Statement from Sabre Defence

Guy Savage CEO

Sabre Defence Industries

NASHVILLE, Tenn., February 17, 2010 – Sabre Defence Industries LLC, an established manufacturer of firearms and weapon systems to the United States military, state and local law enforcement, and worldwide commercial markets, is fully cooperating with federal agents in an ongoing investigation into potential criminal misuse of certain non-saleable firearms produced by Sabre and purchased by some its employees. Sabre has received information that employee(s) involved in inventory control may have obtained and re-sold some items without appropriate licenses. Sabre is and has been cooperating with federal agents in this investigation.

Sabre has more than 120 employees in its Nashville plant. Sabre’s biggest customer is the United States military. Sabre products used by United States armed forces in Iraq and Afghanistan include .50 caliber barrels and components of the M2 Browning machine gun, 7.62 mm mini-gun barrels, and M-16A3 and A4 rifles. Sabre is the only non-public company in the world ever to be awarded a contract for a military spec M-16 rifle. Sabre is dedicated to continuing to provide high quality firearms to the United States military, state and local law enforcement, and Sabre’s commercial customers.

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