Force Protection, Inc. Announces Unaudited First Quarter 2009 Results

Reports Q1 2009 Net Sales of $184.7 million, Diluted EPS of $0.11

End Q1 2009 with Cash Balance of $119.8 million
LADSON, S.C.--(Business Wire)--
Force Protection, Inc. (NASDAQ: FRPT), a leading survivability solutions
provider, today reported net income of $7.4 million, or $0.11 per diluted share
in the first quarter of 2009 compared with $7.0 million or $0.10 per diluted
share in the first quarter of 2008. Operating income in the first quarter of
2009 increased 6% to $11.4 million compared with operating income of $10.8
million in the first quarter of 2008.

In the first quarter of 2009, the Company reported net sales of $184.7 million
versus $403.0 million in the first quarter of 2008. Net sales in the first
quarter of 2008 included $196.4 million of pass-through sales from General
Dynamics Land Systems. There were no vehicle pass-through sales from General
Dynamics Land Systems in the first quarter of 2009.

Michael Moody, Chairman and Chief Executive Officer of Force Protection, Inc.,
said, "Over the course of the first quarter, we made significant progress in
transforming our business. Service and support revenues are an increasingly
strong part of our business. The first quarter of 2009 was a quarter without a
significant number of MRAP vehicle sales, and we are reasonably satisfied with
improvements in the gross margins and operating results we were able to
generate. These improvements were realized despite the significant added expense
in the quarter for the 2006 re-audit work."

The Company`s cash balance rose to $119.8 million as of the quarter ended March
31, 2009, from $111.0 million as of the year ended December 31, 2008. Operating
activity provided net cash of $14.2 million in the first quarter of 2009
compared with $3.1 million in the first quarter of 2008. Inventories as of the
quarter ended March 31, 2009 increased to $100.5 million from $88.5 million as
of December 31, 2008. Accounts receivable increased $13.9 million or 10% as of
the quarter ended March 31, 2009 compared to the 2008 year-end balance.

Mr. Moody continued, "Our recent contract awards for Cougar independent
suspension upgrades, a continued strong trend toward sustainment, and the
initial shipments of our ForceArmor upgrades all confirm demand for Force
Protection to diversify to a broader range of products and services. We are also
excited to have received an award for the Wolfhound tactical support vehicle
from the United Kingdom Ministry of Defence. The Wolfhound vehicle was created
through Force Protection`s understanding of our customer`s requirements, our
competency to rapidly prototype and the ability to leverage strong industry
partnerships."

He further commented, "We have also been very pleased to have recently
strengthened our leadership with the naming of Randy Hutcherson to the position
of Executive Vice President, Programs, Global Sales and Business Development and
MGen Jim Grazioplene as Executive Vice President, Total Life Cycle Support. We
believe that their leadership and guidance will prove invaluable as we further
diversify our business and continue to improve and deepen our operational
capabilities and relationships with our customers. We are pleased and excited to
have been recently down-selected for the ongoing, intense competition for the
M-ATV program. While we are positioned to execute well and fulfill customer
needs in the event we are selected for a production order, our business plan is
not dependent on that outcome."

Mr. Moody concluded, "Our business is transforming. We believe that the
combination of strong leadership, a dedication to partnerships, and a commitment
to innovation will set us apart as the leading developer and provider of
survivability solutions creating significant and sustainable value for our
customers and our shareholders."

About Force Protection, Inc.

Force Protection, Inc. is a leading American designer, developer and
manufacturer of survivability solutions, predominantly blast- and
ballistic-protected wheeled vehicles currently deployed by the U.S. military and
its allies to support armed forces and security personnel in conflict zones. The
Company`s specialty vehicles, the Cougar, the Buffalo and the Cheetah, are
designed specifically for reconnaissance and urban operations and to protect
their occupants from landmines, hostile fire, and improvised explosive devices
(IEDs, commonly referred to as roadside bombs). The Company also is the
developer and manufacturer of ForceArmor, an armor package providing superior
protection against explosively formed projectiles (EFPs), now available for a
wide range of tactical-wheeled vehicles. The Company is one of the original
developers and primary providers of vehicles for the U.S. military`s Mine
Resistant Ambush Protected, or MRAP, vehicle program. For more information on
Force Protection and its vehicles, visit www.forceprotection.net.

