Defense Industries International Assigns Licensing Agreement with Smith & Wesson to Pride Business Development Group.

Business Editors

ASHKELON, Israel--(BUSINESS WIRE)--Aug. 13, 2003

Defense Industries International, Inc. (OTCBB:DFNS), a leading manufacturer and global provider of personal military and civilian protective equipment and supplies, announced today that it has assigned its licensing agreement with Smith & Wesson Holding Corporation to Pride Business Development Group, a privately held company, with operations on both the East and West coasts with extensive marketing relationships throughout the United States.

Defense Industries will have an opportunity to provide certain products, including its proprietary blast resistant wall covering, to Pride Business Development Group to be sold and marketed under the Smith & Wesson name.

In the assignment, which has been approved by Smith & Wesson Holding Corporation, Defense Industries is relieved of certain contingent liabilities associated with the licensing agreement, including minimum royalty requirement, the cost of securing and maintaining product liability insurance, and allocating a substantial marketing budget.

Commenting on the relationship, Joseph Fostbinder, CEO of Defense Industries said, "After continued evaluation of our relationship with Smith & Wesson, which began in December 2002, we determined the most beneficial direction in which to proceed was to transfer the agreement to another party with a built in network of contacts in the United States who can enhance this opportunity, leading to greater results than Defense Industries might realize on its own. We expect to be involved in the production and supply of products to Pride Business Development that will then be marketed under the Smith & Wesson name. The combination of the Smith & Wesson's brand power and name recognition, Pride's numerous relationships with major U.S. companies and our high level of technical sophistication and expertise with respect to personal protection gear brings a new level of added value to all parties involved."

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-resistant vests and jackets; ballistic wall covers, helmets, plates 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.

Safe Harbor Statement

This press release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. 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 production schedules, 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-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. Neither the Company nor its agents assume responsibility for the accuracy and completeness of the forward-looking statements and are thus prospective.