When it comes to technology the hottest items on the market aren't just cell phones and personal computing appliances. In fact, some of the fastest sellers these days are security devices - and for good reason. The recent high profile focus on homeland security has prompted many individuals, companies, and government agencies to actively protect themselves from the threat of terrorism and other criminal offenses.

The Biggest Customer of All . . .

There is one mega-major customer that outspends everyone else when buying security related items - the US Government! That's just one of the reasons why Armor Holdings (AH) is a small company with a big future.

But of course "small" is a relative term when used to describe an international business. With over $365 Million in annual sales and $31 Million in pre-tax income, Armor Holdings isn't exactly a Mom & Pop outfit. They have operations on five continents, and a large number of federal military agencies - along with state and local government law enforcement agencies - rely on Armor's diverse family of subsidiaries for security products and services.

Among the Very Best . . .

A member of the S&P Smallcap 600 Index, Armor was featured on FORTUNE magazine's list of "America's 100 Fastest Growing Companies" in 1999 and 2000. For the past two years the relatively obscure security firm has been included on FORBES Magazine's list of the "200 Best Small Companies," and is currently ranked among the top 100 most profitable in the group.

As their name implies, Armor Holdings owns a number of companies that operate under three business segments:

~ The Aerospace & Defense Group
~ The Products Division
~ The Mobile Security Division

Business Segments

Aerospace & Defense

The evolving nature of the threat faced by the U.S. military has significantly increased the importance of quality force protection products for American soldiers and the vehicles in which they operate. With the Aerospace & Defense Group (A&D), Armor Holdings brings together an unparalleled combination of expertise in armored vehicles, vehicle armor kits, body armor, aircraft armor, seating systems, inflatable restraints and military police equipment.

The A&D Group blends the vehicle armor leadership of O'Gara-Hess & Eisenhardt and the survivability legacy of Simula with the product expertise of Armor Holdings companies American Body Armor, Break Free®, Hatch, Monadnock®, PORTAL Ladder(tm), PROTECH(tm), Safariland® and Defense Technologies/Federal Laboratories®. Together the A&D Group ensures that market demands for protective and security measures are met today and in the future.

Simula, Inc. is an industry-leading safety technology company that has served the defense industry since 1975, providing ground vehicle armor for the military; personnel protective equipment, including body armor, flotation devices, and parachutes; energy-absorbing seating systems and lightweight armor for aircraft; inflatable restraints for military aircraft; and other protective equipment and technologies. Simula's proven products protect military personnel in a variety of life- threatening or catastrophic situations. For more on Armor's latest acquisition go to http://www.simula.com/

Armor Holdings Products Division

Made up of twelve operating companies in eight geographic locations, this division of Armor manufactures many of the worlds most well- recognized brands of security products offered through a network of more than 500 distributors and agents internationally. The business began as American Body Armor & Equipment, Inc. (ABA) in 1996. Back then it was a $10 million revenue business producing body armor to protect law-enforcement and military personnel around the world. Through internal product development and the acquisition of complementary businesses, the Products Division has since grown to almost $200 million in revenue in 2003 and currently offers a diverse suite of high-quality branded products focused on law-enforcement and military personnel needs.

The risks in today's geopolitical climate call for products that help protect the lives of private citizens, law-enforcement officers and military personnel. Among other items, Armor's Products division makes bullet-resistant vests and flak jackets, along with tactical hard armor such as helmets and shields. They also manufacture non-lethal products like tear gas, Mace spray, and distraction grenades. Also included in their product line for law enforcement are safety holsters, batons, anti-riot products, and a variety of crime scene related equipment including narcotic identification kits.

The Armor Mobile Security Division

Eisenhardt (OGH&E) is one of the world's largest and most experienced passenger vehicle armoring companies. Launched through the acquisition of OGH&E in 2001, the division generated revenues of $157 million in 2003. Armor Holdings Mobile Security Division, through its Commercial Products division, armors a variety of vehicles, including limousines, sedans, sport utility vehicles and money transport vehicles to protect against varying degrees of ballistic and blast threats. Through its Military Products division, it is the prime contractor to the U.S. Military for the supply of armoring and blast protection or High Mobility Multi-purpose Wheeled Vehicles or HMMWVs.

Just recently Armor Holdings signed $50 Million in new contracts with the US Department of Defense to supply 1,500 hard-armoring kits for government "Humvee's" - or as they're known in most parts of the US - "Hummers."

The deal will be managed by Simula Corp, Armor's newly acquired subsidiary. Simula supplies human safety and survival systems to all branches of the U.S. military, with the primary objective of protecting soldiers in a variety of life-threatening and possibly catastrophic situations.

Having served the defense industry for almost three decades, Simula provides a line of personnel protective equipment that includes military body armor, energy absorbing seating systems, and lightweight armor for aircraft. In addition to the hard-armoring kits in the new contracts, Armor Holdings will also deliver 5200 bullet resistant windshields for the Hummers.

