Protective Products of America Provides Update on Credit Facility

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Tue Jun 30, 2009 5:16pm EDT

SUNRISE, FL, June 30 /PRNewswire-FirstCall/ - Protective Products of America,
Inc. (PPA:TSX), a leading manufacturer and distributor of advanced products in
ballistics protection, today announced that it is in negotiations to extend
its Forbearance Agreement with Canadian Imperial Bank of Commerce (CIBC) for
its primary operating line of credit by up to four months. As of March 31,
2009, PPA had $5.1 million of debt outstanding under the line of credit which
is expected to be extended to October 31, 2009.
"We believe that we maintain a good relationship with CIBC and we are working
to secure this forbearance extension given the impact of the economic slowdown
on our business," said Brian L. Stafford, Acting Chief Executive Officer of
PPA. "Such an extension will give us the benefit of additional time and a
better liquidity position from which to execute on our business strategies and
strategic opportunities."

About Protective Products of America, Inc.

Protective Products of America, Inc. ("PPA"), formerly known as Ceramic
Protection Corporation, is headquartered in Sunrise, Florida, with
manufacturing facilities in Sunrise, Florida and Granite Falls, North
Carolina. The Company, together with its subsidiaries, is engaged in the
design, manufacture and marketing of advanced products used to provide
ballistic protection for personnel and vehicles in the military and law
enforcement markets. The Company's product portfolio includes concealable soft
body armor products for law enforcement and the Modular Tactical Vest ("MTV"),
a ballistic system for military personnel. Visit
www.protectiveproductsofamerica.com for more company information.
Management is of the opinion that the Company is a leader in the design and
manufacture of high performance and high quality products used for ballistic
protection. Protective Products International Corp, a wholly owned subsidiary
of PPA, is an ISO 9001:2000 certified manufacturer. Furthermore, PPA is
capable of providing customers with an integrated personnel armoring system of
ceramic plates, soft ballistic material and vests for law enforcement and the
military.

Safe Harbor Language

This release may contain forward-looking statements including expectations of
future sales, cash flow, and earnings. These statements are based on current
expectations that involve a number of risks and uncertainties that could cause
actual results to differ from those anticipated. These risks include, but are
not limited to, uncertainties associated with the defense industry, commodity
prices, exchange rate fluctuations, and risks resulting from potential delays,
appeals or changes related to government orders in the defense sector.
PPA depends on reliable supplies of high quality source materials used in the
manufacture of armor products, including aramid fabrics and polyethylene
materials, and works actively with key suppliers to ensure that requirements
and demands for these materials are anticipated and properly met. The
foregoing is not exhaustive and other risks are detailed from time to time in
other disclosure filings of PPA. Should one or more of these risks or
uncertainties materialize, or should stated assumptions underlying the forward
looking statements prove incorrect, actual results may vary materially from
those described herein as anticipated, believed, estimated or expected. The
reader is also referred to other uncertainties and risks discussed in detail
in the MD&A section of the Company's December 31, 2008 Annual Report dated
April 6, 2009, the Company's Annual Information Form dated March 31, 2009 and
the Company's Form 10 Registration Statement filed April 10, 2009 and amended
on May 12, 2009. These documents are available on www.SEDAR.com and
www.sec.gov.
In light of certain sensitive aspects in regard to customers and products, PPA
may choose not to disclose all information related to the purchasers of its
products, such as government agencies, countries or other end users. Products
manufactured for export in the United States must first be approved for export
by the appropriate U.S. government agencies. Other armor sales may be made to
recognized domestic agencies such as the military and those involved in local,
provincial, or national law enforcement and homeland security matters.

SOURCE  Protective Products of America, Inc.

Kristen McNally, The Piacente Group, Inc., Investor Relations, (212) 481-2050
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