with the Kelowna facility possessing one of the most advanced ballistic research labs in North America. PSP is a well-established manufacturer of a number of safety related product lines under the labels Pacific Emergency Products(R), PROTECTED by PSP(TM), EXPLOSAFE(R) and O2BOSS(TM).
FOR FURTHER INFORMATION CONTACT:
Pacific Safety Products Inc.