Growth Through Acquisition

In 1996 the Company initiated an aggressive strategy of acquiring leading brands in order to build market share and establish a global presence. Even today Armor Holdings pursues acquisition opportunities that achieve their strict operational and financial objectives.

On the operational side, transactions must complement and expand product lines, enhance distribution and service capabilities, increase its global presence and enable greater operational efficiencies.

On the financial side, transactions must be accretive to the Company's shareholders. Here are several of the many holdings that operate within the Armor network:

American Body Armor

Since founded in 1969, American Body Armor has continuously led the field in creating better ways to save lives. And as one of the country's oldest manufacturers of body armor, ABA remains committed to seeking the newest technologies to combat the ever-changing threats to law-enforcement, military and corrections personnel.

Backed by a major investment in research and development, ABA engineers and designers constantly explore innovative and creative ways to improve our products. Through a combination of advanced materials and manufacturing expertise, ABA offers the very finest products supported by the highest level of customer service.

"If it wasn't for the vest, I wouldn't be here - so I'm very thankful." Officer James Taylor, Jacksonville, Sheriff's office

To learn more bout this business, visit the new American Body Armor site at http://www.americanbodyarmor.com/

Armor Safety Products Company

Armor Safety Products Company offers a variety of products to meet the needs of the law enforcement, corrections and fire-rescue communities. These include the unique foldable QUIKSTEP Ladder™, which goes from briefcase size to fully extended in just five seconds.

Also available are Thermal-Air™ Hoods and Masks to keep a person's body core warm in winter. These products capture the warmth of exhaled breath with a patented heat exchange module for warming cold, inhaled breath. Thermal-Air™ keeps the body core temperature at a higher level, increasing the time you can comfortably spend outdoors.

Contact Armor Safety Products Company toll-free at (866) 700-4192

B-Square

B-Square manufactures and distributes aluminum and steel gun sight mounts, tools and accessories of the highest quality. The complete line of B-Square products is available to the law enforcement, military and sporting goods (hunting and target shooting) markets. For more information, check out the web site at http://www.b-square.com

Defense Technology / Federal Laboratories

Defense Technology/Federal Laboratories is dedicated to producing the safest and most reliable less-lethal solution products on the market. One of the facets that separates DT/FL from others in the industry is its commitment to product integrity, training and research. By placing a strong emphasis on product controls, DT/FL ensures it is providing a quality product to the marketplace and minimizes the potential for defects or workmanship errors.

The DT/FL line of Duty Aerosols, First Response specialty impact munitions, Crowd Management products and Tactical Deployment devices is designed to provide law enforcement and corrections personnel with proven tools to maximize safety and minimize injury.

For more information, visit Defense Technology's new web site at http://www.defense-technology.com/ or http://www.federallaboratories.com/

Evi-Paq

The newest member of Armor Forensics' stable of quality brand names, Evi-Paq specializes in manufacturing products for evidence collection and storage. Evi-Paq's flagship product when it began in 1981 was a paper bag roll for evidence storage. They quickly began developing and expanding the product line to encompass equipment and material needed by criminal investigators. The acquisition of Evi-Paq greatly strengthens Armor Forensics' commitment to excellence and innovation.

For more information, you can visit the web site at http://www.evipaq.com

Hatch

Another new member of the Armor Holdings Products Division family, Hatch is a leading supplier of high quality gloves and other protective gear serving the law enforcement, corrections, military homeland defense and commercial markets. The Hatch portfolio of products includes Friskmaster™ and X11™ lined cut-resistant gloves, Operator™ Tactical Gloves, Centurion™ and ExoTech™ disturbance control gear, and B.O.S.S. tactical eyewear.

To learn more, visit the Hatch Web site at http://www.hatch-corp.com/

Identicator

Identicator is a leading manufacturer and distributor of a complete line of paper based fingerprint identification products used by government and law enforcement agencies, as well as financial, retail, and security services to solve current and future identification issues. Identicator's products and systems deter fraud and produce positive verification/identification in a variety of applications.

For more details, you can access the new Identicator web site at http://www.identicatorinc.com/

Lightning Powder Company, Inc.

The Lightning Powder Company has been servicing domestic and international crime scene investigators since 1976. The firm manufactures and distributes a broad range of forensics products. In this group you'll find fingerprint powder and supplies, impression evidence and collection equipment, specialty magnifiers, photographic supplies, evidence packaging, safety supplies, along with text books and reference materials.

Access their website at http://www.redwop.com

Monadnock Lifetime Products, Inc.

Monadnock, a premier brand with established market share and name recognition worldwide, has been a leading manufacturer of batons for the law enforcement community since 1958. In addition to its fine line of batons, Monadnock is a leader in contemporary law enforcement education through its Monadnock Police Training Council. Here's the link to Monadnock - http://www.batons.com/batons.asp

PROTECH Armored Products

PROTECH is a world leader in hard armor manufacturing, offering everything from bullet-resistant vests and helmets to shields, armored vehicles, and other accessories. PROTECH's motto -"If it can be armored, we will find a way to do it." http://www.protecharmored.com/

Safariland

In April 1999, Armor Holdings acquired Safariland, a manufacturer and distributor of a variety of products for the law enforcement, military and sporting goods markets worldwide. Well known for its Safariland holster, Safariland's Duty Gear Division manufacturers holsters, belts and other components, such as magazine and handcuff cases, worn by police and military police personnel.

