Big contract news today
Pacific Safety Products Inc. Announces Advance Notice on Canadian Government Contract Extension and U.S. Subsidiary Milestones
Friday January 26, 9:00 am ET
KELOWNA, BRITISH COLUMBIA--(CCNMatthews - Jan. 26, 2007) - Pacific Safety Products Inc. (TSX VENTURE:PSP - News; "PSP" or "the Company") announced today several new business developments, including the advance notice of the exercise of a contract option for the Canadian Department of Public Works and Government Services (PWGSC), and market milestones attained by the Company's U.S. Subsidiary, Sentry Armor Systems.
Exercise of PWGSC Options. The Company has received advance notice from the Canadian Department of Public Works and Government Services (PWGSC) that in accordance with its current contract with PSP, certain options will be exercised within the next 30 days for the production of up to 10,000 Horizon One Chemical Warfare Protective Coveralls. The anticipated value of this option is estimated to be in the order of C$5M.
David Scott, PSP CEO, said the Company is pleased by the production extension. "This advance notice indicates we have a satisfied customer in the PWGSC. When confirmed, this order will form part of our platform activities for fiscal year 2008, and allow PSP to plan for the continued expansion of our production base."
PWGSC awarded PSP the initial Contract in August, 2004. The Coveralls are designed to protect members of the Canadian Forces from toxicological agent threats that might be encountered while on duty.
U.S. Market Activity. In addition, Sentry Armor Systems ("Sentry Armor"), PSP's U.S. subsidiary, has announced several milestones in U.S. market development. Sentry Armor is now an Approved Vendor by the State of Pennsylvania and the State of Mississippi on their respective armor supply contracts. The company has also recently won orders from the city of Knoxville, Tennessee and the U.S. Navy for armor protection products.
Added Mr. Scott, "We are happy to announce that Sentry Armor's production facility in Dover, Tennessee is increasing capacity, and now employs fifty individuals." This facility has also recently achieved its ISO 9001-2000 system certification, attaining external accreditation for the quality standards built into production processes.
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