EXHIBIT 99.1
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DHB
INDUSTRIES INC.
NEWS FROM DHB INDUSTRIES INC.
2102 SW 2nd Street Pompano Beach, FL 33069
Tel: 954-630-0900 www.dhbindustries.com
COMPANY CONTACT: Investor Relations/Public Relations
Glenn Wiener, GW Communications
212-786-6013
ir@dhbt.com or pr@dhbt.com
DHB INDUSTRIES INC WITHDRAWS RELIANCE ON
ITS 2003 AND 2004 FINANCIAL STATEMENTS
POMPANO BEACH, FLORIDA, AUGUST 18, 2006 - DHB Industries Inc. (OTC Pink
Sheets: DHBT.PK), a leader in the field of protective body armor, announced
today that on August 17, 2006, the Executive Committee of the Board of Directors
of the Company concluded that the Company's previously issued consolidated
financial statements for the fiscal years ended December 31, 2004 and December
31, 2003, and the related financial information for those periods and interim
periods, should no longer be relied upon. The conclusion followed a
recommendation of the Company's recently appointed financial management,
supplied by AlixPartners, LLC, and a review of the pertinent facts.
The Company continues to conduct an analysis of its historical
information and records. Several professionals and advisors employed or retained
by the Company have highlighted discrepancies with respect to the reasonableness
of estimates and the accuracy of reported inventory, gross profit, and income
levels in fiscal years 2003 and 2004. Further, the Company's management has
concluded that at this time there is insufficient information in the Company's
records to permit making a determination of the magnitude of the inaccuracies or
the cumulative effect that any potential inaccuracies may have on the inventory,
gross profit and net income values reported by the Company for these prior
periods. The subsequent analysis could result in a restatement of the Company's
financial statements for the fiscal years ended December 31, 2004 and 2003.
In addition, in making its determination with regard to historical
financial statements, the Executive Committee considered the conclusions of the
Company's financial management that (i) the Company's existing internal controls
over financial reporting do not provide reasonable assurance regarding the
reliability of financial reporting and the preparation of financial statements
for external purposes in accordance with generally accepted accounting
principles and (ii) the lack of historical records and the lack of documentation
providing evidence of prior controls limits the Company's ability to
substantiate the financial reports produced during the fiscal years 2003 and
2004.
The Company continues its efforts to strengthen and enhance its
internal control system and position itself to complete its financial statements
and financial statement analysis. The Company is unable to predict at this time
when it will be in the position to file all required current and historical
financial statements with the Securities and Exchange Commission.
Management has discussed the matters disclosed in this press release
with Rachlin Cohen & Holtz LLP, the Company's independent registered public
accounting firm, and has notified Weiser LLP, the Company's former independent
registered public accounting firm, with regard to these matters.
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ABOUT DHB INDUSTRIES
DHB Industries, Inc.'s Armor Group is in the protective body armor industry. The
Company's highly recognized subsidiaries, Point Blank Body Armor, Inc.
(www.pointblankarmor.com) and Protective Apparel Corporation of America (PACA)
(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 U.S. and worldwide. DHB Sports Group,
consisting of Company subsidiary NDL Products, Inc. (www.ndlproducts.com),
produces and markets a comprehensive line of athletic supports and braces which
are merchandised through national superstore chains as well as through private
label distributors.
The Company maintains facilities in Deerfield Beach, FL, Oakland Park, FL,
Pompano Beach, FL, Jacksboro, TN and Washington, DC. 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 AND THE QUARTERLY REPORT ON FORM 10-Q FOR THE QUARTERLY
PERIODS ENDED MARCH 31, 2006 AND JUNE 30, 2006, (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, INCLUDING APPROVAL OF THE SETTLEMENT BY THE COURT, (7) THE IMPACT OF
COMPETITIVE PRODUCTS OR PRICING, (8) TECHNOLOGICAL CHANGES, (9) THE EFFECT OF
POLITICAL AND ECONOMIC CONDITIONS, (10) THE OUTCOME AND IMPACT OF LITIGATION TO
WHICH THE COMPANY IS A PARTY AND THE SECURITIES AND EXCHANGE COMMISSION AND
OTHER INVESTIGATIONS REGARDING THE COMPANY, AND (11) 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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