Ceramic Protection Corporation Announces Closing of Private Placement of Subordinated Convertible Debentures



    Symbol: CEP
    Exchange: TSX

    CALGARY, Feb. 5 /CNW/ - Ceramic Protection Corporation (the
"Corporation"), a leading manufacturer and distributor of advanced ballistic
protective products, is pleased to announce that it has closed its previously
announced non-brokered private placement and issued US$6.0 million of
subordinated convertible debentures, subject to the final approval of the
Toronto Stock Exchange.
    The debentures carry an interest rate of 10% for a three-year term with a
conversion price of US$6.57. The Corporation will have the option to force
conversion if, after the first year of the term of the debentures, its common
shares trade at or above the Canadian dollar equivalent of US$9.10 for 30 or
more consecutive trading days. Funds from the private placement will be used
for general corporate and working capital purposes. US$2.35 million of the
debentures were placed with certain directors of the Corporation.

    Business of the Corporation

    The Corporation, headquartered in Sunrise, Florida, USA, with offices in
Newark, Delaware, USA, is a certified manufacturer and distributor of advanced
materials for use in the ballistic protection marketplace. The Corporation
manufactures a wide range of products used to provide protection for personnel
and vehicles, including a wide range of ceramic armour products and multiple
composite-based products. In conjunction with its wholly owned subsidiary,
Ceramic Protection Corporation of America of Newark, Delaware, the Corporation
also manufactures a wide range of boron carbide, silicon carbide and
polyethylene products for use in personnel armour systems. PPI of Sunrise,
Florida, manufactures a growing range of soft armour products for the law
enforcement and military markets.

    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, 2006 Annual Report dated March 20, 2007 and also the
Corporation's Annual Information Form.
    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. Armour products destined for export which are manufactured in
Canada must first be approved by the Canadian Department of Foreign Affairs
and International Trade. 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.

    Investor Relations

    Analyst and investor relations calls should be addressed to Ms. Grimie
Villarreal, 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.

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

    %SEDAR: 00001737E




For further information:

For further information: Ms. Grimie Villarreal, Corporate Investor
Relations, at (954) 846-8222

Organization Profile

CERAMIC PROTECTION CORPORATION

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