SUNRISE, FL, Aug. 7 /PRNewswire-FirstCall/ - Protective Products of America, Inc. ("PPA"), a leading manufacturer and distributor of advanced products in ballistics protection, is pleased to report that the U.S. Marine Corps ("USMC") has confirmed that it intends to enter into an agreement for a "Bridge Buy" for Modular Tactical Vests ("MTV") for a procurement amounting to approximately USD$17 million. Furthermore, PPA anticipates additional USMC orders for sustainment, or replacement, parts associated with the MTV in the near future.
The Company is also announcing that it has successfully amended its credit agreement with Canadian Imperial Bank of Commerce effective as of July 31, 2008. The amending agreement extends the maturity date of the Company's operating line of credit to August 29, 2008. The Company continues to negotiate with potential lenders and anticipates that it will refinance its current credit facility in advance of the amended date of maturity.
Business of the Company
Protective Products of America, Inc. ("PPA"), formerly known as Ceramic Protection Corporation, is headquartered in Sunrise, Florida, with production facilities in Newark, Delaware and Granite Falls, North Carolina. The Company, together with its subsidiaries, is engaged in the design, manufacture and marketing of advanced products used to provide ballistic protection for personnel and vehicles in the military and law enforcement markets. The Company's product portfolio includes lightweight ceramic armor for vehicles and military personnel, composite based products and concealable soft body armor products for law enforcement, and the Modular Tactical Vest ("MTV") ballistic system for military personnel.
In many high performance applications, such as handling ballistic threats, products made of advanced technical ceramics meet specifications that similar products made of metals, plastics or traditional ceramics cannot achieve. Advanced technical ceramics can withstand extremely high velocity ballistics, combine hardness with light weight characteristics, are highly resistant to corrosion and wear, and have low friction characteristics. Management is of the opinion that the Company is an acknowledged industry leader in the design and manufacture of high performance and high quality products used for ballistic protection. Protective Products International Corp, a wholly owned subsidiary of PPA, is an ISO 9001:2000 certified manufacturer. Furthermore, PPA is one of a very few companies capable of providing customers with an integrated personnel armoring system of ceramic plates, soft ballistic material and vests for soldiers.
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 potential delays, appeals or changes related to government orders in the defense sector.
PPA depends on reliable supplies of high quality source materials used in the manufacture of armor products, including aramid fabrics and polyethylene materials, 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 PPA. 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 Company's December 31, 2007 Annual Report dated March 31, 2008, and the Company's Annual Information Form dated March 31, 2008. These documents are available on SEDAR (www.SEDAR.com).
In light of certain sensitive aspects in regard to customers and products, PPA may choose not to disclose all information related to the purchasers of its products, such as government agencies, countries or other end-users. Products manufactured for export in the United States must first be approved for export by the appropriate U.S. government agencies. Other armor sales may be made to recognized domestic agencies such as the military and those involved in local, provincial, or national law enforcement and homeland security matters.
Investor Relations
Analyst and investor relations calls should be addressed to Ms. Grimie Del Valle, Corporate Investor Relations, at (954) 846-8222. Interested parties are also referred to the PPA's website www.cerpro.com for further information about PPA, its products and other recent announcements.
Mr. Stephen Giordanella Mr. Larry Moeller
Chief Executive Officer Chairman
Sunrise, Florida, USA
August 7, 2008
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