ARNPRIOR, ONTARIO--(Marketwire - May 14, 2012) - Pacific Safety Products Inc. ("PSP" or the "Company") (TSX VENTURE:PSP), announced today that the letter of intent with ArmorWorks Enterprises LLC to acquire all of the issued and outstanding shares of ArmorWorks Enterprises Canada, ULC in a reverse take-over transaction (the "Transaction") has been terminated. The letter of intent was initially announced by PSP on April 18, 2012. Trading in the shares of PSP was halted pending review by the TSX Venture Exchange of the Transaction and is expected to resume shortly.

The board of directors of the Company has exercised its option to terminate the Company's contract with its Executive Chairman, Daniel Marks, upon 30 days' notice. The role of Interim Chairman will be assumed immediately by independent director Fraser Campbell. Daniel Marks resigned his position as a director of the Company effective immediately. In addition, in order to create a separation between the Chief Executive Officer and Chief Financial Officer roles, Douglas Lucky remains the Chief Executive Officer of the Company and will relinquish his position as Interim Chief Financial Officer. The Company has appointed Sharon Johnston as Interim Chief Financial Officer; Ms. Johnston has been the Director of Finance for the Company since June, 2011.

The Company has been taking the necessary steps to align and size its operations to current North American business opportunities and expects these efforts to improve the financial outlook of PSP. The Company also continues to consider and evaluate on an ongoing basis all alternatives available to it in the course of realizing its strategic direction. The Company expects that its financial statements and MD&A for the quarter ended March 31, 2012 will be filed on SEDAR later this month.

About PSP:

The mission statement of Pacific Safety Products Inc. is ...we bring everyday heroes home safely®. PSP is an established industry leader in the production, distribution and sale of high-performance and high-quality safety products for the defence and security market. These products include body armour to protect against ballistic, stab and fragmentation threats, ballistic blankets to reduce blast effects, tactical clothing, and protective products against chemical and biological hazards. PSP is the largest body armour manufacturer in Canada, directly supplying the Canadian Department of National Defence, Federal Government Agencies and major Canadian law enforcement organizations. The Company, through its U.S. subsidiary Sentry Armor Systems Inc., provides body armour products under the GH Armor Systems® brand to U.S. based law enforcement and private security firms. The Company also produces tactical clothing. Pacific Safety Products is a reporting issuer in British Columbia, Alberta and Ontario, Canada and publicly trades under the symbol PSP on the TSX Venture Exchange.

Forward-Looking Information: This news release contains certain statements which may constitute "forward-looking information" within the meaning of applicable securities laws. These statements relate to anticipated or assumed events or results including, without limitation, with respect to the anticipated impact on the Company's financial outlook of the steps being taken to align and size its operations to current North American business opportunities and the Company's consideration and evaluation of strategic alternatives. The forward-looking information contained herein is expressly qualified in its entirety by this cautionary statement. Although the Company believes that the expectations conveyed by the forward-looking information are reasonable based on information currently available to it, these statements are based on management's expectations, estimates and projections and involve a number of risks, uncertainties and assumptions, both known and unknown. As a result, the results or events depicted in these forward-looking statements may differ materially from actual results or events. Many factors could cause results to differ materially from those stated including, but not limited to the impact of price and product competition, changes in general industry and market conditions, inability to successfully plan and execute cost reduction and business improvement strategies, ability to retain key staff, restrictions and covenants contained in credit agreements, fluctuations in currency, exchange and interest rates and commodity prices, ability to retain existing customer contracts, reliance on key customers, inability to identify and execute on value-enhancing strategic alternatives, as well as various other factors which are discussed in the Company's filings with applicable securities regulatory authorities at [ www.sedar.com ]. Any forward-looking statement speaks only as of the date of this news release and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise.