Protective Products of America, Inc. Announces Bridge Buy with the Marines and Amended Credit Agreement with CIBC



    Symbol: CEP (transitioning to PPA) August 7, 2008
    Exchange: TSX

    SUNRISE, FL, Aug. 7 /CNW/ - Protective Products of America, Inc. ("PPA"),
a leading manufacturer and distributor of advanced products in ballistics
protection, is pleased to report that the U.S. Marine Corps ("USMC") has
confirmed that it intends to enter into an agreement for a "Bridge Buy" for
Modular Tactical Vests ("MTV") for a procurement amounting to approximately
USD$17 million. Furthermore, PPA anticipates additional USMC orders for
sustainment, or replacement, parts associated with the MTV in the near future.
    The Company is also announcing that it has successfully amended its
credit agreement with Canadian Imperial Bank of Commerce effective as of
July 31, 2008. The amending agreement extends the maturity date of the
Company's operating line of credit to August 29, 2008. The Company continues
to negotiate with potential lenders and anticipates that it will refinance its
current credit facility in advance of the amended date of maturity.

    Business of the Company

    Protective Products of America, Inc. ("PPA"), formerly known as Ceramic
Protection Corporation, is headquartered in Sunrise, Florida, with production
facilities in Newark, Delaware and Granite Falls, North Carolina. The Company,
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
Company's product portfolio includes lightweight ceramic armor for vehicles
and military personnel, composite based products and concealable soft body
armor 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 can withstand extremely high velocity
ballistics, combine hardness with light weight characteristics, are highly
resistant to corrosion and wear, and have low friction characteristics.
Management is of the opinion that the Company is an acknowledged industry
leader in the design and manufacture of high performance and high quality
products used for ballistic protection. Protective Products International
Corp, a wholly owned subsidiary of PPA, is an ISO 9001:2000 certified
manufacturer. Furthermore, PPA is one of a very few companies capable of
providing customers with an integrated personnel armoring 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.
    PPA depends on reliable supplies of high quality source materials used in
the manufacture of armor 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 PPA. 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 Company's December 31, 2007 Annual Report dated
March 31, 2008, and the Company's Annual Information Form dated March 31,
2008. These documents are available on SEDAR (www.SEDAR.com).
    In light of certain sensitive aspects in regard to customers and
products, PPA 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 armor
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
Del Valle, Corporate Investor Relations, at (954) 846-8222. Interested parties
are also referred to the PPA's website www.cerpro.com for further information
about PPA, its products and other recent announcements.

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

    Sunrise, Florida, USA
    August 7, 2008
    

    %SEDAR: 00001737E




For further information:

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

Organization Profile

CERAMIC PROTECTION CORPORATION

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PROTECTIVE PRODUCTS OF AMERICA, INC.

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