Ceramic Protection Corporation Announces Amended Credit Agreement with CIBC and Discontinuance of ArmorWorks Lawsuit



    Symbol: CEP
    Exchange: TSX

    SUNRISE, FL, July 8 /CNW/ - Ceramic Protection Corporation (the
"Corporation"), a leading manufacturer and distributor of advanced ballistic
protective products, is pleased to report that effective June 30, 2008, the
Corporation successfully amended its credit agreement with Canadian Imperial
Bank of Commerce. This amending agreement extends the maturity of the
Corporation's credit facilities until July 31, 2008. The Corporation has made
scheduled term payments of US$2M on May 1, 2008 and US$0.9M on June 30, 2008.
The Corporation is actively negotiating with potential lenders and anticipates
that it will be able to refinance its operating line of credit prior to the
amended maturation date.
    The Corporation is also pleased to report that the lawsuit filed by
ArmorWorks Enterprises, Inc. in Ontario against the Corporation, its
subsidiaries and directors has been discontinued. The lawsuit was pending in
the Ontario Superior Court of Justice since it was filed on March 25, 2008.
The Notice of Discontinuance was filed by ArmorWorks Enterprises, Inc. on
July 3, 2008.

    Business of the Corporation

    The Corporation is headquartered in Sunrise, Florida, with facilities in
Newark, Delaware and Granite Falls, North Carolina. The Corporation, together
with its subsidiaries, is engaged in the design, manufacture and marketing of
advanced products used to provide ballistic protection for personnel and
vehicles in the military and law enforcement markets. The Corporation's
product portfolio includes lightweight ceramic armour for vehicles and
military personnel, composite based products and concealable soft body armour
products for law enforcement and the Modular Tactical Vest (MTV) ballistic
system for military personnel.
    In many high performance applications, such as handling ballistic
threats, products made of advanced technical ceramics meet specifications that
similar products made of metals, plastics or traditional ceramics cannot
achieve. Advanced technical ceramics withstand extremely high velocity
ballistics, combine hardness with light weight, are highly resistant to
corrosion and wear, and have low friction characteristics. Management is of
the opinion that the Corporation is an acknowledged industry leader in the
design, manufacture, and sale of high performance and high quality products
used for ballistic protection. The Corporation's subsidiary, Protective
Products International is an ISO 9001:2000 certified manufacturer. Further,
the Corporation is one of very few companies able to provide customers with an
integrated personnel armouring system of ceramic plates, soft ballistic
material and vests for soldiers.

    Forward Looking Statements

    This release may contain forward looking statements including
expectations of future sales, cash flow, and earnings.  These statements are
based on current expectations that involve a number of risks and uncertainties
that could cause actual results to differ from those anticipated.  These risks
include, but are not limited to, uncertainties associated with the defense
industry, commodity prices, exchange rate fluctuations, and risks resulting
from potential delays, appeals or changes related to government orders in the
defense sector.
    The Corporation depends on reliable supplies of high quality source
materials used in the manufacture of armour products, including aramid fabrics
and polyethylene materials, and works actively with key suppliers to ensure
that requirements and demands for these materials are anticipated and properly
met. The foregoing is not exhaustive and other risks are detailed from time to
time in other disclosure filings of the Corporation. Should one or more of
these risks or uncertainties materialize, or should stated assumptions
underlying the forward looking statements prove incorrect, actual results may
vary materially from those described herein as anticipated, believed,
estimated or expected. The reader is also referred to other uncertainties and
risks discussed in detail in the MD&A section of the Corporation's
December 31, 2007 Annual Report dated March 31, 2008 and the Corporation's
Annual Information Form dated March 31, 2008.
    In light of certain sensitive aspects in regard to customers and
products, the Corporation may choose not to disclose all information related
to the purchasers of its products, such as government agencies, countries or
other end-users. Products manufactured for export in the United States must
first be approved for export by the appropriate U.S. government agencies.
Other armour sales may be made to recognized domestic agencies such as the
military and those involved in local, provincial, or national law enforcement
and homeland security matters.

    
    Mr. Stephen Giordanella        Mr. Larry Moeller
    Chief Executive Officer        Chairman
    

    %SEDAR: 00001737E




For further information:

For further information: Investor Relations: Analyst and investor
relations calls should be addressed to Ms. Grimie Del Valle, Corporate
Investor Relations, at (954) 846-8222; Interested parties are also referred to
the Corporation's website www.cerpro.com for further information about the
Corporation, its products and other recent announcements

Organization Profile

CERAMIC PROTECTION CORPORATION

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890