In addition, Safariland is a leading manufacturer of bullet resistant vests for law enforcement agents in the United States and abroad. Safariland is also an award-winning supplier of automotive accessories to the OEM market.

*Editors Note: Having lived near Myrtle Beach South Carolina several years ago, I was interested to find out about how one of Armor's products actually worked in the field. Here is a note from Horry County Police Officer Chris Arakas describing in his own words how a Safariland holster deterred a potentially dangerous life-threatening situation:

"On 8-17-97, 12:47 p.m., I responded to Belk department store at Briarcliff Mall in Myrtle Beach, South Carolina to investigate a shoplifting complaint with the suspect in custody.

Once on the scene, I spoke with security and observed the tape footage of the suspect, a 15 year old female juvenile, attempting to steal some cologne. Satisfied with the evidence presented, I took the juvenile into custody. I began the routine arrest with first handcuffing the suspect, and next, conducting a search of the suspect for any weapons. Finding no weapons, and with the suspect showing good attitude, I had a feeling of ease while l placed her in the rear of my vehicle.

While en route to jail with my 'routine' 15 year old female shoplifter she managed in four seconds to get out of my doubled locked hand-cuffs, grab my Glock 22, breaking the thumb snap and pulling up on my weapon with force. However, she was unsuccessful in getting control of my weapon due to the second retention feature on my Safariland 'Easy Draw Retention Holster' which my department wisely chose for its officers.

The experience taught me to always utilize a holster which has at least a dual retention and keep a survival attitude while you are policing." ~ Chris

To learn more about Safariland products, go to http://www.safariland.com/index.html

SPEEDFEED, Inc.

In April 2002, Armor Holdings Products Division acquired SPEEDFEED, Inc, incorporating this leading designer, manufacturer and marketer of quality synthetic firearm stocks into an already diverse line of law enforcement and sporting goods accessory products. Designed by expert competitive shooter Bill Davis, SPEEDFEED stocks and accessories are made with specially formulated polymers that are rugged, versatile and attractive. Impervious to chipping, cracking or swelling, even under the roughest environmental conditions, SPEEDFEED stocks are perfect for law enforcement and sport use.

You can find more about SPEEDFEED at http://www.speedfeedinc.com/

911EP®

911EP is the original creator of warning light systems using LED technology and the leader in LED light technology. The complete line of emergency warning lights is available to law enforcement and fire and safety professionals. 911EP's patented technology consumes 70% less energy than traditional strobe or halogen systems through the use of the vehicle's existing 12-volt system - no additional power supply is needed.

For more information, go to http://www.911ep.com/

Armor Products International Ltd

Established in 1937, Armor Products International Ltd manufactures a complete range of military clothing, body armor, industrial protective clothing and work wear garments. API is a United Kingdom MOD approved contractor and is accredited with the ISO 9002 approval.

N.I.K. Public Safety, Inc.

NIK® Public Safety is the leading manufacturer and distributor of portable narcotics identification kits used by law enforcement agencies worldwide. NIK also distributes patented disposable restraints, the Flex-cuf, Specimen Collection Kits, Evidence Collection Kits and Tamper Guard Evidence Tape.

Special Report Summary

Now is the time to invest in Armor Holdings . . .

Now that you know something about each of Armor Holdings' businesses, here are a few of the reasons we believe Armor Holdings is a company that you will want to own:

Investment Performance

We compared Armor's investment performance to all other publicly traded firms. We looked at a variety of different aspects, including Price strength, daily, weekly, and monthly price and volume performance. We also considered Armor's current price compared to its 52-week high. Armor placed in the top 2% of all stocks in the market. Out of over 50 stocks in the security and safety group, AH ranked the best.

Stock Fundamental Performance

We also compared Armor's most important fundamental data to over 9,500 other public companies, and then rated all of them on a scale of 1 to 100. Included in the calculations were considerations for profit margin, growth rate, and ROE - return on equity. We also measured how fast sales and earnings are growing in relation to all stocks traded on the NYSE, Nasdaq, and American Stock Exchange. From a fundamental perspective, AH ranked in the top 7% of all other companies.

Sector Price Performance

A major part of a stock's performance is usually directly related to sector strength. The security segment of the US stock market ranks in the top 1% of all sectors. In other words, the sector to which Armor belongs outperformed 99% of all other industry groups based on a variety of elements such as positive trend, price performance during the past six months, the number of stocks in the sector making new 52-week highs, and the amount of up-volume within the entire sector.

Sector Fundamental Performance

Strong sector fundamentals indicate there is a healthy environment for individual stocks to flourish within the group. Included in the assessment for this category are earnings growth rates over the past three years, the average EPS - Earnings Per Share - for the group, and the stability of profits within the sector. Overall, the Security Sector has better fundamentals than 81% of all other sectors in the market.