Safe Harbor Statement

This press release contains forward looking statements that are not historical
facts, including statements about our beliefs and expectations. These statements
are based on beliefs and assumptions of Force Protection`s management, and on
information currently available to management. These forward looking statements
include, among other things: the growth and demand for Force Protection`s
vehicles, including the Tactical Supply Vehicle, the ForceArmor kits and the
M-ATV Cheetahs; the rate at which the Company will be able to produce these
vehicles and products; the Company`s ability to develop new technologies and
products, and the effectiveness of these technologies and products; the
Company`s execution of its business strategy and strategic transformation,
including ability to right-size its manufacturing base and diversify the range
of its product offerings and utilize world-class partners; and the Company`s
expected financial and operating results, including its revenues and cash flow,
for future periods. Forward-looking statements speak only as of the date they
are made, and the Company undertakes no obligation to update any of them
publicly in light of new information or future events. A number of important
factors could cause actual results to differ materially from those contained in
any forward-looking statements. Examples of these factors include, but are not
limited to, ability to effectively manage the risks in the Company`s business;
the ability to develop new technologies and products and the acceptance of these
technologies and products; the ability to obtain new orders for its vehicles and
products; the Company`s ability to identify and remedy its internal control
weaknesses and deficiencies, and other risk factors and cautionary statements
listed in the Company`s periodic reports filed with the Securities and Exchange
Commission, including the risks set forth in the Company`s Annual Report on Form
10-K for the year ended December 31, 2008, as updated in the Quarterly Report on
Form 10-Q for the period ended March 31, 2009.

Force Protection, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(Unaudited)

As of March 31, As of December 31,
2009 2008
(In Thousands)
Assets
Current assets:
Cash and cash equivalents $ 119,830 $ 111,001
Accounts receivable, net 152,377 138,449
Inventories 100,508 88,502
Deferred income tax assets 13,481 15,572
Prepaid income taxes 10,324 -
Other current assets 2,704 2,417
Total current assets 399,224 355,941
Property and equipment, net 61,589 61,429
Investment in joint venture 1,925 -
Intangible assets, net 503 654
Total assets $ 463,241 $ 418,024

Liabilities and Shareholders` Equity
Current liabilities:
Accounts payable $ 55,553 $ 47,115
Due to United States government 58,418 39,015
Advance payments on contracts 43,734 29,504
Other current liabilities 15,149 20,783
Total current liabilities 172,854 136,417
Deferred income tax liabilities 4,352 3,141
Other long-term liabilities - 139
177,206 139,697
Commitments and contingencies

Shareholders` equity:
Common stock 69 68
Additional paid-in capital 257,270 256,939
Retained earnings 28,696 21,320
Total shareholders` equity 286,035 278,327
Total liabilities and shareholders` equity $ 463,241 $ 418,024

Force Protection, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(Unaudited)

For the three months ended
March 31,
2009 2008
(In Thousands, Except Per Share Data)
Net sales $ 184,734 $ 403,047
Cost of sales 147,832 364,716
Gross profit 36,902 38,331
General and administrative expenses 20,851 24,625
Research and development expenses 4,605 2,860
Operating income 11,446 10,846
Other income (expense), net (62 ) 511
Interest expense (136 ) (125 )
Income before income tax expense 11,248 11,232
Income tax expense (3,872 ) (4,195 )
Net income 7,376 7,037
Earnings per common share:
Basic $ 0.11 $ 0.10
Diluted $ 0.11 $ 0.10
Weighted average common shares outstanding:
Basic 68,408 68,297
Diluted 68,755 68,363

Force Protection, Inc.
Tommy Pruitt, 843-574-3866
Senior Communications Director
or
Investor Relations:
ICR Inc.
James Palczynski, 203-682-8229
Principal and Director

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