Simula Sees Armor as Significant Contributor to Growth
1 June 2000
Simula Sees Armor as Significant Contributor to Growth
PHOENIX--June 1, 2000--Simula Inc. said today that sales of its proprietary armor products -- anticipated to exceed $10 million in 2000 -- are expected to grow at an annual rate of 20 percent to 25 percent over the next five years.Donald W. Townsend, president and chief executive officer of Simula, noted that, due to fundamental shifts in U.S. military strategy brought on by the changing nature of global threats, there is a growing need to minimize casualties while optimizing mobility and response time. This creates a significant opportunity for Simula, said Townsend, given the company's proven abilities as a developer and manufacturer of cost-effective, lightweight ballistic-protection systems for personnel and vehicles.
The company also sees significant opportunities to employ its armor products and technologies in non-military areas. As an example, Townsend pointed to an agreement with Second Chance Body Armor, the world's largest producer of concealable soft body armor, under which Second Chance has licensed Simula's soft armor technology for use in vests sold in commercial and law-enforcement markets. According to Townsend, the technology has enabled Second Chance to pass National Institute of Justice certification tests at a significant weight savings to any other vest currently on the market.
As further evidence of potential synergies between military and civilian applications, Townsend cited recently announced licensing agreements with PPG Industries and Intercast Europe to commercialize Simula's family of patented impact-resistant transparent polymers for ophthalmic lenses and premium sport sun lenses; these same polymers, he noted, can provide significant improvements in the performance of transparent armors, whether utilized by themselves or in combination with other materials.
The company currently manufactures very lightweight body armor plates for the U.S. Army and Marine Corps, applique armor for the Armored Security Vehicle (ASV, manufactured by Textron Marine & Land Systems), a variety of armored seats for helicopters (including the AH-64 Apache, UH-60 Black Hawk, and V-22 Osprey), and special armor kits for other military ground vehicles and aircraft.
The design and manufacture of armor is one of the areas addressed in the company's strategic repositioning program designed to focus on core competencies. Simula's proprietary armor technologies encompass both opaque and transparent armors. Opaque armors are generally composite laminates utilizing metals, fiber reinforced plastics and ceramics, whereas transparent armors are comprised of monolithic plastic, plastic laminate, and glass/plastic laminates. All of the company's armor products are tailored to meet the specific performance and cost requirements of each customer.
Simula is a diversified technology company that designs and manufactures occupant safety systems and devices engineered to safeguard human life in a wide range of air, ground, and sea transportation vehicles. The company operates in two principal markets (government and defense contracting, and automotive safety systems) which encompass six core product and technology areas: advanced polymer materials; inflatable restraints; seating systems; transparent and opaque armor; personnel protective equipment and parachutes; and sensors. Additional information about Simula can be found at www.simula.com.
Safe Harbor statement under the Private Securities Litigation Reform Act of 1995: This news release contains forward-looking statements that involve risks and uncertainties that may cause the company's actual experience to differ materially from that which is anticipated. These forward-looking statements include statements about the anticipated growth in the company's protective armor products and statements regarding potential synergies between military and civilian applications of the company's technologies. Actual results may differ materially from those projected. Additional risks include those described herein and in the company's registration statements and periodic reports filed with the U.S. Securities and Exchange Commission.