Pacific Safety Products Inc.("PSP" or the "Company"), a North American manufacturer of advanced armour and personal protection solutions, today announced that it has entered into a letter of intent with an affiliate of Sun Capital Partners, Inc., an arm's length third party (the "Purchaser") to sell substantially all of its assets on a cash-free, debt-free basis for cash payable at closing (the "Sale Transaction"). During an exclusivity period, the Purchaser will complete a due diligence review, and the parties will endeavor to negotiate a mutually satisfactory definitive purchase agreement.

Faced with a challenging operating environment, management and the board of directors of the Company have concluded the Sale Transaction is in the best interests of the Company and its stakeholders.

If the Sale Transaction closes, it is expected that the Company will have no operating assets, the Company will cease to be a manufacturing company and the Company's common shares will be transferred to the NEX board of the TSX Venture Exchange while it formulates a strategic direction to maximize value for shareholders.