JACKSONVILLE, Fla., July 10 /PRNewswire-FirstCall/ -- Armor Holdings, Inc.
(NYSE: AH), a leading manufacturer and distributor of security products,
tactical wheeled vehicles, and vehicle armor systems serving military, law
enforcement, homeland security and commercial markets, announced today that it
has acquired Integrated Textile Systems, Inc. ("ITS"), a Monroe, North
Carolina-based manufacturer of the high-strength material, Tensylon(TM).
Tensylon(TM), derived from an ultra-high molecular weight polyethylene
polymer, has a wide variety of applications, including advanced fiber
composites for use in ballistic products. The Tensylon high performance fiber
or tape can be processed into any number of specialty tailored composites,
depending on the unique application. This acquisition will allow Armor
Holdings to develop complete solutions for emerging blast and ballistic
threats by starting with the base material.
While the terms of the acquisition were not disclosed, Armor Holdings
plans to make capital investments in excess of $12.0 million over the next two
years to significantly increase its Tensylon(TM) capacity, which it expects to
utilize largely in force protection products and systems. The Company's
application development phases are largely complete and management plans to
qualify Tensylon(TM) into a variety of Armor Holdings' programs including,
among others, vehicle armoring applications which are currently underway. The
specific terms of the transaction were not disclosed and while the acquisition
is not expected to have an immediate material impact on the Company's 2006
financial outlook, the Company does believe that Tensylon will have a
meaningful financial impact on its performance over the next five years.
Robert R. Schiller, President and Chief Operating Officer of Armor
Holdings, commented, "We are very excited to acquire core technology for our
markets and to gain control over a versatile, low-cost, high-performance
ballistic material. This acquisition underscores the importance of our long
term research and development commitment and resulted directly from our
efforts to centralize our R&D function under a Chief Technology Officer. While
ITS is still in its development stages, we expect it to meaningfully expand
our product offering by providing us control over a core ballistic technology
with unique properties. We also expect to significantly expand our Tensylon
capacity and to utilize this material as a complementary solution with other
ballistic materials we currently procure though key suppliers."
Dr. Tony Russell, Chief Technology Officer of Armor Holdings, commented,
"Tensylon has the capability to be a significant new material in the
survivability industry. The Tensylon manufacturing process is much cleaner
than the manufacture of other ballistic fibers, and Tensylon's low-cost nature
could provide Armor Holdings with an important competitive advantage in
producing new, advanced, light-weight vehicle armoring solutions. Similar
advantages could also be realized in the future development of soldier
equipage solutions."
About Armor Holdings, Inc.
Armor Holdings, Inc. (NYSE:AH) is a leading manufacturer and distributor
of military vehicles, vehicle armor systems and life safety and survivability
systems serving military, law enforcement, homeland security and commercial
markets Additional information can be found at http://www.armorholdings.com.
Certain matters discussed in this press release constitute forward-looking
statements that involve risks and uncertainties that could cause actual
results to differ materially from those projected. The Company may use words
such as "anticipates," "believes," "plans," "expects," "intends," "future,"
and similar expressions to identify forward-looking statements. These risks
and uncertainties are described in the Company's filings with the Securities
and Exchange Commission, including the Company's Registration Statement on
Form S-3, its 2005 Form 10-K and most recently filed Forms10-Q and 8-K.
SOURCE Armor Holdings, Inc.
CONTACT: Robert R. Schiller, President & Chief Operating Officer, Armor
Holdings, Inc., +1-904-741-5400;
Media, Michael Fox, President, Corporate
Communications, +1-203-682-8218, mfox@icrinc.com,
Investor Relations, James R.
Palczynski, Principal, +1-203-682-8229, jp@icrinc.com,
both of Integrated
Corporate Relations, Inc.
