Pacific Safety Products Inc. Reports First Quarter of Fiscal 2014 and Announces Stock Option Grant

Pacific Safety Products Inc. (TSX VENTURE:PSP) ("PSP" or the "Company"), a
leading North American manufacturer of advanced armour and personal protection
solutions, today reported financial results for the three month period ended
September 30, 2013.


Highlights:



--  The Company reported net income for the first quarter of $0.2 million
    compared to a net loss of $0.5 million during the first quarter of the
    prior year. 
    
--  Revenues for the first quarter were $3.8 million, an increase of 35.7%
    compared to revenues of $2.8 million during the first quarter of fiscal
    2013.  
    
--  Gross margin as a percentage of revenues for the first quarter was 28.4%
    compared to 20.1% for the first quarter of the prior year.  
    
--  Expenses for the first quarter were $0.9 million compared to $1.0
    million for the first quarter of the prior year, a decrease of 14.8%. 
    
--  Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization
    ("Adjusted EBITDA")(1) was $0.2 million compared to the Adjusted EBITDA
    loss of $0.4 million during the first quarter of the prior year. 



"PSP continued to identify and remove costs from its operations during its first
quarter", says CEO, Terry Vaudry. "We remain committed to rightsizing the
company while continuing to invest in our products and customers ahead of what
we believe will be a healthy business environment in calendar year 2014".


Grant of Stock Options 

The Company has granted an aggregate of 2,725,000 to certain directors, officers
and employees of the Company, including to Mr. Fraser Campbell and Mr. Ken
Hight, Directors of the Company, Mr. Terry Vaudry, the Chief Executive Officer
and a Director of the Company and Mr. Rudy Witlox, Chief Financial Officer. The
stock options are exercisable at a price of $0.11 and expire five years from the
date of grant.  The stock options vest immediately upon grant.


About PSP: 

The mission statement of Pacific Safety Products Inc. is ...we bring everyday
heroes home safely(R). PSP is an established industry leader in the production,
distribution and sale of high-performance and high-quality safety products for
the defence and security market. These products include body armour to protect
against ballistic, stab and fragmentation threats, ballistic blankets to reduce
blast effects, tactical clothing, and protective products against chemical and
biological hazards. PSP is the largest body armour manufacturer in Canada,
directly supplying the Canadian Department of National Defence, Federal
Government Agencies and major Canadian law enforcement organizations. The
Company, through its U.S. subsidiary Sentry Armor Systems Inc., provides body
armour products under the GH Armor Systems(R) brand to U.S. based law
enforcement and private security firms. The Company also produces tactical
clothing. Pacific Safety Products is a reporting issuer in British Columbia,
Alberta and Ontario, Canada and publicly trades under the symbol PSP on the TSX
Venture Exchange. 


Forward-Looking Information: This news release contains certain statements which
may constitute "forward-looking information" within the meaning of applicable
securities laws. These statements relate to anticipated or assumed events or
results including, without limitation, with respect to the anticipated impact of
the steps being taken to align and size the Company's operations to current
North American business opportunities. The forward-looking information contained
herein is expressly qualified in its entirety by this cautionary statement.
Although the Company believes that the expectations conveyed by the
forward-looking information are reasonable based on information currently
available to it, these statements are based on management's expectations,
estimates and projections and involve a number of risks, uncertainties and
assumptions, both known and unknown. As a result, the results or events depicted
in these forward-looking statements may differ materially from actual results or
events. Many factors could cause results to differ materially from those stated
including, but not limited to the impact of price and product competition,
changes in general industry and market conditions, inability to successfully
plan and execute cost reduction and business improvement strategies, ability to
retain key staff, restrictions and covenants contained in credit agreements,
fluctuations in currency, exchange and interest rates and commodity prices,
ability to retain existing customer contracts, reliance on key customers, as
well as various other factors which are discussed in the Company's filings with
applicable securities regulatory authorities at www.sedar.com. Any
forward-looking statement speaks only as of the date of this news release and,
except as may be required by applicable securities laws, the Company disclaims
any intent or obligation to update any forward-looking statement, whether as a
result of new information, future events or results or otherwise.


(1) Adjusted EBITDA consists of earnings before interest expense, income taxes,
stock based compensation, amortization, foreign exchange, and other one-time
charges and gains. PSP believes Adjusted EBITDA is a useful measure in the
evaluation of performance. Adjusted EBITDA is not a recognized performance
measure under International Financial Reporting Standards ("IFRS") and does not
have a standardized meaning as prescribed by IFRS. Therefore, Adjusted EBITDA
may not be comparable to similar measures presented by other entities.


For complete condensed consolidated interim financial statements with notes and
management discussion and analysis, refer to SEDAR (www.sedar.com). 


Neither the TSX Venture Exchange nor its Regulation Services Provider (as that
term is defined in policies of the TSX Venture Exchange) accepts responsibility
for the adequacy or accuracy of this release.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Terry Vaudry
Chief Executive Officer
Pacific Safety Products Inc.
[phone]
www.pacsafety.com