GRANHOLM ANNOUNCES SECOND CHANCE ARMOR TO EXPAND IN CENTRAL LAKE, BRINGING 160 NEW JOBS

Body Armor Manufacturer Chooses Michigan for $1 Million + Investment

Governor Jennifer M. Granholm today announced Second Chance Armor Inc. will invest more than $1 million to expand and resume operations at its existing facility in Central Lake Township to accommodate the manufacture of a new line of concealable body armor. The project is expected to create 160 new jobs, including 100 directly by the company. Assistance offered through the Michigan Economic Development Corporation helped convince the company to choose Michigan over a competing site in Alabama.

“Second Chance Armor's return to Central Lake will create the kind of good-paying jobs that we need,” Granholm said. “This expansion signifies that Michigan is the right place for manufacturing companies to call home.”

The MEDC approved a Single Business Tax credit valued at more than $766,000 over nine years to win the company's investment. Central Lake Township has proposed a 12-year tax abatement valued at $70,000 to support the project.

“From the very first day Armor Holdings purchased the assets of Second Chance at the bankruptcy auction, we've been impressed by the professionalism and high level of productivity of our Michigan employees,” Vice President and General Manager of Second Chance Armor, Inc. Glenn L. Katz said “Our employees' attitude and productivity, together with the great cooperation and support from state and local governments, is what convinced us that we should expand our production in Michigan instead of in one of our eight other plants that produce body armor”.

An economic analysis conducted by the MEDC estimates that increased economic activity created by the new facility will generate an additional 60 indirect Michigan jobs, in addition to the 100 created directly by the company. The project is expected to generate more than $50.5 million in personal income for Michigan workers over the life of the tax credit.

“Second Chance Armor is well on its way to re-establishing itself as the leading producer of body armor for our police and military personnel,” MEDC President and CEO James Epolito said. “Thanks to our talented workforce and business-friendly environment, the company chose to make its comeback and grow new jobs in Michigan.”

The expansion is one of five economic development projects the Governor announced today. In all, they are expected to create and retain a total of 14,297 Michigan jobs.

“Central Lake Township is presently experiencing a depressed economy,” Township Supervisor Stan Bean said. “As a township, we find it exciting to see government working with industry from the Governor all the way down to the township level to create jobs for our area.”

Armor Holdings, Inc. (NYSE: AH), a leading manufacturer and distributor of security products and vehicle armor systems serving military, law enforcement, homeland security and commercial markets, bought the majority of the assets of the former Second Chance Body Armor Inc., out of bankruptcy in July, 2005 and now operates the newly-incorporated entity as a wholly owned subsidiary. Armor Holdings is a Fortune 1000 Company and was listed on FORTUNE Magazine's 2005 100 Fastest-Growing Companies List .

In her 2006 State of the State address, Granholm emphasized the importance of making Michigan a global economic powerhouse in the 21 st century. Since January 2005, the Governor and the MEDC have announced the creation or retention of more than 83,000 jobs as a result of targeted assistance provided by the MEDC.

The Michigan Economic Development Corporation, a partnership between the state and local communities, promotes smart economic growth by developing strategies and providing services to create and retain good jobs and a high quality of life. For more information on the Michiga