EXHIBIT 99.1
[DHB LOGO GOES HERE] NEWS FROM DHB INDUSTRIES INC.
400 Post Avenue, Suite 303 * Westbury, NY 11590
T:516/997-1155 * F:516/997-1144 www.dhbindustries.com
COMPANY CONTACT: Dawn Schlegel, CFO
DHB Industries Inc.
516/997-1155
dschlegel@dhbt.com
FOR IMMEDIATE RELEASE
DHB CONFIRMS COMMITMENT TO OFFICER SAFETY
DHB DISCONTINUES USE OF ZYLON(R) IN BULLET RESISTANT PRODUCTS
ANNOUNCES VOLUNTARY REPLACEMENT PROGRAM FOR NON-COMPLIANT VESTS
PRELIMINARILY ESTIMATES A $60 MILLION CHARGE TO THIRD QUARTER 2005 EARNINGS
Westbury, NY August 30, 2005. DHB Industries Inc. (AMEX:DHB), operating
principally in the growing field of body armor, announced today that although it
remains confident in the safety and performance of its body armor products
containing Zylon(R), it has discontinued the use of Zylon(R) in its bullet
resistant products on August 24, 2005. The Company has ceased production of all
Zylon(R)-containing bullet resistant products due to the National Institute of
Justice's (NIJ) decision to revoke the NIJ's previously issued certifications of
all vests containing Zylon(R) in the marketplace. The Company also announces
that it will be implementing a Voluntary Replacement Program to assist its
customers who presently have non NIJ-compliant Zylon(R) body armor.
It is important to note that this Voluntary Replacement Program is not a product
recall. This action is a result of the de-certification by the NIJ of body armor
with Zylon(R), which will result in certain customers having body armor that
will not be in compliance with the new NIJ requirements. This program will
assist the law enforcement community in replacing its Zylon(R) body armor with,
NIJ-compliant body armor.
"We will diligently work with our customers to address these issues. Officer
safety is and will remain our number one priority," stated General (Ret.) Larry
Ellis, DHB's President. He continued, "It is our intent to work with the law
enforcement community to supply them with replacement vests as rapidly as
possible. We encourage all those presently using bullet resistant body armor
containing Zylon(R) to continue wearing their body armor as recommended by the
Department of Justice, until their vest have been replaced or exchanged. We
believe that, based upon testing and research, that our vests are safe for use
by officers in the field."
The Company will record a charge to third quarter earnings to account for the
anticipated cost of the Zylon(R) Replacement Program and discontinued sales of
products that contain Zylon(R). The amount of the third quarter charge has not
yet been finalized, but is not expected to exceed $60 million.
ABOUT DHB INDUSTRIES, INC.
DHB Industries Inc.'s Armor Group is in the growing protective body armor
industry. Its highly recognized subsidiaries, Point Blank Body Armor Inc.
(HTTP://WWW.POINTBLANKARMOR.COM) and Protective Apparel Corporation of America
(PACA) (HTTP://WWW.PACABODYARMOR.COM) are focused on the design, manufacture,
and distribution of bullet resistant and protective body armor for military, law
enforcement, and corrections in the US and worldwide. DHB Armor Group's
customers include the U.S. Army, Air Force, Navy, Marines, Coast Guard, Secret
Service, FBI, DEA, INS, ATF, NATO, U.S. Marshals, the NYC Police Department, the
LA Police Department, and the California Highway Patrol.
DHB Sports Group produces and markets a comprehensive line of athletic supports
and braces which are merchandised through national superstore chains including
Target and Wal-Mart, as well as private label distributors such as Meijer,
Amerisource, Cardinal Health, and CDMA.
DHB maintains facilities in Westbury, NY, Deerfield Beach, FL, Pompano Beach,
FL, Oakland Park, FL, Jacksboro, TN, and Arlington, VA. To learn more about DHB
Industries Inc., visit the website at HTTP://WWW.DHBINDUSTRIES.COM.
SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF
1995: THE STATEMENTS WHICH ARE NOT HISTORICAL FACTS CONTAINED IN THIS PRESS
RELEASE ARE FORWARD-LOOKING STATEMENTS THAT INVOLVE CERTAIN RISKS AND
UNCERTAINTIES INCLUDING BUT NOT LIMITED TO RISKS ASSOCIATED WITH THE UNCERTAINTY
OF FUTURE FINANCIAL RESULTS, ADDITIONAL FINANCING REQUIREMENTS, DEVELOPMENT OF
NEW PRODUCTS, GOVERNMENT APPROVAL PROCESSES, THE IMPACT OF COMPETITIVE PRODUCTS
OR PRICING, TECHNOLOGICAL CHANGES, THE EFFECT OF POLITICAL AND ECONOMIC
CONDITIONS AND OTHER UNCERTAINTIES DETAILED IN THE COMPANY'S FILINGS WITH THE
SECURITIES AND EXCHANGE COMMISSION.