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DAC Technologies Announces a 43% Sales Increase for the Year 2005

DAC Technologies (OTC BB: DAAT) today announced net sales for the year ended December 31, 2005 of $13,351,262 as compared to $9,352,353 for 2004. This is an increase of $3,998,909, or 43%.

David A. Collins, Chairman and CEO, stated, "While a 43% sales increase is quite good, we feel we should have achieved our goal of $14,000,000 in annual sales for 2005. December sales were $1,834,070 versus $1,750,070 for 2004. The major reason December sales were not as high as we anticipated was due to the fact that reorders from Wal-Mart permanent module items were not in line with retail sales at Wal-Mart, as they had been in previous months. Retail sales of DAC items at Wal-Mart for the month of December were up 45% over 2004, yet reorders were only up 6%. This problem was eliminated in January by DAC working closely with the Wal-Mart rebuyer, turning in reports twice weekly, to make sure reorders are sufficient to maintain store instock at a 97% to 98% level. We still expect 2005 earnings to increase significantly over 2004."

Collins also stated, "As we look toward 2006 and beyond, we expect sales and profits to grow in the double digit range. DAC continues to develop new products, such as gun cases containing built-in cleaning kits, new safes, a new game processing kit, new camo Sportsmans lighters, and additional gun cleaning kits. The Company has also hired an engineering firm to try and develop a universal mounting bracket and winch for ATVs. The Company has started a direct import program, and has started doing private label programs for retailers, catalog companies and gun manufacturers. The Company will be attending and introducing new products at the annual SHOT Show in Las Vegas, February 9th through the 12th. This is the industry's largest trade show. The SHOT Show, plus determining what new items will be purchased for the fall season, will enable us to give further guidance on 2006, sometime in the March/April time frame as was done in 2005."

Collins further stated, "Our GunMaster line of gun cleaning kits continue to increase its market share, and features of our kits are unique to the industry. The Company protects its intellectual property through the filing of patents. Our patent attorneys have advised us that a patent and claims have been allowed by the United States Patent Office on features of our gun cleaning kits and will be issued in the next few months. In addition, the Company has additional patent filings pending with the patent office."

About DAC:

DAC Technologies Group International, Inc. is an outsource manufacturer of high quality, reasonably priced security safes, gunlocks, gun cleaning kits and security products, as well as accessory items for the sporting goods market. DAC distributes its products through mass merchandisers such as Wal-Mart and Kmart, and sporting goods retailers and distributors such as Dick's, Big Five, Cabela's, Acusport, Jerry's, RSR and others. DAC also provides gunlocks to OEM gun manufacturers such as Glock, SigArms, Savage, Marlin and Taurus, as well as others. Also, DAC's products are distributed through catalog companies.

The Private Securities Reform Act of 1995 provides a "safe harbor" for forward-looking statements. Certain information included in this press release (as well as information included in written statements to be made) contain statements that are forward looking, such as those relating to consummation of the transaction, anticipated future revenue of the Company's and success of current public offerings. Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future and, accordingly, such results may differ materially from those expressed in any forward-looking statements.


Distributed by Market Wire

Tags: ,Government:Security(lawenforcement,homel and etc), ProfessionalServices:Purchasing, Retail:ConsumerInterest, ,AR,LITTLE ROCK, AR
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