EXHIBIT 99.1
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NEWS FROM DHB INDUSTRIES INC.
400 POST AVENUE, SUITE 303, WESTBURY, NY 11590
TEL: 516/997-1155 FAX: 516/997-1144 WWW.DHBINDUSTRIES.COM
COMPANY CONTACT: Larry Ellis, CAO
516/997-1155
lellis@dhbt.com
FOR IMMEDIATE RELEASE
DHB INDUSTRIES INC. REPORTS RECEIPT OF "WELLS NOTICE"
FROM THE SECURITIES AND EXCHANGE COMMISSION
WESTBURY, NY - (May 25, 2006) - DHB Industries, Inc. (AMEX:DHB), a leader in the
field of protective body armor, announced today that it received a "Wells
Notice" on May 23, 2006 from the staff (the "Staff") of the Securities and
Exchange Commission (the "SEC").
The "Wells Notice" indicates that the Staff has preliminarily determined to
recommend that the SEC bring a civil injunctive action against the Company
alleging violations of the antifraud, reporting and books and records provisions
of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Should
it proceed with an action, the Wells notice states that the Staff will allege
that the Company recorded false journal entries in 2005 relating to its
inventory for the purpose of materially increasing its gross profit margin and
net income. The Wells notice indicates that the Staff may seek a temporary
restraining order, preliminary injunction, permanent injunction, the appointment
of a corporate monitor and civil money penalties. On March 31, 2006, the Company
disclosed that investors should no longer rely on the Company's previously
issued interim financial statements for 2005 as a result of the identification
of certain adjustments of inventory, both positive and negative, that are
individually material to each quarter.
Under SEC procedures, recipients of "Wells Notices" have the opportunity to make
a written submission before the Staff makes a formal recommendation to the SEC
on whether any action should be brought by the SEC. The Company is currently in
discussions with the Staff to address this matter.
As also previously reported, the Company is currently the subject of an
investigation by the SEC with respect to certain related party transactions and
executive compensation matters regarding the Company and affiliates of Mr. David
H. Brooks, the Company's Chief Executive Officer. The Company is unable to
predict the outcome of this investigation or these other matters.
ABOUT DHB INDUSTRIES, INC.
DHB Industries, Inc. is a global leader in high performance, protective
technologies, including: state of the art ballistic technologies and advanced
therapeutic technologies. DHB Armor Group is focused on the design, manufacture,
and distribution of bullet resistant and protective body armor for military, law
enforcement, and corrections in the United States, and worldwide. DHB Armor
Group includes the highly recognized subsidiaries, Point Blank Body Armor, Inc.
(WWW.POINTBLANKARMOR.COM) and Protective Apparel Corporation of America (PACA)
(WWW.PACABODYARMOR.COM). DHB Sports Group produces and markets a comprehensive
line of athletic supports and braces which are merchandised through national
superstore chains as well as private label distributors.
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The Company maintains facilities in Westbury, NY, Deerfield Beach, FL, Oakland
Park, FL, Pompano Beach, FL, Jacksboro, TN and Arlington, VA. To learn more
about DHB Industries, Inc., visit the website at (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, WHICH ARE BASED LARGELY ON THE COMPANY'S
EXPECTATIONS AND ARE SUBJECT TO VARIOUS BUSINESS RISKS AND UNCERTAINTIES,
CERTAIN OF WHICH ARE BEYOND THE COMPANY'S CONTROL. WORDS SUCH AS "EXPECTS,"
"ANTICIPATES," "TARGETS," "GOALS," "PROJECTS," "INTENDS," "PLANS," "BELIEVES,"
"SEEKS," "ESTIMATES," VARIATIONS OF SUCH WORDS, AND SIMILAR EXPRESSIONS ARE
INTENDED TO IDENTIFY SUCH FORWARD-LOOKING STATEMENTS. THESE FORWARD-LOOKING
STATEMENTS ARE ONLY PREDICTIONS THAT SPEAK AS OF THE DATE HEREOF AND ARE SUBJECT
TO RISKS, UNCERTAINTIES AND ASSUMPTIONS THAT ARE DIFFICULT TO PREDICT.
THEREFORE, ACTUAL RESULTS MAY DIFFER MATERIALLY AND ADVERSELY FROM THOSE
EXPRESSED IN ANY FORWARD-LOOKING STATEMENTS. FACTORS THAT MIGHT CAUSE OR
CONTRIBUTE TO SUCH DIFFERENCES INCLUDE, BUT ARE NOT LIMITED TO, (1) EXPECTATIONS
AS TO THE TIMING OF THE FILING OF THE REPORT ON FORM 10-K FOR THE FISCAL YEAR
ENDED DECEMBER 31, 2005, (2) ANY LISTING REQUIREMENTS WHICH MAY BE PRESCRIBED OR
ANY DETERMINATION WHICH MAY BE MADE BY THE AMERICAN STOCK EXCHANGE, (3)
UNCERTAINTY OF FUTURE FINANCIAL RESULTS, (4) ADDITIONAL FINANCING REQUIREMENTS,
(5) DEVELOPMENT OF NEW PRODUCTS, (6) GOVERNMENT APPROVAL PROCESSES, (7) THE
IMPACT OF COMPETITIVE PRODUCTS OR PRICING, (8) TECHNOLOGICAL CHANGES, (9) THE
EFFECT OF POLITICAL AND ECONOMIC CONDITIONS AND (10) OTHER UNCERTAINTIES
DETAILED IN THE COMPANY'S FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION.
YOU ARE CAUTIONED NOT TO PLACE UNDUE RELIANCE ON THESE FORWARD-LOOKING
STATEMENTS THAT SPEAK ONLY AS OF THE DATE HEREOF. THE COMPANY UNDERTAKES NO
OBLIGATION TO REVISE OR UPDATE PUBLICLY ANY FORWARD-LOOKING STATEMENTS TO
REFLECT ANY CHANGE IN THE EXPECTATIONS OF OUR MANAGEMENT WITH REGARD THERETO OR
ANY CHANGE IN EVENTS, CONDITIONS, OR CIRCUMSTANCES ON WHICH ANY SUCH STATEMENTS
ARE BASED.
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