Sector Peer Comparison

When comparing AH to all the other members of the Security Sector, we looked closely at a variety of factors to see just how well Armor measured up to the rest of the group. To determine this we included several factors such as Armor's recent price performance, the stock's Alpha, and the amount of positive trading volume versus negative trading volume. After a complete review, AH was clearly first in its class of over 50 competitors.

Competition

Armor Holdings has a number of advantages over the rest of the field. For one, it provides a wide range of goods and services in a fragmented industry. One-stop shopping is important to many customers, and Armor can provide more variety than any other. Additionally, Armor's brand recognition gives it a strong edge - they are the premier name in bulletproof vests and in vehicle armoring around the globe.

Diversity

As the broad list of companies listed above indicates, Armor Holdings is a well-established enterprise with a wide range of security and defense related businesses. Shares of Armor Holdings provide investors with a broadly divergent position - in effect a portfolio of security companies within one stock.

With approximately 200 distributors in the US and about 150 international agents, the scope of Armor's diversity gives the company cross-selling opportunities as organizations reassess their needs in a potentially riskier world environment.

Technical Positioning

Armor has set several new closing highs recently. The price breakout above resistance near 30 on March 29th placed AH into "blue sky" territory, and now there is very little overhead technical resistance to hinder upward progress. As the chart below indicates, the breakout to new highs took place on extremely high buying volume - a confirming sign that the move has a healthy foundation of buyers.

DAILY CHART - Armor Holdings Inc. (Symbol: AH)

As the monthly chart below illustrates, AH is well positioned above previous highs set during the bullish price action between the second half of 2001 and early 2002. With a strong positive monthly trend in place, investors are likely to view any dips or pullbacks as buying opportunities.

MONTHLY CHART - Armor Holdings Inc. (Symbol: AH)

RightLine's analysis of Armor goes beyond its technical posture, business growth and earnings history. We've also considered other equally important aspects, such as the powerful supply and demand dynamics related to the high level of institutional ownership. With mutual funds and other managed-money firms holding 88% of the stock's float, there are a relatively low number of shares available for other investors who want to own a stake in this company.

Since a stock's price is always a reflection of supply and demand, any substantial increase in demand could send prices on a rapid and steep upward climb due to a severely limited supply.

Armor has a long history of successful acquisitions, and the company's strong earnings track record proves that it is capable of generating sustainable profits and tremendous shareholder value. The company's relatively small size may have kept it off investors' radar screens in the past, but that anonymity won't last for long. It's only a matter of time until investors around the globe realize just how big an opportunity this "small" company has to offer.

RightLine Special Reports
Pro RightLine Corp
Round Rock, Texas
PH: 512-458-6046
http://www.rightline.net/

Company Information

For a closer look at Armor's Financial Reports, leadership team, and other important data, please reference the additional information provided below:

Corporate Address

Armor Holdings, Inc.
1400 Marsh Landing Pkwy, Ste 112
Jacksonville, FL 32250
Phone: 800-654-9943
Fax: 904-741-5400
Home Page: http://www.armorholdings.com

Contact Information

Michael Fox
President of Corporate Communications
Phone: 203-222-9145
Email: mfox@icrinc.com
              Or
James R. Palczynski
Investor Relations
Phone: 203-222-9013

Current Market Information - Armor Holdings Inc.

Recent Price as of April 8, 2004: $33.34

52-Week High: $35.75

52-Week Low: $10.25

YTD Price Percent Change: 32%

Beta: 0.567

Short data: Shares Short: 1.08 Million
                     Short % of float: 4.41% (as of 03-08-04)

Shares Outstanding: 28.54 million

Institutional Holdings - Armor Holdings Inc.

Number of Shares Held by Institutions - 25,000,000

Percent of Shares Outstanding Held by Institutions - 88%

Number of Institutions Holding Shares - 281

Key Executives

Executive Team - Armor Holdings Inc.

Warren B. Kanders, appointed Chairman of the Board and Chief Executive Officer in 2003, has been the Chairman since Armor Holdings incorporated in January 1996. From October 1992 to May 1996, Mr. Kanders served as Vice Chairman of the board of Benson Eyecare Corporation. From June 1992 to March 1993, Mr. Kanders served as the President and a director of Pembridge Holdings, Inc.

Robert R. Schiller, appointed President in January 2004, has served as Chief Operating Office since April 2003. Rising within the company since 1996, Mr. Schiller's prior leadership positions within Armor include: Executive Vice President and CFO From November 2000 - March 2003, Executive Vice President and Director of Corporate Development from January 1999 - November 2000, and as Vice President of Corporate Development from July 1996 to December 1998.

Prior to joining Armor Holdings, Mr. Schiller served as Chief Financial Officer of Troma, Inc., an independent film studio. From 1994 to July 1996, Mr. Schiller was a principal in the merchant banking firm of Circadian Capital Corporation and from 1993 to 1995, he was a director of corporate finance for Jonathan Foster & Co. L.P., an investment banking and financial advisory firm.

