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 INDUSTRIES WILL VIGOROUSLY DEFEND LAWSUITS
Westbury, NY - September 22, 2005 - DHB Industries, Inc., operating principally
in the field of body armor, announced that, since September 16, 2005, it has
been served with a number of lawsuits, all of which contain similar allegations.
One of the lawsuits is filed as a derivative action and names the Company and
all of its directors as defendants. All of the other lawsuits are purported
class actions and name the Company and all or some of its directors as
defendants.
The lawsuits allege violations of the federal securities laws and/or state law
claims based on purported fraud, misrepresentation, and breach of fiduciary
duty. The central allegation in each lawsuit is that DHB public disclosures from
April 2004 to August 2005 were false or misleading because they did not disclose
certain information. The lawsuits allege that DHB's body armor products were
defective and failed to meet the standards of its customers, and that these
alleged facts should have been publicly disclosed. The lawsuits seek monetary
damages and various forms of equitable relief. The Company adamantly denies that
any of its public disclosures have been false or misleading.
These lawsuits followed DHB's announcement, on August 30, 2005, that it was
discontinuing production of Zylon(R)-containing bullet resistant products due to
the sudden, unexpected action of the National Institute of Justice (NIJ), a
division of the Department of Justice, in issuing a Body Armor Standard Advisory
Notice alerting law enforcement agencies of the potential risks associated with
the use of Zylon(R) in body armor. As a result, the Company immediately
announced on August 30, 2005 that it was implementing a replacement program to
assist customers who presently have body armor containing Zylon(R).
As previously disclosed, the Company remains confident in the safety and
performance of all of its body armor products, including those containing
Zylon(R). The vast majority of body armor sold by the Company does not contain
any Zylon(R). This includes substantially all of the body armor sold to branches
of the U.S. Military. During the past five years, sales of body armor containing
Zylon(R) made up less than 5% of the Company's total revenues. All of these
models were certified by the NIJ before being sold to customers.
The Company cannot predict the outcome of the lawsuits or whether the Company's
financial condition or results of operations may be materially affected as a
result of the lawsuits. Because of their similarity, the Company believes that
most or all of the lawsuits will be consolidated into a single action and that
the Company will not be required to defend all of the lawsuits individually. The
Company believes that the recently filed lawsuits are baseless and intends to
vigorously defend them.
ABOUT DHB INDUSTRIES, INC.
DHB Industries Inc.'s Armor Group is in the rapidly 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.