Protective Products of America, Inc. Announces Cost Reductions

    SUNRISE, FL, Jan. 8 /CNW/ - Protective Products of America, Inc.
(PPA:TSX), a leading manufacturer and distributor of advanced products in
ballistics protection, today announced that it has reduced its workforce by
approximately 25%, the majority of which are contract workers and can be
reduced and added based on business needs. Management has been working
diligently to remove excess operating expense from the Company's overhead in
order to better align the cost base with the needs of the Company as well as
in response to the extension of the proposal acceptance period for the U.S.
Army's Improved Outer Tactical Vest ("IOTV") Program.
    Stephen Giordanella, Chief Executive Officer, said, "Protective Products
of America has a highly flexible business model, enabling us to make rapid
reductions to the workforce by eliminating contract positions, and thereby
lowering our overhead expenses. With the extension of the U.S. Army's IOTV
approval process, we made the prudent business decision to temporarily reduce
our workforce, while we wait for the IOTV opportunity to materialize. We are
confident that we can quickly ramp up to meet demand once these contracts are
    Mr. Giordanella continued, "Over the last couple of years we have taken
numerous actions to turn the Company around, and we are very proud of the
progress we have made. This action is consistent with management's philosophy
of running the business, which is to take advantage of every opportunity to
cut costs and focus on the future growth of the Company."

    About Protective Products of America, Inc.

    Protective Products of America, Inc. ("PPA"), formerly known as Ceramic
Protection Corporation, is headquartered in Sunrise, Florida, with
manufacturing facilities in Sunrise, Florida 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 concealable soft
body armor products for law enforcement and the Modular Tactical Vest ("MTV"),
a ballistic system for military personnel.
    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
    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 law enforcement and the military.

    Safe Harbor Language

    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 (
    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.

    %SEDAR: 00001737E

For further information:

For further information: Ms. Grimie Del Valle, Company Contact,
Protective Products of America, Inc., (954) 846-8222,; Ms. Shelley Young, Vice President, The Piacente
Group, Inc., Investor Relations, (212) 481-2050,

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