Glenn J. Heiar, CPA, CMA, was named Chief Financial Officer in March of 2004, and has been the Chief Accounting Officer for Armor Holdings, Inc. since March of 2003. Mr. Heiar previously served as the CFO of Armor Mobile Security Division from February 2002 until March 2003. Pirelli Cables and Systems, North America retained Mr. Heiar's services from 1996-2001 as V.P. and C.F.O.

From 1987 to 1996, Mr. Heiar worked for Alcatel Alsthom as a Financial V.P. and in various other financial positions. Preceding this, Mr. Heiar spent 1985-1987 with Royster Company as Divisional Controller and Plant Controller. From 1982-1985, Mr. Heiar worked in the audit department of the public accounting firm of Clifton, Gunderson & Company.

Stephen E. Croskrey joined Armor Holdings, Inc. as President and Chief Executive Officer of the Products Division in February 1999. From 1998 to February 1999, Mr. Croskrey served as Director of Sales for Allied Signal, Inc.'s $600 Million Performance Fibers Division. From 1988 to 1998, Mr. Croskrey served in various positions for Mobil Oil's Lubricant Division, most recently as Manager of the Central Region, a $180 million business.

Prior to 1988, Mr. Croskrey spent six years in the US Army as a Captain. During this time he served as a Company Commander in Korea and Ft. Lewis, Washington.

Gary Allen is Senior Vice President and General Manager of the Mobile Security Division of Armor Holdings, which includes O'Gara-Hess & Eisenhardt, AMS-France and Germany. Mr. Allen began at O'Gara-Hess & Eisenhardt, as a Plant Manager from 1994 - 1995. He spent the next several years in various senior leadership positions including Senior V.P. Worldwide Operations and V.P. Worldwide Operations.

Preceding his career at O'Gara, Mr. Allen spent 10 years with General Electric's Aircraft Engine plant, fulfilling various roles in Supervision, Management, Production Control and Operations. When Mr. Allen left GE he was Manager of Shop Operation's and Structures, a $240 million dollar business. Before joining General Electric, Mr. Allen served in the U.S. Navy Submarine Group.

Robert F. Mecredy, appointed President of Aerospace & Defense Group in December 2003, joined Armor Holdings as Corporate Vice President for Government Affairs in October 2001. Previous to Armor Holdings, Mr. Mecredy spent 10 years with Firearms Training Systems, Incorporated, holding positions ranging from Director of U.S. Military Marketing and Sales through CEO, president and director. During the period 1988 to 1990, Mr. Mecredy was Director of Army and Marine Corps programs for Raytheon's Washington DC Office, and from 1986 to 1988 was Vice President of Operations for Communications Technology Applications, Inc.

Mr. Mecredy served twenty years in the U.S. Army following his enlistment in 1966 until retirement as lieutenant colonel in 1986, leading units of infantry or aviation at platoon through battalion level, assignment to the Department of the Army staff to manage the Army's training budget, and concluding military service as Deputy Director of the Army Staff and White House Liaison Officer.

Mark A. Williams, CPA joined Armor Holdings, Inc. as V.P. and C.F.O. of the Products Division in 1998. Before that, Mr. Williams served as V.P. of Finance for Kinco, Ltd., a privately owned manufacturer of aluminum windows from 1991-1998. Mr. Williams also served concurrently as Corporate Controller for three companies from 1981-1990: Driltech, Inc., Tamrock, Inc., and Haskell Financing, Inc. The companies are subsidiaries of Tampella, Ltd. of Finland. Mr. Williams was Senior Auditor for Arthur Andersen & Co. CPA's from 1978 - 1981.

Philip A. Baratelli, CPA, appointed Corporate Controller and Treasurer in March of 2003, has served as Corporate Controller since joining Armor Holdings, Inc. in June 2001. Prior to joining Armor Holdings, Mr. Baratelli was employed by PricewaterhouseCoopers LLP from 1998 to 2001 in various positions ranging from Associate to Senior Associate. From 1991 to 1997, Mr. Baratelli worked for Barnett Banks, Inc. in various finance and credit analysis positions. Mr. Baratelli graduated with a B.S. in Finance in 1989 from Florida State University and a Bachelor's Degree in Accounting from the University of North Florida in 1995. Mr. Baratelli is a Certified Public Accountant.

Board of Directors - Armor Holdings Inc.

Warren B. Kanders, has served as the Chairman of the board since January 1996 and as the Chief Executive Officer since April 9, 2003. Mr. Kanders has served as a member of the Board of Directors of Clarus Corporation since June 2002 and as the Executive Chairman of Clarus Corporation's Board of Directors since December 2002. From October 1992 to May 1996, Mr. Kanders served as Vice Chairman of the board of Benson Eyecare Corporation. From June 1992 to March 1993, Mr. Kanders served as the President and a director of Pembridge Holdings, Inc.

