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ARNPRIOR, ONTARIO–(Marketwire – Jan. 26, 2012) – Pacific Safety Products Inc. (TSX VENTURE:PSP), a leading North American manufacturer of advanced armour solutions, is pleased to announce that a new contract was recently awarded by the Ontario Ministry of Community Safety and Correctional Services for the delivery and disposal of ballistic personal soft body armour systems. This omnibus contract allows Municipal and Provincial agencies to acquire PSP’s products through pre-negotiated arrangements. This Contract has an initial period of performance of three years with an option for an additional two years. Based on historical data the Company estimates the potential sales value of this Contract to be between $12.5 million to $15 million, including the option years.

The contract will allow the Municipal and Provincial agencies, including all advisory, adjudicative, regulatory and operational service agencies and other entities falling within the Public Service, to purchase the Company’s NIJ 0101.06 certified HeliX male and female armour and carriers. The products will be manufactured at the Company’s Arnprior, Ontario facility. The contract has commenced effective January 16, 2012 with new orders and deliveries.

According to Doug Lucky, CEO, “PSP has won this Contract in a fair, open and transparent competitive process, and the selection of the Company by this customer reflects well on the quality of our products, services we provide, and customer value we deliver.”

Customers of PSP include Defence, Security and Law Enforcement agencies. For reasons associated with the unique role our customers play in protecting citizens, the Company is not always at liberty to disclose their identity. Pacific Safety Products has been a trusted supplier of protective armour solutions to law enforcement in Canada for over 20 years.

ARNPRIOR, ONTARIO–(Marketwire – Jan. 23, 2012) – Pacific Safety Products Inc. (TSX VENTURE:PSP) (“PSP” or the “Company”), a North American manufacturer of advanced armour and personal protection solutions, today announced that it has entered into a letter of intent with an affiliate of Sun Capital Partners, Inc., an arm’s length third party (the “Purchaser”) to sell substantially all of its assets on a cash-free, debt-free basis for cash payable at closing (the “Sale Transaction”). During an exclusivity period, the Purchaser will complete a due diligence review, and the parties will endeavor to negotiate a mutually satisfactory definitive purchase agreement.

Faced with a challenging operating environment, management and the board of directors of the Company have concluded the Sale Transaction is in the best interests of the Company and its stakeholders.

If the Sale Transaction closes, it is expected that the Company will have no operating assets, the Company will cease to be a manufacturing company and the Company’s common shares will be transferred to the NEX board of the TSX Venture Exchange while it formulates a strategic direction to maximize value for shareholders.

COMPLETION OF THE PROPOSED SALE TRANSACTION IS SUBJECT TO A NUMBER OF CONDITIONS, INCLUDING BUT NOT LIMITED TO TSX VENTURE EXCHANGE ACCEPTANCE AND SHAREHOLDER APPROVAL. THE SALE TRANSACTION CANNOT CLOSE UNTIL THE REQUIRED SHAREHOLDER APPROVAL IS OBTAINED. THERE CAN BE NO ASSURANCE THAT THE SALE TRANSACTION WILL BE COMPLETED AS PROPOSED OR AT ALL. THERE IS ALSO NO ASSURANCE THAT THE NET PROCEEDS OF SUCH A TRANSACTION WILL REPRESENT A PREMIUM TO THE CURRENT TRADING PRICE OF THE COMPANY’S SECURITIES.
INVESTORS ARE CAUTIONED THAT, EXCEPT AS DISCLOSED IN THE MANAGEMENT INFORMATION CIRCULAR WHICH IS TO BE MAILED TO SHAREHOLDERS, ANY INFORMATION RELEASED OR RECEIVED WITH RESPECT TO THE PROPOSED SALE TRANSACTION MAY NOT BE ACCURATE OR COMPLETE AND SHOULD NOT BE RELIED UPON. TRADING IN THE SECURITIES OF THE COMPANY SHOULD BE CONSIDERED HIGHLY SPECULATIVE.

ARNPRIOR, ONTARIO–(Marketwire – Dec. 20, 2011) - Pacific Safety Products Inc. (“PSP” or the “Company”) (TSX VENTURE:PSP), today reported financial results for the three month period ended September 30, 2011.

