Defense Industries International, Inc. Reports Second Quarter Results.

Business Editors

LOS ANGELES--(BUSINESS WIRE)--Aug. 15, 2002

Defense Industries International, Inc. (OTCBB: DFNS):

-- Revenue increases 185.8% versus last year's comparative period;

-- Net income increases 239.3% versus last year's comparative period;

-- Trends remain strong

Defense Industries International, Inc. (OTCBB: DFNS) a leading manufacturer and global provider of personal military and civilian protective equipment and supplies, today announced results of operations for the second quarter ended June 30, 2002.

For the three months ended June 30, 2002, revenues increased to $2,692,415 versus last year's comparative period of $942,188, representing an increase of approximately 185.8%. Gross profit for the three months ended June 30, 2002 increased to $1,029,136 versus last year's comparative period of $326,062, representing an increase of approximately 215.6%. The gross margin for the three months ended June 30, 2002 improved to 38% as compared to 34.6% for the same three months in 2001. Net income for the three months ended June 30, 2002, increased to $242,628 versus last year's comparative period of $71,499, representing an increase of approximately 239.3%

For the six months ended June 30, 2002, revenues increased to $5,313,635 versus last year's comparative period of $2,039,258 representing an increase of approximately 160.5%. Gross profit for the six months ended June 30, 2002 increased to $2,046,527 versus last year's comparative period of $665,269, representing an increase of approximately 207.6%. The gross margin for the six months ended June 30, 2002 improved to 39% as compared to 33% for the same six months in 2001. Net income for the six months ended June 30, 2002, increased to $621,883 versus last year's comparative period of $212,730, representing an increase of approximately 192.3%

Joseph Fostbinder, President of Defense Industries International, Inc. commented "this quarter marks the middle of our 20th consecutive year of profitability, an all time record since our inception in 1983, and the continuation of robust trends. Demand for our product lines remains high. Our management continues to be optimistic looking forward."

About Defense Industries International, Inc.

Defense Industries International, Inc. ("Defense Industries") (www.defenseindustries.net) is a leading manufacturer and global provider of personal military and civilian protective equipment and supplies. Defense Industries' subsidiary, Export Erez Ltd., was formed and registered in 1983.

Defense Industries' main products include body armor, bomb disposal suits and bullet proof vests and jackets; ballistic helmets, plates, wall covers and one-way protective windows; personal military equipment, battle pouch units and combat harness units; dry storage units, liquid logistics, tents and vehicle covers; and winter suits, sleeping bags and backpacks. Defense Industries' products are used by military, law enforcement, border patrol enforcement and other special security forces, corporations, non-governmental organizations and individuals throughout the world. Customers include the Israel Defense Forces, the North Atlantic Treaty Organization (NATO), the United Nations Peacekeeping Forces and other U.N. organizations.

Defense Industries manufactures its own products, thereby enabling it to offer highly competitive pricing and to fulfill product orders on a rapid and efficient basis. Its manufacturing facilities meet American EQNET and international ISO 9002 standards. Quality control in the Company's manufacturing facilities is performed according to ISO 9002; MIL.STD.105D; MIL-I-45208A (for the U.S. Armed Forces); AQAP (for the German Armed Forces and NATO); and the National Institute of Justice (N.I.J.).

Defense Industries' strategic objective is to be the leading global provider of personal military and civilian protective equipment and supplies. Defense Industries intends to realize its strategic objective by, amongst other methods, selectively pursuing strategic acquisitions that enhance its product lines and geographic presence in an effort to consolidate its highly fragmented industry and to create a more diverse and global reach in its marketplace.

FORWARD LOOKING STATEMENTS

This data sheet includes "forward-looking statements" within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). These statements involve known and unknown risks, uncertainties, and other factors that may cause the Company's or its industry's results, levels of activity, performance, or achievements to be significantly different from any future results, levels of activity, performance, or achievements expressed or implied by such forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as "may," "will," "should," "expects," "plans," "intends," "anticipates," "believes," "estimates," "predicts," "potential," or "continue" or the negative of such terms or other comparable terminology. Although management believes that the expectations reflected in the forward-looking statements are reasonable, it cannot guarantee future results, events, and levels of activity, performance, or achievements. Neither the Company nor its agents assume responsibility for the accuracy and completeness of the forward-looking statements.

Certain statements contained in this press release are "forward-looking statements" within the meaning of applicable federal securities laws, including, without limitation, anything relating or referring to future financial results and plans for future business development activities, and are thus prospective. Forward-looking statements are inherently subject to risks and uncertainties some of which cannot be predicted or quantified based on current expectations. Such risks and uncertainties include, without limitation, the risks and uncertainties set forth from time to time in reports filed by the company with the Securities and Exchange Commission. Although the company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. Consequently, future events and actual results could differ materially from those set forth in, contemplated by, or underlying the forward the forward-looking statements contained herein. The company undertakes no obligation to publicly release to these forward-looking statements made to reflect events or circumstances after the date hereof.

This press release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Readers are cautioned not to place undue reliance on these forward-looking statements. Actual results may differ materially from those indicated by these forward-looking statements as a result of risks and uncertainties impacting the Company's business including increased competition; the ability of the Company to expand its operations through either acquisitions or internal growth, to attract and retain qualified professionals, and to expand commercial relationships; technological obsolescence; general economic conditions; and other risks detailed time to time in the Company's filings with the Securities and Exchange Commission (SEC).