Defense Industries International Reports First Quarter 2008 Financial Results

ASHKELON, Israel--(Business Wire)--
Defense Industries International, Inc. (OTCBB:DFNS), a leading
manufacturer and global provider of personal military and civilian
protective equipment and supplies, announced financial results for the
first quarter ended March 31, 2008.

Net revenues for the first quarter reached $3,125,302 compared
with $3,914,572 in the first quarter of 2007.

Total sales to the local market reached approximately $2,246,219
in the first quarter of 2008, compared with sales of approximately
$2,422,411 in the first quarter of 2007.

Gross profit for the first quarter of 2008 was $743,144 compared
to $1,288,167 for the first quarter of 2007. The decrease in gross
profit is principally attributable to the decrease in sales.

Selling expenses for the first quarter of 2008 decreased to
$157,144 from $239,765 in the first quarter of 2007. General and
administrative expenses for the first quarter of 2008 increased to
$695,469 from $653,658 for the first quarter of 2007.

On February 18, 2008, the Company's subsidiaries, Export Erez
Ltd., Mayotex Ltd. and Achidatex Nazareth Elite (1997) Ltd., signed
definitive agreements with SELA Agency, a government agency,
established pursuant to the Evacuation Compensation Law, for
compensation of approximately $6 million, net of advanced payments of
approximately $523,000 received by the Company during 2007 with
respect to their evacuation from the Erez Industrial Zone. The net
compensation payments, in the amount of $4,681,838 was recognized as
an extraordinary gain, net of 5% related taxes and associated costs,
during the first quarter of 2008.

Net income for the first quarter of 2008 reached $4,138,203 as
compared to net income of $403,910 for the first quarter of 2007.

Commenting on the results, Joseph Postbinder, CEO of Defense
Industries International, Inc. said:

"Our results for the quarter reflect both our strength in the
domestic military market as well as our global reach. The decrease in
revenues in this quarter compared to the same period in 2007, is due
to a slow start in the MOD's budget utilization compared to the
exceptionally high demand for our products from the Israeli Defense
Ministry in the 2007 period, due to the political situation in Israel
at the time. Our strong cash position, and cash equivalents of $3.9
million strongly position us for future growth. We remain keenly aware
of the fluctuations in our revenue stream and continue to manage the
Company's performance on an annual basis rather than on a quarter to
quarter basis. Our annual results for 2007 reflect a 82%
year-over-year increase in revenues, the result of growth in all of
the Company's segments.

"Our sales and marketing efforts are already paying off, as we are
receiving new orders from new significant customers world-wide. As we
announced a few weeks ago, we have recently received a $4.5 million
order from the Israeli Ministry of Defense. We are continuing to
witness increased demand for our personal military protective
equipment from the Israeli Ministry of Defense, whose orders
demonstrates their confidence in our products.

"With a strong cash position, a strong pipeline, a broad customer
base and leading products, I believe that we are well positioned to
leverage opportunities in our markets."

About Defense Industries International, Inc.

Defense Industries International, Inc. is a leading manufacturer
and global provider of personal military and civilian protective
equipment and supplies. Defense Industries' main products include body
armor, bomb disposal suits and bullet-resistant vests and jackets;
ballistic wall covers, ceramic armor plates and lightweight armor
UHMW-PE plates; personal military equipment, battle pouch units and
combat harness units; dry storage units, liquid logistics, tents and
vehicle covers; winter suits, sleeping bags and backpacks. The
Company's manufacturing facilities meet American EQNET and
international ISO 9001 standards. The Company has three principal
subsidiaries, Export Erez Ltd., Achidatex Nazareth Elite ltd. and Owen
Mills in the USA. For additional information, please visit the
Company's web site at www.defense-industries.com

Safe Harbor Statement

This press release contains forward-looking statements as defined
in the Private Securities Litigation Reform Act of 1995. Certain
statements contained in this press release are "forward-looking
statements" within the meaning of applicable federal securities laws,
including, without limitation, anything relating or referring to
future financial results and plans for future business development
activities, and are thus prospective. Forward-looking statements are
inherently subject to risks and uncertainties some of which cannot be
predicted or quantified based on current expectations. Such risks and
uncertainties include, without limitation, the risks and uncertainties
set forth from time to time in reports filed by the Company with the
Securities and Exchange Commission. Although the Company believes that
the expectations reflected in such forward-looking statements are
reasonable, it can give no assurance that such expectations will prove
to have been correct. Consequently, future events and actual results
could differ materially from those set forth in, contemplated by, or
underlying the forward-looking statements contained herein. The
Company undertakes no obligation to publicly release updates to these
forward-looking statements made to reflect new events or circumstances
after the date hereof. Neither the Company nor its agents assume
responsibility for the accuracy and completeness of the
forward-looking statements.

Defense Industries International, Inc.
Investor Relations
Ayelet Shaked Shiloni, 1-866-44-786-33
ayeletshi@yahoo.com

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