[ARMOR HOLDINGS, INC. LOGO] ARMOR HOLDINGS, INC. FOR IMMEDIATE RELEASE - ------------------------------------------------------------------------------- CONTACT: Jonathan M. Spiller President & Chief Executive Officer 904/741-5400 ARMOR HOLDINGS INC. REPORTS FIRST QUARTER EARNINGS PER SHARE OF $0.16, UP 60 PERCENT (INCLUDING NON-RECURRING GAIN) Jacksonville, Florida (May 3, 1999) - Armor Holdings, Inc. [AMEX: ABE] announced today revenues and earnings for the three month period ended March 31, 1999. For the three months, revenues increased 37 percent to $26.8 million from $19.6 million in the same period last year. This increase is the result of a combination of acquisitions and internal growth. Net income for the three month period increased 54 percent to $2.7 million from $1.8 million last year, and includes a non-recurring gain of $0.5 million from the sale of the Company's equity in Mace Security International. Without this non-recurring gain, net income increased 36 percent to $2.4 million. Diluted earnings per share were $0.16 for the three month period ($0.14 before the non-recurring gain), compared to $0.10 for 1998. Revenues in the ArmorGroup Services division were $12.8 million this quarter, up approximately 9 percent from the $11.8 million in the first quarter last year. Revenues in the Armor Holdings Products division increased 79 percent to $14.0 million from the $7.8 million reported last year. Armor Holdings is a leading global provider of security risk management services to multi-national corporations and governmental agencies through our ArmorGroup Services division. Armor Holdings is also a leading manufacturer of security products for law enforcement personnel around the world through our Armor Holdings Products division. ArmorGroup Services provides sophisticated security planning and risk management, electronic security systems integration, consulting and training services, as well as intellectual property asset protection, business intelligence and investigative services. Armor Holdings Products manufactures and sells a broad range of high quality branded law enforcement equipment. Such products include ballistic resistant vests and tactical armor, less-than-lethal munitions, anti-riot products and narcotic identification kits. This press release contains forward-looking statements that involve risks and uncertainties, including those relating to the execution of acquisition strategies, the expansion of product lines and the increase of distribution networks and product sales. Armor Holdings, Inc.'s actual results could differ materially from those discussed in such forward-looking statements based on a variety of factors, including but not limited to, the actions of current and potential new competitors, changes in technology, adoption of new laws and regulations, the nature and amount of the company's revenues and expenses and overall economic conditions. Other risks are reflected in the Company's filings with the Securities and Exchange Commission. (See attached financial statement for more information) ARMOR HOLDINGS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) (in thousands, except per share amounts) Three Months Ended March 31, 1999 March 31, 1998 -------------- -------------- REVENUES: Services $12,815 $11,800 Products 14,025 7,835 -------------- -------------- Total Revenues $26,840 $19,635 -------------- -------------- COSTS AND EXPENSES: Cost of sales 16,290 13,601 Operating expenses 6,493 3,454 Amortization 379 228 Equity in earnings of investees (140) (155) Interest (income) expense, net (44) (242) -------------- -------------- Operating income 3,862 2,749 Other income 513 -- -------------- -------------- INCOME BEFORE PROVISION FOR INCOME TAXES 4,375 2,749 PROVISION FOR INCOME TAXES 1,636 975 -------------- -------------- NET INCOME APPLICABLE TO COMMON SHAREHOLDERS $2,740 $1,774 ============== ============== BASIC EARNINGS PER SHARE $ 0.17 $ 0.11 ============== ============== DILUTED EARNINGS PER SHARE $ 0.16 $ 0.10 ============== ============== WEIGHTED AVERAGE SHARES-BASIC 16,284 16,037 ============== ============== WEIGHTED AVERAGE SHARES-DILUTED 17,476 17,154 ============== ============== See notes to condensed consolidated financial statements.