Burtt R. Ehrlich, has been a director since January 1996. Mr. Ehrlich has also served as a member of the Board of Directors of Clarus Corporation since June 2002 and as Chairman of the Board of Directors of Langer, Inc. since February 2001. Mr. Ehrlich served as Chairman and Chief Operating Officer of Ehrlich Bober Financial Corp. (the predecessor of Benson Eyecare Corporation) from December 1986 until October 1992, and as a director of Benson Eyecare Corporation from October 1992 until November 1995.

Nicholas Sokolow, has served as a director on Armor's Board since January 1996. Mr. Sokolow too has served as a member of the Board of Directors of Clarus Corporation since June 2002. Mr. Sokolow has been a partner in the law firm of Sokolow, Dunaud, Mercadier & Carreras since 1994. From June 1973 until October 1994, Mr. Sokolow was an associate and partner in the law firm of Coudert Brothers.

Thomas W. Strauss, has been on the board of directors since May 1996. Mr. Strauss has also served as a member of the Board of Directors of Langer, Inc. since June 2002. Since 1995, Mr. Strauss has been a principal with Ramius Capital Group, a privately held investment management firm. From June 1993 until July 1995, Mr. Strauss was co- chairman of Granite Capital International Group, an investment banking firm. From 1963 to 1991, Mr. Strauss served in various capacities with Salomon Brothers Inc, an investment banking and brokerage firm, including President and Vice-Chairman.

Alair A. Townsend, has served as one of Armor's directors since December 1996. Since February 1989, Ms. Townsend has been publisher of Crain's New York Business, a business periodical. Ms. Townsend was a former governor of the American Stock Exchange. Ms. Townsend served as New York City's Deputy Mayor for Finance and Economic Development from February 1985 to January 1989.

Deborah Zoullas, is a private investor, and has served as a director since July 2002. From December 1998 until December 2000, Ms. Zoullas served as the Executive Vice President of Sotheby's Holdings, Inc. and during 2000 served on its Board of Directors. From 1974 until 1996, Ms. Zoullas worked in various capacities within the Investment Banking Division of Morgan Stanley & Co. Incorporated. Ms. Zoullas is an Advisory Director of Morgan Stanley, a member of the Advisory Board of The Stanford Business School, a Director of the Helena Rubinstein Foundation and a member of the Executive Committee of The Projects Committee of Memorial Sloan Kettering.

Financials

Armor Holdings, Inc. Reports Strong 4th Quarter Results

Reaffirms FY04 Guidance Of $1.50 To $1.60 Per Share After Anticipated Non-Recurring Expenses

JACKSONVILLE, Fla., Feb. 12 /PRNewswire-FirstCall/ -- Armor Holdings, Inc. (NYSE: AH), a leading manufacturer and distributor of security products and vehicle armor systems, today announced better than anticipated financial results for the fourth quarter and fiscal year ended December 31, 2003.

Fourth Quarter Results

For the fourth quarter ended December 31, 2003, the Company reported revenue from continuing operations of $112.2 million, an increase of 34.6% versus the prior year's $83.4 million. Divisional revenues for the fourth quarter were as follows: the Products division reported revenue of $55.0 million, an increase of 12.4% versus the prior year's level of $48.9 million; the Mobile Security division reported revenue of $48.7 million, an increase of 41.3% versus the prior year's level of $34.5 million; the Company's Simula division, which was acquired on December 9, 2003, contributed $8.5 million to fourth quarter revenues. The Company noted that with the exception of approximately $9 million of revenue associated with the acquisitions of Simula and Hatch, the quarter's revenue growth was generated organically.

Net loss for the fourth quarter was $(4.9) million or $(0.17) per share versus the year-ago level of $(13.0) million or $(0.44) per share. Net loss from discontinued operations for the fourth quarter was $(7.1) million, or $(0.24) per share, compared to $(21.0) million or $(0.71) per share in the prior year's fourth quarter. Included in the fourth quarter net loss from discontinued operations was a loss on sale of ArmorGroup Services, net of tax benefits. This loss on sale primarily resulted from realized foreign currency translation adjustments on the net assets denominated in foreign currencies of the Company's services division sold during the quarter. Also during the quarter, the Company incurred approximately $8.0 million, or $0.26 per share on an after-tax basis, of integration and other non-recurring charges primarily related to the vesting of stock grants based on achievement of the target price for the Company's common stock contained in the grant terms.

Earnings per share from continuing operations for the fourth quarter, prior to the effect of the non-recurring charges, were $0.34, an increase of 36.0% versus the year-ago quarter's result (on the same basis) of $0.25. This was better than the Company's most recent guidance, which was on this basis, and the current analysts consensus estimate of $0.29. The fourth quarter earnings included approximately $0.03 per share benefit for state income taxes due to certain state tax planning strategies. Following this press release is a reconciliation of net income as reported to proforma net income from continuing operations for the three and twelve-months ended December 31, 2003 and 2002.

Cash flow from operations for the fourth quarter, on a continuing operations basis, was $14.8 million versus $16.8 million in the year- ago quarter. Free cash flow which is defined as cash flow from operations less capital expenditures, was $11.6 million versus $15.4 million in the same period last year.