Highlights:

• The Company is reporting under International Financial Reporting Standards (“IFRS”) for the three month period ended September 30, 2011 including the restatement of comparative figures.
• Sales for the first quarter were $3.5 million being approximately $0.8 million or 19.7% lower than first quarter of the prior year of $4.3 million which includes revenue from the Company’s former distribution business.
• The gross margin percentage for the first quarter was 24.3%, an improvement over the gross margin of 21.9% for the first quarter of the prior year. The increase in gross margin percentage, offset by lower sales, represented a decrease of $0.1 million in gross margin dollars or 10.7% compared to the prior year.
• Operating expenses for the first quarter were $1.3 million, approximately 12.9% lower than first quarter of the prior year of $1.5 million.
• Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”)^[1] was a loss of $0.4 million for the first quarter compared to a loss of $0.4 million in the first quarter of the prior year.
• Working capital declined from $2.9 million at June 30, 2011 to $2.8 million at September 30, 2011. The working capital ratio at September 30, 2011 was 1.76 and improved compared to 1.69 at June 30, 2011, and the debt to tangible net worth ratio at September 30, 2011 was 1.68 and improved compared to 1.87 at June 30, 2011 and 25.9 at July 1, 2010.

“Our primary focus is adding value for our customers in conjunction with revenue stability and growth”, says Chief Executive Officer, Doug Lucky, “and in order to further strengthen the Company, we continue to consider and evaluate on an ongoing basis, all alternatives available to us including seeking additional sources of financing, identifying and pursuing strategic partnerships, and other value enhancing opportunities.”

About PSP:

The mission statement of Pacific Safety Products Inc. is …we bring everyday heroes home safely®. PSP is an established industry leader in the production, distribution and sale of high-performance and high-quality safety products for the defence and security market. These products include body armour to protect against ballistic, stab and fragmentation threats, ballistic blankets to reduce blast effects, tactical clothing, and protective products against chemical and biological hazards. PSP is the largest body armour manufacturer in Canada, directly supplying the Canadian Department of National Defence, Federal Government Agencies and major Canadian law enforcement organizations. The Company, through its U.S. subsidiary Sentry Armor Systems Inc., provides body armour products under the GH Armor Systems® brand to U.S. based law enforcement and private security firms. The Company also produces tactical clothing. Pacific Safety Products is a reporting issuer in British Columbia, Alberta and Ontario, Canada and publicly trades under the symbol PSP on the TSX Venture Exchange.

ARNPRIOR, ONTARIO–(Marketwire – Dec. 15, 2011) - Pacific Safety Products Inc. (TSX VENTURE:PSP), a leading North American manufacturer of advanced armour solutions, today announced that it has been awarded a Cdn $1.1 million contract amendment from Public Works and Government Services Canada for the supply of protective products to the Department of National Defence (DND). The products will be manufactured at the Company’s Arnprior, Ontario facility for delivery during the second half of the Company’s current fiscal year.

Pacific Safety Products has been the trusted supplier of protective armour solutions to DND for over 20 years including the Fragmentation Protective Vest (FPV) and the Level IIIA Patrol Vest for the Military Police.

About PSP

The mission statement of Pacific Safety Products Inc. is …we bring everyday heroes home safely®. PSP is an established industry leader in the production, distribution and sale of high-performance and high-quality safety products for the defence and security market. These products include body armour to protect against ballistic, stab and fragmentation threats, ballistic blankets to reduce blast effects, and protective products against chemical and biological hazards. PSP is the largest body armour manufacturer in Canada, directly supplying the Canadian Department of National Defence, Federal Government Agencies and major Canadian law enforcement organizations. The Company, through its U.S. subsidiary Sentry Armor Systems Inc., provides body armour products under the GH Armor Systems® brand to U.S. based law enforcement and private security firms. The Company also produces tactical clothing. Pacific Safety Products is a reporting issuer in British Columbia, Alberta and Ontario, Canada and publicly trades under the symbol PSP on the TSX Venture Exchange.

ARNPRIOR, ONTARIO–(Marketwire – Oct. 25, 2011) - Pacific Safety Products Inc. (“PSP” or the “Company”)(TSX VENTURE:PSP), a leading North American manufacturer of advanced armour and personal protection solutions, today announced that its head office has been co-located at its Arnprior, Ontario manufacturing facility.

In conjunction with the head office relocation, the Company also announced that it has successfully subleased its former head office space in Kanata, Ontario, and has settled a lease obligation for a redundant plant location inherited pursuant to its merger with Zuni Holdings Inc. The Company estimates that it will save approximately $930,000 in rent and common costs over the remaining terms of the two subject leases.

“Having our people physically working together in our Arnprior, Ontario and Dover, Tennessee locations strengthens our culture and makes us more effective. Exiting redundant lease obligations allow us to put the cash savings to work elsewhere in the business to create value”, says Chief Executive Officer, Doug Lucky.

ARNPRIOR, ONTARIO–(Marketwire – Oct. 24, 2011) - Pacific Safety Products Inc. (TSX VENTURE:PSP) (“PSP” or the “Company”), a leading North American manufacturer of advanced armour and personal protection solutions, today reported financial results for the three months and year ended June 30, 2011.

