DHB Industries, Inc. Shareholders File Class Action Lawsuit

21 October 2005

A class action lawsuit was filed in the U.S. District Court for the Eastern District of New York on behalf of all shareholders who purchased the common stock of DHB Industries, Inc. (Amex: DHB - News) between April 21, 2004 and August 29, 2005 (the "class period"). The Class Action Complaint alleges that DHB violated the federal securities laws by issuing a series of false and misleading statements regarding its financial performance and business operations that had the effect of artificially inflating the market price of its securities.

Specifically, the lawsuit alleges that DHB and certain executives made statements that were materially false and misleading because they failed to disclose that: (a) DHB's body armor products containing Zylon did not meet the standards warranteed by the company; (b) the defects in its products subjected DHB to potentially ruinous liability from regulatory, criminal or civil actions; and (c) as a result of the problems with its body armor, the demand for DHB's products would dramatically decline. While the shares of DHB were artificially inflated and with knowledge of the materially false and misleading statements in the marketplace, certain DHB insiders sold millions of shares of the company's securities.

On August 30, 2005, DHB announced that it discontinued the use of Zylon in its bullet resistant products and that it was implementing a Voluntary Replacement Program for customers that owned Zylon containing body armor. DHB also announced that because of the Voluntary Replacement Program, it expected to record a charge to third quarter earnings of approximately $60 million. As a result of the announcement of the Voluntary Replacement Program, shares of DHB common stock fell 23% from $6.66 to $5.10.

The class action lawsuit seeks to recover the damages caused by the improper conduct described above. If you purchased DHB stock between April 21, 2004 and August 29, 2005, you may, no later than November 8, 2005, seek to participate in this action as a lead plaintiff. If you have any questions, wish to discuss this matter, or would like to receive a copy of the Complaint and the documents necessary to participate as a lead plaintiff, you may contact:

Daniel A. Osborn, Esq.
Beatie And Osborn LLP
521 Fifth Avenue, 34th Floor
New York, New York 10175
Toll Free No.: 800-891-6305
Tel. No.: 212-888-9000
Fax No.: 212-888-9664
E-mail: clientrelations@bandolaw.com

You are also invited to view these documents and the frequently asked questions pertaining to becoming a lead plaintiff at our website http://www.bandolaw.com.

Source: PR Newswire

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