Robert R. Schiller, President and Chief Operating Officer, commented, "We completed the fourth quarter with record revenues and gross profit. Further, our backlog is at record levels and we have good visibility on our business for the year ahead. Both our Mobile Security and Products businesses were strong and the integration of Simula, which was acquired toward the end of the quarter, is progressing smoothly. In addition to a strong aerospace and defense orientation, Simula brings a robust infrastructure for and a heightened focus on research and development to the Company which we believe will lead to incremental opportunities for growth."

The Company's gross profit margin for continuing operations in the fourth quarter increased to 31.2% of sales versus the level a year ago of 30.1% of sales. This increase was due to expansion in both the Mobile Security and Products divisions and was partially offset by the inclusion of revenues from Simula.

The Company's operating expenses as a percentage of revenue for continuing operations excluding integration and other non-recurring charges, increased slightly to 15.6% of revenue versus 15.3% of revenue in the year-ago quarter. This increase was primarily the result of increased bonus expense, legal and accounting fees, insurance costs and internal audit expenses.

Full Year Results

For the full year ended December 31, 2003, the Company reported revenue from continuing operations of $365.2 million, an increase of 19.7% versus the 2002 level of $305.1 million. For the full year: the Products division reported revenue of $199.1 million, an increase of 10.6% versus the 2002 level of $179.9 million; the Mobile Security division reported revenue of $157.5 million, an increase of 25.9% versus the 2002 level of $125.2 million; and, as previously mentioned, Simula contributed $8.5 million.

Fiscal 2003 net income was $10.9 million, or $0.38 per share, versus the 2002 loss of $(17.7) million or $(0.57) per share. Net loss from discontinued operations for the full year was $(6.1) million, or $(0.21) per share primarily related to fourth quarter realized foreign currency translation adjustments, compared to a net loss of $(39.0) million or $(1.26) per share in the prior year. During the year, the Company incurred approximately $12.6 million, or $0.36 per share on an after-tax basis, of integration and other non-recurring charges.

Earnings per share from continuing operations for the full year, prior to the effect of non-recurring charges were $0.95, an increase of 9.2% versus the 2002 level (on the same basis) of $0.87.

On a continuing operations basis, the Company generated record cash flow from operations for the full year of $47.7 million versus $16.3 million, on the same basis, in 2002. Free cash flow was $38.9 million for the full year versus $10.4 million in the same period last year.

Robert R. Schiller, President and Chief Operating Officer, commented, "We are pleased with the outcome of what we believe will prove to be a watershed year in the development of our Company. Not only did we exceed the financial goals which we set for ourselves, but three key events reshaped our operations for the future. The development of the conflict in Iraq, the disposition of our services business, and our December acquisition of Simula, Inc. have all served to focus and energize our management team around considerable opportunities for growth in the aerospace and defense market. We believe these opportunities, combined with our stable, growing businesses in the law- enforcement product market and the commercial armored vehicle market, position our company well for the future."

Balance Sheet

The Company noted that its year-end balance sheet reflects the assets and liabilities associated with the acquisitions of Simula, Inc. and Hatch. As of December 31, 2003, Armor Holdings reported a cash level of $111.9 million versus the level a year-ago of $16.6 million. Total debt (current and long- term) at year-end 2003 of $189.9 million includes the Company's $150.0 million subordinated debenture issued on August 12, 2003, and $31.1 million of bonds assumed in the Simula acquisition, which were retired on January 5, 2004, compared to total debt (current and long-term) at year-end 2002 of $7.2 million.

Guidance

The Company reiterated comfort with the guidance it issued on January 27 for fiscal 2004 revenues of $620 to $640 million and fully diluted earnings per share of $1.50 to $1.60. The company noted that it now issues guidance including the effect of expected integration and other non-recurring charges which, in fiscal 2004, are estimated to be approximately $0.09 - $0.10 per share. Certain matters discussed in this press release constitute forward- looking statements that involve risks and uncertainties that could cause actual results to differ materially from those projected. The Company may use words such as "anticipates," "believes," "plans," "expects," "intends," "future," and similar expressions to identify forward-looking statements. These risks and uncertainties are described in the Company's filings with the Securities and Exchange Commission, including the company's Registration Statement on Form S-3, its 2002 Form 10-K and most recently filed Form 10-Qs.

