EXHIBIT 99.1
NEWS FROM DHB INDUSTRIES INC
2102 SW 2nd Street * Pompano Beach, FL 33069
Tel: 954-630-0900 * www.dhbindustries.com
COMPANY CONTACT: Media Relations/Investor Relations
Glenn Wiener
212-786-6013
pr@dhbt.com or ir@dhbt.com
DHB INDUSTRIES ANNOUNCES PRELIMINARY COURT APPROVAL OF CLASS ACTION SETTLEMENT
AND PROVIDES UPDATES ON FINANCIAL AND CORPORATE MATTERS
Pompano Beach, Florida, July 9, 2007 - DHB Industries Inc. (OTC Pink Sheets:
DHBT.PK), a leader in the field of protective body armor, announced that the
United States District Court, Eastern District of New York, had granted the
plaintiffs' motion for preliminary approval of the settlements entered into in
connection with the securities class action against the Company and certain
individual defendants, as well as the related shareholder derivative action.
Under the settlement documents, the plaintiff class consists of all persons who
purchased or otherwise acquired DHB shares during the period from November 18,
2003 through November 30, 2006.
After notices of the settlement are mailed and published, the Court will hold a
hearing to consider and determine whether to grant final approval of the
settlement. The court has scheduled the hearing for October 5, 2007.
Further, the Company provided an update to its January 2007 financial
disclosure. For the six months ending on June 30, 2007, the Company received
approximately $191 million in cash receipts (a non-GAAP measure consisting
principally of collections of trade accounts receivable, but also certain other
operating and non-operating cash receipts). The majority of the cash receipts
relate to shipments under Military and Domestic contracts. Cash receipts and
liquidity requirements vary during the year based on orders and shipments, and
orders under US Military contracts may become less active near the change in the
Federal fiscal year in October.
As of June 30, 2007, the Company had approximately $7 million outstanding under
its credit facility. During the first six months of 2007, debt outstanding
averaged approximately $6 million. Outstanding amounts fluctuate daily based on
collections from customers and the timing of payments for goods and services.
As of June 30, 2007, the Company had 51,027,535 shares of its common stock
issued and outstanding.
Additionally, the Company reaffirmed that it remains on track to file audited
annual financial results through 2006 by the end of the third quarter of 2007.
The Company is working with its independent auditors to complete the financial
statements required by the Securities and Exchange Commission (SEC).
Larry Ellis, President and CEO stated, "While we are aggressively pursuing new
opportunities, our business remains healthy across all customer segments. The
major portion of our business remains with the Defense Department, but we have
seen a proportionate increase in domestic law enforcement business compared to
prior years. Our approximately 1,200 employees continue to manufacture high
quality products, and their dedication has enabled us to improve operating
efficiencies and to consistently meet production deadlines and standards."
Ellis continued, "We also continue to improve the systems and controls
throughout the organization that are vital to our long-term growth. Overall, we
have confidence in our Company's future and remain focused on enhancing
shareholder value."
- MORE -
ABOUT DHB INDUSTRIES
DHB Industries Inc.'s highly recognized subsidiaries, Point Blank Body Armor,
Inc. (www.pointblankarmor.com) and Protective Apparel Corporation of America
(PACA) (www.pacabodyarmor.com) are in the protective body armor industry and 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. 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) THE
COMPANY'S LACK OF AUDITED FINANCIAL STATEMENTS AND ITS ABILITY TO FILE ITS
PERIODIC REPORTS WITH THE SECURITIES AND EXCHANGE COMMISSION ON A TIMELY BASIS,
(2) IMPROVEMENT IN THE COMPANY'S INTERNAL CONTROL STRUCTURE OVER FINANCIAL
REPORTING, (3) DE-LISTING FROM THE AMERICAN STOCK EXCHANGE, (4) UNCERTAINTY OF
FUTURE FINANCIAL RESULTS, (5) ADDITIONAL FINANCING REQUIREMENTS, (6) DEVELOPMENT
OF NEW PRODUCTS, (7) GOVERNMENT APPROVAL PROCESSES, INCLUDING APPROVAL OF THE
SETTLEMENT BY THE COURT, (8) THE IMPACT OF COMPETITIVE PRODUCTS OR PRICING, (9)
TECHNOLOGICAL CHANGES, (10) THE EFFECT OF POLITICAL AND ECONOMIC CONDITIONS,
(11) 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 (12) 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.
- #### -