Board of DHB Industries places Chief Executive David H. Brooks on

Long Island Business News, Jul 10, 2006 by Henry E. Powderly II

The board of directors of DHB Industries placed the company's namesake, Chief Executive David H. Brooks, on administrative leave until his legal problems are over, the company announced Monday.

Brooks is currently under federal, state and internal investigations regarding his stock-based compensation. Brooks cashed out nearly $70 million in DHB stock in fiscal 2004.

DHB is also under Securities and Exchange Commission investigation regarding alleged fraud in its inventory records.

According to Monday's statement, Brooks will have no authority at DHB. Retired General Larry Ellis, DHB's president, will assume the role of acting chief executive.

DHB, a body-armor maker that was delisted from the American Stock Exchange on June 30, has begun trading over-the-counter on the Pink Sheets, which means it no longer needs to file with the SEC. However, DHB has said it is working with turnaround firm AlixPartners to file its missing quarterly and annual results, and will try to regain its AMEX listing.

All of us at DHB are working diligently to address the issues at hand and restore confidence in our company and its leadership, Ellis said in a statement.

DHB's stock, which last traded on the AMEX at $1.57 per share, opened on the pinks July 7 at 87 cents per share and has since crept higher. Shares of DHB gained 8 cents, more than 8 percent, to trade at 98 cents per share Monday morning.