Ceramic Protection Corporation Signs Letter Of Intent To Acquire Composix Co.



    Symbol: CEP
    Exchange: TSX

    CALGARY, April 5 /CNW/ - Ceramic Protection Corporation ("CPC" or "the
Corporation"), a leading manufacturer and distributor of advanced ballistic
protective products, announced today that it has recently signed a non-binding
Letter of Intent to acquire Composix Co. of Newark, Ohio. The transaction is
subject to, among other things, the negotiation and signing of a Definitive
Agreement. Other terms were not disclosed.
    Established in 1987, Composix, along with its sister companies, Ohio
Armor and Force One, LLC, has produced a variety of products in markets
ranging from military and commercial armor, vehicle and aircraft armor
protection to personnel body armor. As a specialty OEM (Original Equipment
Manufacturer) producer of armor products, machined metallic parts and
specialty products, Composix capabilities range from developing prototype
parts and processes to the production of finished products. Composix products
include custom fabricated composite parts, armor products, bullet-resistant
vests, protective plates, Aramid-Shield(TM) armor materials, military
composites, lightweight military vehicle components, composite fuel tanks and
coated yarns.
    "This accretive transaction would, if completed, continue our strategy of
core market acquisitions, and would incrementally add to earnings per share in
2007," said Mr. Steve Giordanella, Chief Executive Officer. "We admire
Composix, its people and its unique capabilities and we look forward to
finalizing the Definitive Purchase Agreement and bringing Composix to the CPC
family. We also look forward to leveraging each companies' talents,
capabilities and resources. We believe the Composix product lines would
complement our current product portfolio, contribute significantly to our
product mix for our customers, and we would expect Composix to integrate
directly into our distribution channels."

    Business of the Corporation

    Ceramic Protection Corporation, headquartered in Calgary, Alberta,
Canada, with offices in Newark, Delaware and Sunrise, Florida, USA, is an
ISO 9001:2000 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. The Calgary plant manufactures alumina ceramic and fiber reinforced
composites used for ballistic protection of personnel and vehicles. 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 wide 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 manufacturing of wear management and 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 be approved for export by the appropriate 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, at (954) 846-8222

Organization Profile

CERAMIC PROTECTION CORPORATION

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