Pacific Safety Products Inc. Reports Fourth Quarter Fiscal 2013 and Year End Fiscal 2013 Financial Results

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 and year
ended June 30, 2013.


Highlights:



--  The Company reported a net loss for the fourth quarter of $0.02 million
    compared to net income of $0.3 million during the fourth quarter of the
    prior year. 
    
--  Revenues for the year were $11.7 million, a decrease of $5.0 million or
    30.1% as compared to the prior year. 
    
--  Gross margin as a percentage of revenues was 24.8%, which was a decrease
    over gross margin of 28.8% during the prior year. 
    
--  Expenses were $3.3 million, a decrease of $1.6 million or 31.5% as
    compared to the prior year. 
    
--  Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization
    ("Adjusted EBITDA") was a Loss of $0.3 million compared to an Adjusted
    EBITDA gain of $0.2 million during the prior year. 
    
--  The Company has removed the "going concern" note disclosure from its
    financial statements, which reflects its current performance as being
    able to manage its liquidity and debt requirements. 



"Several factors impacted our ability to normalize revenue and grow our gross
margin in fiscal 2013. In the US, our prospects were shaken by our two failed
corporate initiatives in 2012, and in addition PSP suffered as a result of
certain contracts expiring and delayed retendering resulting in fewer sales
materializing. In Canada, while we have not experienced competitive losses, the
timing of anticipated customer orders has not matched our original
expectations," remarked CEO, Terry Vaudry. "That all being said, our Canadian
brand remains strong and we maintain a dominant position in the marketplace. Our
focus over the last year in decreasing our operations and infrastructure costs,
while strategically investing in product development, has us extremely well
positioned for fiscal 2014."


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 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 Company's positioning
for fiscal 2014. 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, the uncertainty associated with the
outcome of research and development of new products, including regulatory
approval and market acceptance, 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.


Note on Adjusted EBITDA: Adjusted EBITDA consists of earnings before interest
expense, income taxes, share-based compensation, depreciation and 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: 
Pacific Safety Products Inc.
Terry Vaudry
Chief Executive Officer
[phone]
www.pacsafety.com