                  ARMOR HOLDINGS, INC. AND SUBSIDIARIES
       CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
                (in thousands, except per share amounts)


                       Three-Months Ended     Twelve-Months Ended
                       12/31/03   12/31/02    12/31/03    12/31/02
REVENUES:

    Products            $54,953    $48,897    $199,093    $179,946
    Mobile Security      48,673     34,454     157,548     125,171
    Simula                8,531        --        8,531        --
    Total Revenues      112,157     83,351     365,172     305,117

   COSTS AND EXPENSES:
    Cost of sales        77,190     58,264     253,586     210,745
    Operating expenses   18,290     12,790      62,795      49,836
    Amortization            288         32         489         245
    Integration and other
    non-recurring charges 8,008      1,450      12,573       5,926

   OPERATING INCOME       8,381     10,815      35,729      38,365
 
   Interest expense, net  1,721        254       4,012         923
   Other expense, net       327        128         508          51

   INCOME FROM CONTINUING
    OPERATIONS BEFORE PROVISION 
    FOR INCOME TAXES      6,333     10,433      31,209      37,391

   PROVISION FOR
    INCOME TAXES          4,159      2,451      14,203      16,054

    INCOME FROM
    CONTINUING OPERATIONS 2,174      7,982      17,006      21,337

   DISCONTINUED OPERATIONS
    LOSS FROM DISCONTINUED
    OPERATIONS 
    NET OF TAX           (7,103)   (20,999)     (6,120)    (39,026)

   NET INCOME (LOSS)    $(4,929)  $(13,017)    $10,886    $(17,689)

   NET INCOME PER
    COMMON SHARE - BASIC
    INCOME FROM CONTINUING
    OPERATIONS            $0.08      $0.27       $0.61       $0.70

   LOSS FROM DISCONTINUED
    OPERATIONS            (0.25)     (0.71)      (0.22)      (1.28)
   BASIC EARNINGS (LOSS)
    PER SHARE            $(0.17)    $(0.44)      $0.39      $(0.58)

   NET INCOME PER COMMON
    SHARE - DILUTED

   INCOME FROM CONTINUING
    OPERATIONS            $0.07      $0.27       $0.59       $0.69

   LOSS FROM DISCONTINUED
    OPERATIONS            (0.24)     (0.71)      (0.21)      (1.26)

   DILUTED EARNINGS (LOSS)
    PER SHARE            $(0.17)    $(0.44)      $0.38      $(0.57)



                  ARMOR HOLDINGS, INC. AND SUBSIDIARIES
   Reconciliation of net income (loss) as reported to pro forma net income
                  from continuing operations (Unaudited)
                 (in thousands, except per share amounts)

                       Three-Months Ended     Twelve-Months Ended
                       12/31/03   12/31/02    12/31/03    12/31/02
   Net income (loss),
    as reported         $(4,929)  $(13,017)    $10,886    $(17,689)

   Plus: Loss from 
    discontinued
    operations,
    net of tax            7,103     20,999       6,120      39,026

   Income from
    continuing
    operations           $2,174     $7,982     $17,006     $21,337

   Plus: Integration and
    other non-recurring
    charges               8,008      1,450      12,573       5,926

   Tax effect of
    above items            (328)      (635)     (2,063)     (2,330)

   Plus: Tax charges
    related to discontinued
    operations included
    in the tax provision for
    continuing operations     --    (1,422)        --        1,872

   Pro forma net income
    from continuing
    operations           $9,854     $7,375     $27,516     $26,805

   Weighted average
    diluted shares       29,364     29,623      28,954      30,957

   Pro forma diluted
    earnings per share
    from continuing
    operations            $0.34      $0.25       $0.95      $ 0.87

   Fully diluted (loss)
    earnings per share
    as reported          $(0.17)    $(0.44)      $0.38     $(0.57)


           Reconciliation of net income (loss) as reported to operating 
             income from continuing operations, EBITDA from continuing
              operations and EBITDA from continuing operations before
              integration and other non-recurring charges (Unaudited)
                     (in thousands, except per share amounts)

                       Three-Months Ended     Twelve-Months Ended
                       12/31/03   12/31/02    12/31/03    12/31/02

   Net income (loss), as
    reported            $(4,929)  $(13,017)    $10,886    $(17,689)

   Plus: Loss from
    discontinued operations,
    net of tax            7,103     20,999       6,120      39,026

   Plus:  Provision
    for income taxes
    on income from
    continuing
    operations            4,159      2,451      14,203      16,054

   Plus:  Other
    expense, net            327        128         508          51

   Plus:  Interest
    expense, net          1,721        254       4,012         923

   Operating income
    from continuing
    operations            8,381     10,815      35,729      38,365

   Plus: Amortization       288         32         489         245

   Plus: Depreciation     1,913      1,422       6,516       4,952

   EBITDA from continuing
    operations           10,582     12,269      42,734      43,562

   Plus:  Integration and
    other non-recurring
    charges               8,008      1,450      12,573       5,926

   EBITDA from continuing
    operations before
    integration and
    other non-recurring
    charges             $18,590    $13,719     $55,307     $49,488

SOURCE Armor Holdings, Inc.

Next Earnings Release: Estimated May 3, 2004

First Call Mean Earnings Estimates as of March 17, 2004:


Year     Q1      Q2      Q3      Q4    Annual  #Brokers 
2005    0.40    0.41    0.42    0.43    1.63      6  
2004    0.37    0.41    0.43    0.45    1.66      6 
2003A   0.19    0.21    0.22    0.34    0.95      5  


*A denotes Actual earnings

SOURCE Armor Holdings, Inc.

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