Force Protection records substantial ’05 growth

LADSON, S.C.–(BUSINESS WIRE)–Jan. 12, 2006–Force Protection, Inc. (OTCBB:FRPT), the leading U.S. specialty armored vehicle manufacturer, recorded significant growth in contracts, vehicle deliveries, infrastructure, workforce, and production capacity during 2005, the company said today.

Force Protection’s Buffalo mine clearance and Cougar EOD and combat team transport vehicle series have been used by U.S. and Coalition forces in Iraq and Afghanistan for nearly three years. More than 90 vehicles are currently in use in active operations. That number is expected to more than double in the second quarter of 2006.

“The company has experienced another remarkable year,” noted CEO Gordon McGilton. “The expansion begun in 2003 has continued dramatically as we have addressed challenges associated with evolving from a small start-up organization to a higher-volume assembly line manufacturer.

“Based on the significant expansion of our workforce and our manufacturing infrastructure, we are confident in our ability to meet the blast protection needs of our armed forces as never before,” he said.

“Our most important measure of success, however, is the lives that are protected because of the technology incorporated into our vehicles. Despite heavy attacks, the most serious reported injury sustained to date by an occupant of our vehicles has been a broken wrist. We have a proven solution to the problem of explosive threats that include IEDs. This is recognized by military customers as evidenced by the rise in contracts awarded in the past twelve months.

“We look forward in 2006 to additional contract awards for each vehicle series and their associated spare parts. The market for vehicles that enable survivability like those made by Force Protection gives every indication of continued expansion. The company and its products are here for the long-term.”

Force Protection delivered more than 70 vehicles during 2005 alone, an increase of 500 percent from the previous year. Its workforce, which stood at 180 at the end of 2004, has increased to more than 300. Production capacity has also increased, with the company producing three vehicles per week, up from less than one vehicle per week a year ago.

The company’s total contract awards have also multiplied due in large part to a $92 million contract awarded by the Department of Defense for more than 120 Cougar Joint Rapid Response Vehicles for use by all branches of the U.S. military. The Buffalo also entered Marine Corps operations for the first time in 2005. An additional source of revenue for the company has emerged through its integrated logistics support (ILS) department. ILS is responsible for order fulfillment on spare parts, contract services and maintenance and training, as well as the deployment of Force Protection field service representatives.

“We have booked over $10 million in support services and parts in 2005,” said McGilton. “That segment of our business should grow substantially in 2006 as we support more vehicles deployed to the global war on terror.”

Force Protection has also produced a prototype vehicle, the Mine-protected Utility Vehicle/Rapid Deployable (MUV-R), as a lighter weight alternative to its current vehicle series.

“Our team has developed this additional vehicle for use in dangerous missions where greater mobility is of critical importance,” said McGilton. “The Department of Defense has seen and driven the MUV-R and has encouraged us to continue the development of this product. This would make three different weight classes of vehicles capable of serving an even greater range of roles for the military.”

“We’re moving forward. The foundation has been laid, and we continue to put in place the processes, procedures, and personnel needed to produce the world’s finest blast- and ballistic-protected vehicles that enable the highest levels of protection for troops in combat.”

For more information on Force Protection and its vehicles, go to www.forceprotection.net.

About Force Protection
Force Protection, Inc. manufactures ballistic- and mine-protected vehicles through its wholly owned subsidiary. These specialty vehicles are protected against landmines, hostile fire, and Improvised Explosive Devices (IEDs, commonly referred to as roadside bombs). Force Protection’s mine and ballistic protection technology is among the most advanced in the world. The vehicles are manufactured outside Charleston, S.C.

This release contains forward-looking statements, including, without limitation, statements concerning our business, future plans and objectives and the performance of our products. These forward-looking statements involve certain risks and uncertainties ultimately may not prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. Technical complications may arise that could prevent the prompt implementation of the strategic plan outlined above. The company cautions that these forward looking statements are further qualified by other factors including, but not limited to, those set forth in the company’s Form 10-KSB filing and other filings with the United States Securities and Exchange Commission (available at http://www.sec.gov). The company undertakes no obligation to publicly update or revise any statements in this release, whether as a result of new information, future events or otherwise, except as required by law.

Contacts:

Force Protection, Inc.
Investor Relations, 843-740-7015, Ext. 306
[email protected]
or
Policy Impact Strategic Communications
Jeff Child, 202-737-5339 (Media Contact)
[email protected]