Ceramic Protection Corporation Announces Sale of Calgary Building and Amendment of Loan Agreements



    Symbol: CEP
    Exchange: TSX

    SUNRISE, FL, Dec. 31 /CNW/ - Ceramic Protection Corporation ("CEP" or the
"Corporation"), a leading manufacturer and distributor of advanced ballistic
protective products, is pleased to announce that the sale of its Calgary
building has been completed and net proceeds of approximately CAD $7.1 million
were used as a permanent reduction of term bank debt. The sale will result in
a gain before tax of approximately CAD $3.7 million in the fourth quarter of
2007. The Corporation is also pleased to announce that it has received
notification from its Canadian banker that the existing terms of its credit
agreement are to be amended including the modification of the maturity date of
its credit facility and term loan from December 31, 2007 to March 31, 2008.

    Business of the Corporation

    Ceramic Protection 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. Steve Giordanella                Mr. Larry Moeller
    Chief Executive Officer              Chairman
    
    %SEDAR: 00001737E




For further information:

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

Organization Profile

CERAMIC PROTECTION CORPORATION

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