The law firm of Milberg Weiss Bershad & Schulman LLP announces that a class action lawsuit was filed today on behalf of purchasers of the securities of DHB Industries Inc. ("DHB" or the "Company") (AMEX: DHB) between April 29, 2004 to August 29, 2005, inclusive (the "Class Period"), seeking to pursue remedies under the Securities Exchange Act of 1934 (the "Exchange Act"). If you bought the securities of DHB between April 29, 2004 to August 29, 2005 and sustained damages, you may, no later than November 8, 2005, request that the Court appoint you as lead plaintiff. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Milberg Weiss Bershad & Schulman LLP, or other counsel of your choice, to serve as your counsel in this action. The action, numbered 05-CV-4332, is pending in the United States District Court for the Eastern District of New York against defendants DHB, David H. Brooks (CEO and Chairman), Dawn M. Schlegel (CFO) and Sandra L. Hatfield (COO). A copy of the complaint filed in this action is available from the Court, and can be retrieved from the clerk's office and various services, or can be viewed on Milberg Weiss's website at: http://www.milbergweiss.com The complaint alleges that defendants' Class Period positive representations regarding DHB's fast-growing business, disseminated in press releases and SEC filings, were materially false and misleading because they failed to disclose that a material portion of the Company's bulletproof vests contained a material amount of Zylon fibers whose effectiveness at stopping bullets degraded over time. By the beginning of the Class Period, defendants knew, or recklessly disregarded, that vests containing Zylon could potentially fail to stop bullets because of fiber degradation, and that serious concerns about their use in body armor was growing in the law enforcement community. Defendant, however, failed to warn investors of the palpable and substantial risk that its Zylon products posed to the Company's business. While the price of the Company's securities was artificially inflated, and before its collapse, DHB insiders, including defendants Brooks, Schlegel and Hatfield, sold a total of 11,288,789 million shares of DHB common stock, reaping gross proceeds of over $220 million. Of that amount, defendant Brooks sold over 10.4 million shares for proceeds exceeding $204 million. The average price at which insiders sold their DHB stock was $19.51. On August 30, 2005, before the open of ordinary trading, DHB issued a press release announcing that it stopped using Zylon in its body armor after the National Institute of Justice revoked its certification of Zylon-containing body armor. In addition, the Company announced that it would replace all Zylon vests in the field. This replacement program would result in an estimated $60 million charge in the third quarter of 2005. On this news, the price of DHB common stock fell by 23% in one day, from $6.66 per share on August 29, 2005 to $5.10 per share on August 30, 3005, on unusually heavy trading volume. DHB's tock price continued to decline, falling to $4.58 by the close of August 31, 2005. The insiders who sold their shares during the Class Period, at the average price of $19.51 per share, avoided tremendous losses. Milberg Weiss Bershad & Schulman LLP (http://www.milbergweiss.com) is a firm with over 100 lawyers with offices in New York City, Los Angeles, Boca Raton, Delaware, Seattle and Washington, D.C. and is active in major litigations pending in federal and state courts throughout the United States. Milberg Weiss has taken a leading role in many important actions on behalf of defrauded investors, consumers, and others for nearly 40 years. Please contact the Milberg Weiss website for more information about the firm. If you wish to discuss this action with us, or have any questions concerning this notice or your rights and interests with regard to the case, please contact the following attorneys: Steven G. Schulman Peter E. Seidman Andrei V. Rado One Pennsylvania Plaza, 49th fl. New York, NY, 10119-0165 Phone number: (800) 320-5081 Email: sfeerick@milbergweiss.com Website: http://www.milbergweiss.com
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