Highlights:

• Working capital improved from $0.3 million at June 30, 2010 to $2.9 million at June 30, 2011. The working capital ratio at June 30, 2011 was 1.69 compared to 1.05 at June 30, 2010 and the debt to tangible net worth ratio at June 30, 2011 was 1.59 compared to 9.06 at June 30, 2010.
• On August 31, 2011, the Company entered into an agreement with a major Canadian bank to become PSP’s principal Canadian lender and to provide a $1.0 million credit facility. The Company fully repaid its previous Canadian lender and is no longer subject to a forbearance agreement.
• Sales for the year were $22.7 million, a decrease of 24.4% compared to the prior year’s sales of $29.9 million.
• The gross margin percentage for the year was 22.0%, which was an improvement over gross margin of 19.7% in the prior year. The increase in gross margin percentage, offset by lower sales, represented a decrease of $0.9 million in gross margin dollars compared to the prior year.
• Operating expenses of $6.5 million decreased by $0.9 million or 12.1% from the prior year.
• Other items include a loss of $1.5 million on the sale of certain assets of APS Distributors, a division of PSP located in Bedford, Nova Scotia.
• Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”)^[1] was a loss of $0.4 million compared to a loss of $0.5 million in the prior year.

“We’ve stabilized the balance sheet and focused the business to move forward”, says Chief Executive Officer, Doug Lucky. He summed up the year as follows, “The Company has successfully realized a number of business transformation achievements including building a new management team, setting a clear strategic direction, building out our NIJ.06-certified body armour product portfolio, entering into a new Canadian lender relationship, and working closely with our customers and suppliers among other achievements.”

ARNPRIOR, ONTARIO–(Marketwire – Sept. 13, 2011) - Pacific Safety Products Inc. (TSX VENTURE:PSP), a leading North American manufacturer of advanced armour and personal protection solutions, today announced that the Department of National Defence (“DND”) has exercised its first option for amendment under a previously announced contract for the supply of protective products. The option exercise is worth an estimated $380,000 and is to be delivered by March, 2012.

The Company had announced on June 8, 2011, that it had been awarded a new contract through competitive tender from Public Works and Government Services Canada for the supply of protective products to the DND. The contract was initially worth almost $500,000 and has options for two amendments over the next 2 years. The initial contract has been delivered. The custom products will be manufactured at the Company’s Arnprior, Ontario facility.

PSP was also the incumbent supplier to DND for the Fragmentation Protective Vest (“FPV”), Fragmentation Throat Protectors, and other specialized protective products.

ARNPRIOR, ONTARIO–(Marketwire – Aug. 31, 2011) - Pacific Safety Products Inc. (TSX VENTURE:PSP), a leading North American manufacturer of advanced armour solutions, today announced that it has entered into a Loan Agreement (“Agreement”) with Royal Bank of Canada (“RBC”) to provide a credit facility.

Under the terms of the Agreement, advances are repayable on demand with interest payable monthly calculated at RBC’s prime lending rate plus 1.95% per annum. As security for the loan, RBC has been granted a security interest in all of the assets of PSP and its subsidiaries. The maximum credit facility is $1.0 million.

PSP is required to meet certain general covenants as outlined in its credit facility agreement with RBC. The Agreement has no financial covenants.

“We are delighted to be working with one of Canada’s leading financial institutions,” stated Doug Lucky, CEO. “We look forward to the opportunity to build a strong relationship as the Company continues to execute its plans.”

The new Agreement is in replacement of the Company’s previous principal Canadian operating lender.

ARNPRIOR, ONTARIO–(Marketwire – Aug. 23, 2011) – Pacific Safety Products Inc. (TSX VENTURE:PSP), a leading North American manufacturer of advanced armour solutions, today announced that it has been awarded a new standing offer through competitive tender from Public Works and Government Services Canada for the supply of soft body armour and carrier products to the Royal Canadian Mounted Police (“RCMP”). The standing offer is worth almost $1 million over the next four years, subject to the number of units actually ordered, and will be manufactured at the Company’s Arnprior, Ontario facility.
“This award confirms that PSP remains a trusted supplier to the RCMP of protective armour solutions for law enforcement,” stated Doug Lucky, CEO. “PSP is uniquely positioned to understand the challenges for ensuring compliance to demanding ballistic and material specifications to guarantee both durability and life saving performance in the field.”

KANATA, ONTARIO–(Marketwire – June 14, 2011) - Pacific Safety Products Inc. (“PSP” or the “Company”)(TSX VENTURE:PSP) today reported that restricted cash of $2.5 million being held in escrow related to the sale of a Zuni subsidiary and other assets has been released without any claims against the escrowed amount. The cash will be used for debt management and other corporate purposes.

“The release of the escrowed cash in its entirety marks yet another important milestone in the transformation of the Company”, says Chief Executive Officer, Doug Lucky, “This is essentially equity capital we will use to finance and grow the business.”

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